New Delhi, July 9 -- For non-banking finance companies (NBFCs), education loans have been the fastest-growing asset class, clocking over 50 per cent growth in the assets under management (AUM) over the past few years.

According to Crisil Ratings, that pace is set to halve this fiscal as disbursements for pursuing educational courses in the US decelerate following a raft of policy changes there.

To mitigate, NBFCs are diversifying into new geographies and product adjacencies.

While non-performing assets (NPAs) have remained stable so far, asset quality will be monitorable given the global uncertainties and a large proportion of AUM (85 per cent) remaining under contractual principal moratorium.

The education loan AUM of NBFCs grew rapi...