For the last week of December, we are taking you back to some of the most popular Daybreak episodes of 2023. We'll be back with regular programming from January 3, 2024.

For the longest time public sector banks, as we know them, have been very reluctant about study abroad loans. And it was for good reason. They’ve suffered greatly because of education loans going bad.

Meanwhile, its a whole different story that was going on with non-banks. Study abroad loans accounted for about US$4 billion in the year ended March 2023. These were almost fully funded by non-banks like Credila and Avanse Financial. Their staregy was simple—sanction collateral-free as fast as possible. Over time they gained experience and most importantly, years worth of data.

Guess who is using all that data and experience gathered by non-banks to offer overseas education loans now?

The banks!

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