Module: General Practice
Q31: Under the Priority Sector Lending norms applicable in 2026, loans to individuals for educational purposes, including vocational courses, are eligible for priority sector classification up to what limit?
✅ Correct Answer: C
The Limit: The eligible limit for Education Loans under Priority Sector Lending remains fixed at ₹25 Lakh per borrower.
The eligible limit for Education Loans under Priority Sector Lending was increased from ₹20 Lakh to ₹25 Lakh in the Revised Guidelines (March 2025) to account for rising education costs.
Scope: This limit applies regardless of whether the course is pursued in India or abroad.
Any amount sanctioned above ₹25 Lakh would not be classified as Priority Sector (or the excess would be disqualified depending on specific reporting formats, but ₹25 Lakh is the classification cap).
The eligible limit for Education Loans under Priority Sector Lending was increased from ₹20 Lakh to ₹25 Lakh in the Revised Guidelines (March 2025) to account for rising education costs.
Scope: This limit applies regardless of whether the course is pursued in India or abroad.
Any amount sanctioned above ₹25 Lakh would not be classified as Priority Sector (or the excess would be disqualified depending on specific reporting formats, but ₹25 Lakh is the classification cap).