Overview
- The committee reported active education-loan accounts fell to 20.63 lakh in 2025 from 23.36 lakh in 2014 even as outstanding debt climbed to Rs 1,37,474 crore from Rs 99,086 crore in 2023.
- Under PM Vidyalaxmi, banks disbursed only 21,967 loans worth Rs 688.27 crore out of Rs 4,427 crore sanctioned on 55,887 applications between February and August 2025, with some banks sanctioning none.
- The panel recommended expanding the Credit Guarantee Fund Scheme for Education Loans by raising the guarantee cover from Rs 7.5 lakh to Rs 20 lakh to reflect current fee levels.
- It urged a two-year repayment moratorium after course completion and strict, uniform guidelines by the Higher Education and Financial Services departments along with RBI and NABARD to curb rejections and delays.
- The report flagged a concentration of borrowers in Tamil Nadu, Kerala and Maharashtra, and sought priority for BPL families using ration cards plus wider outreach through regional languages and loan facilitation centres.