Ahmedabad: Education loan disbursals in Gujarat declined by 14% in 2025-26 as fewer students opted to pursue higher education in the US and Canada amid tighter immigration policies, according to the latest report of State Level Bankers’ Committee (SLBC) Gujarat.Banks disbursed Rs 1,786 crore through 22,116 education loan accounts during 2025-26, compared with Rs 2,078 crore across 22,419 accounts in the previous fiscal. While the number of loan accounts fell only marginally, the total value of loans declined significantly, suggesting that students borrowed smaller amounts on average.Banking sector sources attributed the drop primarily to a sharp decline in the number of students choosing US and Canada for higher studies. They said uncertainty over immigration policies and visa regulations prompted many students who had secured education loans to either defer or cancel their overseas education plans. Consequently, several sanctioned loans remained undisbursed, while others were released for lower amounts.Education consultants said the trend marks a significant shift from three years ago, when the US and Canada dominated overseas education enquiries.“The number of students heading to the US and Canada has fallen by nearly 70% from its peak three years ago,” said Bhavin Thaker, a foreign education consultant. “Students are increasingly opting for destinations such as Germany, the UK, Malta, Italy and Finland, where tuition fees are lower and immigration rules are considered more favourable.”The shift towards more affordable destinations has also reduced the average size of education loans.“The overall cost of studying in Germany is around Rs 15 lakh, compared with nearly Rs 25 lakh for a similar programme in the US or Canada. Many students also choose to finance only the first semester before travelling, which further reduces the initial loan requirement,” Thaker said.Consultants added that the depreciation of the rupee has had little impact on education loan demand this year. Although a weaker rupee has increased the cost of overseas education, the effect has largely been offset by the growing preference for lower-cost European destinations and the decline in students opting for traditionally expensive countries such as the US and Canada.
