New Delhi, May 29 -- US president Donald Trump administration's tough stance on international student visas are worrying lenders, as they are seeing a sharp fall in the number of customers opting for education loans to study in America. Disbursal of loan amounts may also get impacted if visas are cancelled or delayed, the banks warned.

"Banks have seen a 25% reduction in education loans to students applying to US and Canada last fiscal and the growth in education loans will dip further now. More students are now looking at European colleges for admission," said a senior official at one of India's largest public sector banks.

The banks' warnings comes on the back of the US government directing its embassies to stop scheduling new intervi...