Indian banks have increased scrutiny of their education loan portfolios and are tightening underwriting standards following the US government’s move to tighten H-1B visa norms, including a proposed $100,000 fee per new applicant, sources say. “Students who want to study abroad are hesitant in applying for a loan, considering the latest US move on the H-1B visa. “These loans are generally non-interest-bearing for some period, so banks will be careful in extending fresh education loans. Banks’ education loans exposure stood at ₹1.41 lakh crore as on July 2025, up 15 per cent on a year-on-year (y-o-y) basis. “We are yet to assess how many students who got education loans from us were eyeing and now won’t probably get a H-1 B visa.