Indian students who have availed education loans to pursue higher studies in the US are increasingly fast-tracking repayments amid uncertainties over visa norms and concerns about job security.

Typically, students who secure jobs in the US after completing their studies take about five to six years to repay their education loans. However, bankers say a growing number of borrowers have accelerated repayments over the last one year by opting for higher monthly instalments and making lump-sum payments.

“Most education loans come with a moratorium period of 12 to 18 months after completion of studies. Of late, we have been witnessing early repayments through higher instalments as well as bulk payments, which is a welcome trend from the portfolio quality perspective,” a senior SBI official told businessline.

An Indian technology professional working in the US, who joined a reputed company six months ago after completing his post-graduation, said he was keen to clear his liabilities at the earliest.

“It will be very difficult to repay my education loan if I suddenly have to return to India, as compensation packages back home may not allow me to set aside enough funds for quick repayment,” he said.

His immediate goal is to repay the ₹50 lakh loan, which could swell to around ₹75 lakh if spread over three years, and remain “prepared” to return to India if circumstances warrant.

A woman software engineer who recently secured employment in the US said visa regulations had become increasingly unpredictable.

“Unlike earlier, I no longer think it is practical to plan for a long-term or permanent stay in the US. Many of us want to work here, repay our loans as quickly as possible and eventually return to India for work,” she said.

In some cases, parents have begun servicing loans even before their children secure jobs. According to a Punjab National Bank official, concerns over the challenging job market in the US have prompted families with the financial capacity to start repayments early in order to reduce the overall interest burden.

According to data of the Ministry of Finance, gross non-performing assets (NPAs) in the education loan portfolio stood at around 2 per cent.

Published on June 10, 2026