education loan business research project

7/30/2019 Education Loan Business research project

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A STUDY OF EXPERIENCES OF

CUSTOMER FOR TAKING EDUCATIONALLOAN PRODUCT PROVIDE BY

DIFFERENT BANKS

SUBMITTED TO: Prof. JITENDRA SHARMA

Prof. DAISY KURIAN

SUBMITTED BY: NIDHI JAIN

DATE: 19 MAY, 2012

XCELLON INSTITUTE- SCHOOL OF BUSINESS


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Project Report on

A study of experience of Customer for taking

educational loan product provide by different banks

Submitted to: Prof. Jitendra Sharma

Prof. Daisy Kurien

Submitted By: Nidhi Jain

A report submitted

In a partial fulfilment for the award

Of the Post Graduate Programme in General Business

Management (201113)

Ahmedabad

19 May 2012


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ACKNLOWLEDGEMENT

It has been my proud privilege to work on the project of A STUDY OF EXPERIENCES OF

CUSTOMER FOR TAKING EDUCATIONAL LOAN PRODUCT PROVIEDE BY

DIFFERENT BANKS. I am highly thankful to Prof. Jitendra sharma, who constantly

supported me in my project in spite of their very busy schedule. I am very grateful to them

for their co-operation and guidance throughout the course of my project.

They have given me the opportunity to make a project which would be a real time

project. They have inspired me from time to time in pursuance of developing this

challenging project. Their timely advice and helping attitude has put me across all the

difficulties. They always gave me their valuable guidance and consent without which the

project could not have come in this volume. They owe to every success of this project and

pitfalls are mine.

I own my deepest gratitude and indebtedness to Mrs. Dasiy Kurin, (Faculty, Xcellon

Institute- School of Business). She has been a great source of inspiration to every respect. I

would like to thanks my allclassmates for their co-operation and guidance throughout my

project, I am very thankful to them for providing me all the relevant data that I need.

Nidhi Jain


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TABLE OF CONTENT

Title page...............................................................................................................................2Acknowledgment....................................................................................................................3

Executive summary...............................................................................................................5

1. Introduction.................................................................................................................6

1.1 About educational loan.........................................................................................6

1.2 Objective of the scheme.......................................................................................7

1.3 Application of the scheme.....................................................................................7

1.4 Eligibility criteria....................................................................................................7

1.5 Quantum of finance..............................................................................................8

1.6 Margin.................................................................................................................8

1.7 Security.................................................................................................................8

1.8 Rate of interest....................................................................................................8

1.9 Appraisal...............................................................................................................9

1.10 Repayment......................................................................................................9

1.11 Insurance........................................................................................................9

1.12 Follow up.......................................................................................................10

1.13 Processing charges........................................................................................10

1.14 Capability certificate............................................................................... ........10

1.15 Other condition..............................................................................................11

2 Detail.............................................................................................................................122.1 Education loan....................................................................................................12

2.2 Allabhad bank education loan.............................................................................15

2.3 HDFC Education Loan.........................................................................................18

2.4 Axis Bank Education Loan..................................................................................20

2.5 SBI Education Loan............................................................................................22

2.6 Bank of Baroda Education Loan..........................................................................23

2.7 UCO Bank Educational loan...............................................................................28

2.8 ICICI Education Loan..........................................................................................31

2.9 IDBI BANK Education loan..................................................................................33

2.10 Syndicate Bank Education loan......................................................................36

3 Research methodology............................................................................................ ......39

4 Analysis.......................................................................................................................42

5 Findings & interpretation................................................................................................48

6 Limitations of the study.................................................................................................88

7 Suggestion....................................................................................................................90

8 Conclusion....................................................................................................................93

9 Annexure.......................................................................................................................96

10 References...............................................................................................................


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EXECUTIVE SUMMARY

In the growing global competition, the productivity of any business concern depends upon

the behavioural aspect of consumers. This topic deals with the customers perceptiontowards Educational loan and their experiences.This project report contains 5 different chapters. The report begins with the introduction to

what is education loan according to Indian Banks Association.

The second chapter is the introduction to the Advance Product which gives a brief idearegarding different Education loan product provide by different banks. It also contains theobjectives and limitations of the project.

The third chapter, methodology adopted in preparing this report is mentioned. Covers thesample procedure, types of data used and the data collection method.

The fourth chapter comprehensive coverage of forecasting concepts and techniques whichshows the analysis of data through tabulation, computation and graphical representation ofdata collected from survey.

