In a move aimed at making education financing more efficient and accessible, the Finance Ministry has directed all public sector banks (PSBs) to process education loan applications within 15 days of submission, According to a report by The Economic Times.
The decision comes amid growing concerns over delays and lack of clarity in the loan approval process for higher education aspirants across India.
As per the report published on July 8, 2025, the ministry also instructed banks to clear all pending education loan applications submitted up to May 2025.
Additionally, PSBs have been asked to set up centralized credit processing systems and create standard operating procedures (SOPs) to ensure faster, more transparent approvals. The report adds that loan rejections must include proper reasoning and be escalated for review by a senior officer.
The Economic Times cites government sources and ministry-level communication.
This development is expected to benefit thousands of students, especially those applying for studies in engineering, medicine, and overseas universities during the upcoming academic session.