The Trump Tsunami: Indians Under Extreme Pressure!

The Indian community has come under a serious bit of repercussion under the leadership of Donald Trump in the United States. Tightened US visa norms are beginning to show a clear ripple effect back home, with Indian education loan companies coming under visible financial pressure.

Over the last few years, overseas education, especially to the United States, has been one of the biggest drivers for education loans in India. Now, with stricter visa scrutiny, delays, and higher rejection rates, that growth engine appears to be slowing.

According to industry observers, a significant portion of education loan portfolios is linked to students heading to the US. As visa approvals become uncertain, many students are either postponing their plans or cancelling them altogether.

This directly impacts loan disbursements, while repayment risks are also rising for loans already issued. Students who fail to secure visas are often left without the overseas income prospects that were factored into repayment plans.

Non banking finance companies that focus heavily on education loans are feeling the heat more than traditional banks. Some lenders have already started tightening their own lending norms, increasing collateral requirements, or reducing exposure to certain countries. Analysts warn that if the situation continues, loan defaults could rise, affecting profitability and investor confidence.

Experts suggest that lenders may need to diversify beyond US focused education loans and explore domestic education or alternative overseas markets to manage long term risk.