A recent report by Propelld, a leading fintech firm specializing in education financing, has revealed that Karnataka ranks second in India for education loan disbursement. The state has witnessed a 30% increase in female applicants, reflecting a significant shift in financial support for higher education.

The findings highlight Karnataka’s growing demand for student loans and its role as a key education hub, attracting both local and out-of-state students seeking financial assistance.

“Karnataka continues to be one of the most sought-after states for higher education, and the surge in education loans indicates a positive trend toward accessibility and affordability,” said a Propelld spokesperson. (Source: Economic Times)

Key Findings of Propelld’s Education Loan Report

📌 Karnataka’s Ranking & Loan Growth

• Karnataka ranks second among all Indian states in terms of education loan volume.
• The demand for higher education loans has increased significantly, driven by rising tuition fees and demand for specialized courses.

📌 Rise in Women Applicants

• The number of women availing education loans has surged by 30% in Karnataka.
• This shift reflects greater financial independence and access to higher education for women in the state.
• Popular courses among female applicants include engineering, management, healthcare, and finance.

📌 Preferred Loan Amounts & Repayment Trends

• The average loan ticket size has increased, indicating higher tuition costs and demand for premium institutions.
• Students are increasingly opting for flexible repayment plans, easing the financial burden on families.

Why is Karnataka a Leading State for Education Loans?

Karnataka’s position as a top destination for higher education plays a major role in its ranking:

✅ Home to Prestigious Universities & Colleges: Institutions like IISc, IIM Bangalore, NLSIU, RV College of Engineering, and Manipal University attract thousands of students yearly.
✅ Growing Demand for Private Higher Education: With rising private university enrollments, students increasingly turn to education loans to finance their studies.
✅ Expanding STEM & Management Education: Karnataka is a technology and startup hub, boosting demand for engineering, IT, and business courses.
✅ Government & Fintech Support: Companies like Propelld, along with state and central government education loan schemes, have simplified access to student financing.

Challenges & Future Outlook

Despite the rise in education loans, repayment concerns and high interest rates remain key challenges. The education sector is expected to see more innovative loan structures, such as:

🔹 Income-Linked Repayment Models – Students pay based on their post-graduation salary.
🔹 Low-Interest & Government-Backed Loans – More financial aid for students from lower-income backgrounds.
🔹 Wider Loan Coverage – Increased support for vocational and skill-based courses beyond traditional degree programs.

Experts believe that Karnataka’s education loan market will continue to grow, supported by fintech advancements and increasing student aspirations.

“The increasing accessibility of education loans will play a vital role in shaping Karnataka’s future workforce,” says an education finance expert. (Source: Economic Times)

Also Read: AICTE Launches 5200 YASHASVI Scholarships For Core Engineering Courses

Conclusion

The Propelld report reinforces Karnataka’s position as a major higher education hub in India, with a growing number of students relying on education loans. The 30% rise in women applicants is a promising indicator of greater financial inclusion and empowerment in higher education.

With government initiatives, fintech solutions, and flexible repayment plans, education loans are expected to become even more accessible in the coming years.

📢 Are you planning to take an education loan in Karnataka? Share your thoughts in the comments! 👇