New Delhi: Gross Non-Performing Assets (NPAs) in outstanding education loans of Public Sector Banks (PSBs) fell from 7% in FY 2020-21 to 2% in FY 2024-25, indicating a significant improvement in asset quality, the Reserve Bank of India (RBI) informed.

PSBs provide collateral-free education loans up to ₹7.50 lakh under the Model Education Loan Scheme, with higher loans sanctioned on a case-by-case basis as per board-approved policies.

RBI has introduced frameworks for early recognition and resolution of stressed assets. Schemes like PM Vidyalaxmi enable merit-based, collateral-free loans, ensuring financial constraints do not hinder access to quality higher education, the Minister of State for Finance said.