Data provided by the government in the parliament reveals that there has been a more than three-fold increase in the number of students availing loans from Public Sector Banks for study abroad during 2012-13 and 2021-22. During the same period, the amount of loans increased by more than 6-fold. Except for the year 2020 which was hit by the COVID-19 pandemic, there has been an increasing trend of Indians travelling abroad for higher education. Our story based on the ‘Open Doors Report’ which conforms to this trend can be read here. Data provided in the recent response in parliament also supports the trend of the increasing number of Indians travelling overseas for education. In fact, the year 2022 recorded the highest number of Indians travelling abroad for purpose of study. Our analysis of these trends can be read here. Better education and post-study opportunities, scholarships by foreign universities, increased awareness of study abroad opportunities, etc. are some of the factors influencing this trend. Another key factor is the availability of educational loans to study abroad. In this story, we look at the trends in loans for study abroad, focusing on education loans by Public Sector Banks (PSBs) in India. More than 6-fold increase in the value of loans disbursed by PSBs for studying abroad Responding to a question asked in Lok Sabha on 13 February 2023, the Government of India furnished details of the loans issued by PSBs for study abroad. The information is provided for 10 Public sector Banks (PSBs). As per these details, during the 10-year period from 2012-23 to 2021-22, around 4.61 lakh students were provided loans for study abroad. This amounts to a total of Rs. 39.26 thousand crores. With the exception of the pandemic hit 2020-21, there is a year-on-year increase in these 10 years, in terms of the number of students as well as the total value of loans disbursed. In 2012-13, PSBs approved and issued loans to 20.37 thousand students. This increased to 26.76 thousand in the next year. Over the next few years, this increased consistently and peaked at 62.95 thousand in 2019-20, the year before the pandemic. However, during 2020-21, it fell to 51.78 thousand because of the pandemic. As highlighted in the earlier story, the number of Indians traveling abroad for study rebounded in 2021-22. This is also reflected in the number of students who took loans to study abroad, which increased to 69.89 thousand in 2021-22. In other words, the number of students who availed of loans for study abroad more than tripled in these 10 years. The proportion of growth is higher in the case of the total value of loans disbursed for study abroad. In 2012-13, a total of Rs.1.18 thousand crores was lent by PSBs for purpose of studying abroad. After a year-on-year increase, Rs. 5.88 thousand crores were disbursed by PSB in the year prior to the pandemic i.e., 2019-20. In 2020-21, it fell to Rs. 4.5 thousand crores. However, in 2021-22, the total value of the loans is Rs. 7.58 thousand crores i.e., more than a 6-fold increase compared to the amount disbursed in 2012-13. During this 10-year period, the average value of loans by PSBs has also increased. In 2012-13, the average was around Rs. 6 lakhs, which increased to around Rs.11 lakhs in 2021-22. SBI has the major share of loans disbursed for Study Abroad During 2021-22, out of the total value of Rs. 7.5 thousand crores lent by PSBs, nearly 47% is by State Bank of India. Even in terms of the number of students who availed loans for studying abroad, nearly 47% availed loans from SBI. Over the 10-year period between 2012-13 and 2021-22, SBI gradually increased its share in the total loans disbursed by PSBs for purpose of studying abroad. In 2012-13, its share was around 32% which increased to 33% & 35% in the next two years. Over the last three years i.e., 2019-20 to 2021-22, the share is around 47%. This could also be because of the merger of associate banks in SBI. It also ought to be noted that apart from an increase in the share, SBI has also contributed to the exponential increase in the total value of loans disbursed by PSBs for this purpose. Other banks which also have a sizeable share in the value of loans disbursed are the Bank of Baroda and Canara Bank. In 2021-22, the share of the Bank of Baroda was around 15%. In 2012-13, it was around 8%. After a fall in share in subsequent years, there is an increase in the last four years. Canara Bank’s share in 2022-23 is also around 15%. Unlike Bank of Baroda, Canara Banks has maintained this share from around 2013-14. These three banks are the key contributors to the increase in the number as well as the volume of loans provided for study abroad. On the other hand, Punjab National Bank (PNB) has a different trend.