Now banks also become cautious due to Canada dispute, problem of education loan increased

Indian students take education loans from banks to study in Canada. Now that India has banned visas till further orders, banks have become cautious about loans and the problems of education loan holders have increased.

In view of the increasing dispute between India and Canada, Indian banks have now become alert. The controversy that started after the murder of Khalistani Nijjar is getting hotter day by day. The effect of bitterness between Canada and India is now visible on the economy as well. Recently, the Indian government has also stopped Canadian visas till further orders. After which Indian banks have also become alert. Let us know why?

Actually, every year a large number of Indian students go to Canada to study. Indian students take education loans from banks to study in Canada. Now that India has banned visas till further orders, banks have become cautious about loans and the problems of education loan holders have increased.

Banks took steps

According to the data of the Ministry of External Affairs, there are more than 1.3 million Indian students in 79 countries. Of these, 14 percent i.e. more than 180,000 Indian students are in Canada. Now that India has banned visas, banks have also become cautious about loans. According to the Money Control report, banks have slowed down the loan process considering the circumstances. Giving information to Money Control, a bank said that in such situations we usually slow down the process. Therefore we can slow down the student loan process.

This much loan was taken from banks

According to Reserve Bank of India data, the outstanding under education loans on Indian banks in the financial year 2023 increased by 17 percent from last year to Rs 96,847 crore, which was Rs 82,723 crore last year.

The country's largest State Bank of India gives maximum education loans. According to the annual report of the bank, the education loan in SBI's portfolio in the financial year 2023 was Rs 32,133 crore. It has given loans worth Rs 15,086 crore to students last year.

There has been a three-fold increase in loan applications from people going abroad between 2021 and 2023. Punjab has bucked this trend with a five-fold increase in loan applications since 2021. Canada is the second most popular destination for Indian students, especially immigrants from Punjab and Haryana. In such a situation, due to bitterness between both the countries, banks have become alert regarding education loans.