Propelld's Karnataka Education Loan Report

Propelld’s Karnataka Education Loan Report 2019-2024: Mapping the Future of Education Financing

Explore Karnataka’s evolving education financing landscape—growth, accessibility, and emerging trends.

Introduction

We’re excited to unveil the Karnataka Education Loan Report 2019-2024: Mapping the Future of Education Financing. This report delves into the evolving education financing landscape, highlighting the trends, challenges, and opportunities that have shaped Karnataka’s higher education ecosystem over the past five years.

Karnataka has emerged as a key player in education financing, ranking as the 2nd highest contributor to education loans in India. With ₹319.94 Cr disbursed, Propelld has been at the forefront of enabling students to pursue their academic dreams without financial constraints. The state has witnessed a shift towards Tier 2 cities, an increase in women applicants, and changing course preferences, reflecting broader socio-economic transformations.

From supporting first-time borrowers to making education financing more accessible through digital lending, this report provides a data-driven look into how education loans are shaping the aspirations of Karnataka’s students. Here’s a glimpse into the key trends that defined this period.

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Key Highlights from Karnataka’s Education Loan Story

1. Karnataka’s Leading Role in Education Financing

• Karnataka ranks as the 2nd highest contributor to education loans in India. 
• ₹319.94 Cr disbursed to students across the state. 
• Partnering with 1,028 educational institutions, ensuring financing accessibility.

2.The Rise of Tier 2 Cities in Education Loans

• Loan applications from Tier 2 cities surged from 14% in 2019 to 27% in 2024. 
• Mysore, Belgaum, and Dharwad are emerging as strong education hubs.
• 55.2% of loans still originate from metro areas, but smaller cities are closing the gap.

3. More Women Are Taking Education Loans Than Ever Before

• Female applicants grew from 26.32% in 2019 to 34.11% in 2024. 
• Medical (37.17%) and MBA (33.96%) courses see a strong share of women borrowers. 
• JEE/NEET coaching loans for women at 38.71%, reflecting a rise in STEM ambitions.

4. Shifting Course Preferences Among Students

• Data Science saw peak demand in 2020 but declined by 2024, as students diversify into other fields.   
• MTech and MBA applications have steadily grown, signaling a focus on specialization.

5. Expanding Access to Education Financing

• 27.3% of applicants are first-time borrowers, indicating increasing financial inclusion.
• Self-employed applicants are rising, thanks to alternative credit assessment methods.
• Propelld’s tech-first approach is bridging financing gaps beyond metro cities.

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Market Insights & Student Trends in 2024

Education Loan Distribution:

• 55.2% Metro | 27.8% Tier 2 Cities | 17% Tier 1 Cities
• Bangalore remains the top city for education loans, followed by Mysore, Belgaum, Dharwad, and Kolar.

Women’s Participation in Education Loans:

• Women borrowers continue to rise across STEM and professional courses.
• Medical, MBA, and JEE/NEET coaching loans dominate among female applicants.

Growing Preference for Specialized Higher Education:

• Data Science’s initial boom is fading, while MBA and MTech applications continue to grow.

 Financial Inclusion on the Rise:

• More students from self-employed families are accessing education loans, bridging gaps in traditional lending systems.

Conclusion

The Karnataka Education Loan Report 2019-2024 showcases a period of significant change, highlighting increasing loan accessibility, growing female participation, and shifting course preferences. Propelld’s commitment to democratizing education financing has played a pivotal role in enabling students across Karnataka to chase their dreams.