US Visa Policies Constrain Growth of Education Loan Non-Bank Financial Corporations

India's Education Loan NBFCs Face Growth Moderation

Avanse Financial Services and Credila Financial Services, the two largest independent education loan non-banking finance companies (NBFCs) in India, are experiencing a slowdown in growth due to restrictive US visa policies under the Trump administration.

Key Figures:

• Avanse Financial Services:
  • Interest income growth: 27.5% year-on-year to Rs 1,846 crore (April-December FY26)
  • Profit growth: 17.28% to Rs 434 crore (FY26)
• Credila Financial Services:
  • Interest income growth: 31.3% year-on-year (first nine months of FY26)
  • Profit growth: 59.8% (first nine months of FY26)

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The slowdown in growth has impacted the capital market plans of these lenders, with Avanse shelving its initial public offering (IPO) and Credila putting its listing plans on hold due to uncertainty over growth visibility.

Growth Moderation Sets In

The moderation in growth is reflected in the financials of both companies. Avanse's interest income growth slowed down to 27.5% year-on-year, compared to 39.7% growth in the same period last year. Profit growth was even more sharply lower, rising just 17.28% to Rs 434 crore in FY26 against a 47.18% jump a year earlier.

Credila, the largest education loan NBFC by assets, has also seen growth cool after an exceptional FY25. Private Equity firms EQT and Chryscapital acquired Credila from HDFC Bank in 2023.

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US Visa Uncertainty Hits Demand

The slowdown in overseas education is also seen in the Liberalised Remittance Scheme (LRS) numbers from the Reserve Bank of India, which showed a sharp 22% contraction in the calendar year 2025 to $2.45 billion from $3.1 billion in 2024.

The tightening US visa policies under President Donald Trump are beginning to reshape student and lender expectations, with a recent analysis by the National Foundation for American Policy (NFAP) warning that proposed changes to the H-1B visa regime could significantly weaken job prospects for international graduates, especially Indian students.

Impact on Indian Students

International students account for more than 70% of graduate enrolments in computer science and engineering fields in the US, and for most Indian graduates, the H-1B route is the only viable pathway to long-term employment after studies. The growing uncertainty around post-study work options could deter Indian students from choosing US universities, while also encouraging American employers to move jobs offshore rather than sponsoring H-1B visas.