There is an increasingly growing demand for education loans from Tier II and III cities, with smaller cities accounting for 86.5% of applications on the Kuhoo Finance platform, according to lending data over a one-year period. This represents a significant shift from traditional metropolitan-focused educational financing, as reported by Mint. Among states, Uttar Pradesh and Maharashtra topped the list for number of applications, with Uttar Pradesh leading at 12.87% and Maharashtra at 12.52% of total applications. The data between January 2025 and July 2026 tracked more than 2.5 lakh applications for education loans worth ₹7.5 crore.
The study revealed a decisive shift toward outcome-driven learning, with job training courses accounting for 41.70% of total disbursals, followed by MBA programmes at 29%, according to Kuhoo Finance data. Other education categories included online courses at 9.80%, engineering at 5.50%, and medical education at 4.70%. As reported by Mint, students are increasingly prioritizing career-focused, outcome-driven education programs that offer clear career payoffs. The data indicates growing demand for structured education loans from students in emerging markets, with increasing preference for career-oriented programmes.
Karnataka followed with 7.16% of applications, while Bihar and Tamil Nadu rounded off the top five with 6.91% and 6.77% respectively. Other states making the top 10 included Andhra Pradesh, Madhya Pradesh, Telangana, West Bengal, and Rajasthan. According to Kuhoo Finance CEO Prashant A. Bhonsle, the data shows that ambition is no longer concentrated in metros but is rising fastest in India's smaller cities and towns. The platform offers customized education financing through a digital-first approach, enabling Indian students to access quality higher education in India.
The insights highlighted evolving trends in education financing across India, with the data indicating a growing demand for financing solutions that accommodate diverse household income profiles. As reported by Mint, students want financing that is transparent, accessible, and aligned with their long-term goals. The platform found increasing preference for career-oriented programmes, with learners increasingly investing in skills with clear career payoffs. The study emphasized how educational aspiration is now firmly taking root beyond metropolitan India, signaling a fundamental shift in how higher education financing is accessed across different regions of the country.
