Bangalore 12 Feb 2024: Propelld today unveiled its comprehensive report “Karnataka’s Education Loan Story – Trends, Insights and Impact”, spotlighting transformative trends in the state’s education financing landscape over the past five years. The report delves into significant growth areas, including a surge in women education loan applicants, the increasing demand for tech-driven upskilling to meet evolving job market needs, early-career professionals prioritizing short-term certifications, and the rapid rise of Tier 2 cities like Mysore, Belgaum, and Dharwad as emerging education hubs.
It further elaborates on the micro-trends driven by demography, gender, and course preferences across different cities in Karnataka from 2019-2024.
Brijesh Samantaray, co-founder, of Propelld, said, “Karnataka is witnessing a transformative shift in education financing, driven by a tech-first approach that replaces traditional brick-and-mortar models. We have disbursed 319.94 Cr of funds over the past 5 years in Karnataka. Only 6% percent of Propelld’s Non-Performing Assets comes from Karnataka, which speaks highly about the awareness among residents about the importance of higher education. The state is the second highest loan amount contributor among all Indian states. This has been made possible by government initiatives that have spurred significant progress in Gross Enrolment Ratio for higher education, even among tribal students and a thriving ecosystem of job opportunities and partnerships.”
Top 5 Cities with Most Loan Takers:
Bangalore
Mysore
Belgaum
Dharwad
Kolar
Speaking about the findings, Propelld co-founder Victor Senapaty said: “Digital lending innovations are bridging gaps, democratizing access to education financing, and driving inclusivity across socio-economic strata. Tier 2 cities such as Mysore, Belgaum, Dharwad, and Kolar are becoming strongholds for educational investments driven by improving access to quality education.
“The growing share of education loans for self-employed individuals marks a significant shift in lending. Traditionally excluded by conventional lenders due to income instability, these borrowers now benefit from digital lending and alternative credit assessments. Post-COVID, self-employed families increasingly recognize the value of higher education, leading to greater investments in their children’s futures. This trend highlights how digital transformation is making education loans more inclusive and expanding access for underserved groups.”
Tech-driven job market dominates course preference: The report provides insights into several upskilling trends including the demand for Data Science among mid-career learners although the number of general applicants for Data Science courses has dropped significantly.
Women in STEM and leadership
Speaking about the need to incorporate gender diversity in corporates, Bibhu Prasad Das, Co-founder, of Propelld, said: “Although the number of women education loan takers has witnessed a 30% growth in 5 years, there is a need to encourage women in their early career stage to grow and learn in their careers. Policy level changes, both at government and at corporate level, will be crucial to enable gender balance in the workspace over the next decade.”
According to the report, 18.6% of women in the 25–30 age group take a loan for upskilling, compared to 21% of men.
“The steady rise in female education loan borrowers, increasing from 26.32% in 2019 to 34.11% in 2024, signals a pivotal societal shift. This change likely stems from greater emphasis on women’s empowerment, increasing career aspirations, and growing acceptance of higher education for women, especially in the past five years. Targeted policies, awareness campaigns, and financial inclusivity efforts have brought about these numbers. As women’s participation continues to grow, the education financing market is evolving to meet their needs, indicating a broader cultural transformation where equal access to education is becoming a norm, fostering long-term social and economic progress,” said Bibhu.