US H-1B relief lifts NBFC loan outlook
A recent U.S. clarification on H-1B visa fees has partly eased concerns about the asset quality of education loan portfolios held by non-banking finance companies, according to a report released on Friday. The one-time fee hike for new H-1B petitions, effective September 21, 2025, applies only to foreign nationals outside the United States and not to those already in the country transitioning from F-1 to H-1B status.
Since the U.S. accounts for 46 percent of NBFCs’ outstanding education loans as of June 30, 2025, the initial fee announcement raised alarms. However, the clarification confirmed that students in the U.S. can still work up to three years post-graduation under the Optional Practical Training (OPT) program, reducing repayment risks for existing loans.
Despite this relief, uncertainty around U.S. immigration policies remains. Potential changes to the OPT program could hurt student employment prospects and strain loan repayment. About 85 percent of the loan book is under moratorium, with only one-third of U.S.-linked loans expected to start EMIs by the end of FY26.
Delinquency remains low—0.2 percent overall and about 1 percent for EMI-paying accounts. Meanwhile, students are shifting to other countries, and the U.S. share in new education loan disbursements fell to 15 percent in Q1 FY26 from 36 percent in FY25 and 55 percent in FY24.
