Kuhoo, an education financing platform, has presented fresh insights into student loan application trends across India, drawing on aggregated and anonymised data from its platform. The findings point to a clear and measurable shift in where demand for education financing is coming from—and how students are approaching higher education.
The data show that the centre of gravity in student loan demand has moved decisively beyond metropolitan India. Tier 3 cities now account for 62% of total applications, making them the single largest contributor to education loan demand. Tier 2 cities add another 24%, while Tier 1 cities contribute 14%, indicating that non-metro markets together dominate the landscape.
This distribution reflects a broader change in access and aspiration. Students from smaller towns are increasingly seeking higher education opportunities, supported by greater awareness of financing options, improved digital connectivity, and a growing emphasis on career-oriented courses. The spread of applications suggests that education financing is no longer confined to urban centres but is becoming more evenly distributed across regions.
At the state level, Maharashtra contributes 13% of applications, followed by Uttar Pradesh at 12%, pointing to strong demand from some of India’s most populous and educationally active regions. Among cities, Bengaluru accounts for 3% of applications, while Pune contributes 2%, indicating that even within established education hubs, the share of demand is relatively smaller compared to the expanding base in non-metro areas.
Course preferences continue to reflect both continuity and diversification. Engineering remains the single largest category, accounting for 15% of total student loan applications, underscoring its continued importance in professional education pathways. At the same time, there is visible growth in demand for financing across disciplines such as management, medical education, and skill-based programmes, suggesting a widening range of career choices among students.
The financial profile of these applications offers further insight. The average loan ticket size stands at ₹5,24,034, but requirements vary significantly by course. Professional programmes account for the highest loan values, with pilot training averaging ₹28,00,000, medical education at ₹18,98,294, and MBA programmes at ₹9,28,009. These figures reflect both the cost structure of specialised education and the willingness of applicants to invest in high-return career paths.
Another notable trend emerges in co-applicant profiles. A substantial proportion of loan applications—particularly in professional courses—are backed by self-employed households. They account for 54% of co-applicants in MBA loans, 35% in medical education, and 29% in engineering, indicating the role of entrepreneurial and non-salaried families in supporting higher education financing.
Commenting on the findings, Prashant A. Bhonsle noted that the aspiration for higher education is no longer concentrated in metro cities, with a growing share of applications coming from smaller towns where families are actively exploring structured financing options to support academic goals.
Taken together, the insights outline a changing landscape of higher education financing in India—one defined by the rise of Tier 2 and Tier 3 cities, expanding course preferences, and evolving financial participation by households. The data provide a directional view of how demand is spreading geographically and diversifying academically, reshaping the contours of education access across the country.