The fifth chapter deals with the findings, suggestion & conclusion part which is very muchimportant after analysis is made.

As we know that only analysis and conclusion is not the end of a research, so in the sixthchapter the recommendation part is covered which are made after a depth study of the

analysis part of thesis.

In each of the five chapters as described above, every chapter has been scheduled in amanner so as to enable the reader to appreciate the contents easily. The report issupported by figures and data wherever necessary with a view to assist the reader indeveloping a clear cut understanding of the topic.

I hope this report will be extremely useful for those it is meant. Constructive and healthysuggestions for improvements of the report will be great fully appreciated.

Nidhi Jain


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INTRODUCTION:

1. ABOUT EDUCATION LOAN:Education is central to the human resources development and empowerment in any

country. National and State level policies are framed to ensure that this basic need of the

population is met through appropriate public and private sector initiatives. While

government endeavour to provide primary education to all on a universal basis, public

funding of higher education is not considered feasible. Cost of education has been going up

in recent times and since the student has to bear most of the cost, there is a clear case for

institutional funding in this area. This model education loan scheme is an attempt to bring

out a viable and sustainable bank loan scheme to meet the aspirations of our society.

Knowledge and information would be the driving force for economic growth in the coming

years. The current rate of economic growth of the country demands technically andprofessionally trained man power in large numbers. In this backdrop, loans for education

are seen as investments for economic development and prosperity. The model Education

Loan Scheme was developed by the Indian Banks Association to help meritorious students

pursue higher education in technical and professional courses. As the focus is on

development of human capital, repayment of the loan is expected to come from future

earnings of the student after completion of education. Hence the assessment of the loan will

be based on employability and earning potential of the student upon completion of the

course and not the parental income/family wealth.

Based on recommendations made by a Study Group, IBA had prepared a Model

Educational Loan Scheme in the year 2001 which was advised to banks for implementation

by Reserve Bank of India videos circular No.RPCD.PLNFS.BC.NO.83/06.12.05/2000-01

dated April 28, 2001 along with certain modifications suggested by the Government of India.

In line with the announcement made by the Humble Finance Minister in his Budget Speech

for the year 2004-05, IBA had communicated certain changes in the security norms

applicable to education loans with limits above `.4 laths and up to `.7.5 laths. The scheme

was further modified in the year 2007-08 based on experience gained in the operation of

the scheme over the years.

With increased public awareness about the benefits of the education loan scheme, bank

branches are receiving more and more applications for loans every year. This has also

resulted in cases of customer grievances due to misinterpretation of the provisions of the

scheme. This review exercise has been taken up to make the scheme more transparent

and minimise scope for multiple interpretations leading to disputes.

2. OBJECTIVES OF THE SCHEME


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The Educational Loan Scheme outlined below aims at providing financial support from the

banking system to meritorious students for pursuing higher education in India and abroad.

The main emphasis is that a meritorious student, though poor, is provided with an

opportunity to pursue education with the financial support from the banking system with

affordable terms and conditions.

3. APPLICABILITY OF THE SCHEME:The scheme detailed below could be adopted by all member banks of the Association or

other banks and financial institutions as may be advised by the Reserve Bank of India. The

scheme provides broad guidelines to the banks for operational sing the educational loan

scheme and the implementing bank will have the discretion to make changes as deemed fit.

The scheme details are as under:

4. ELIGIBILITY CRITERIA:4.1 Student eligibility:

The student should be an Indian National

Should have secured admission to a higher education course in recognized

institutions in India or Abroad through Entrance Test/ Merit Based Selection process

after completion of HSC(10 plus 2 or equivalent). However, entrance test or selection

purely based on marks obtained in qualifying examination may not be the criterion for

admission to some of the post graduate courses or research programmes. In such

cases, banks will have to adopt appropriate criteria based on employability and

reputation of the institution concerned.

4.2 Courses eligible

a. Studies in India: (Indicative list)

Approved courses leading to graduate/ post graduate degree and P G diplomas

conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/

AIBMS/ ICMR etc.

Courses like ICWA, CA, CFA etc.

Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc. Regular Degree/Diploma courses like Aeronautical, pilot training shipping etc.,

approved by Director General of Civil Aviation/Shipping, if the course is pursued in

India.

Approved courses offered in India by reputed foreign universities.

(b) Studies abroad:-

Graduation: For job oriented professional/ technical courses offered by reputed

universities.

Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA- London, CPA in USA etc.


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8. RATE OF INTEREST :Interest to be charged at rates linked to the Base rate as decided by individual

Banks

Simple interest to be charged during the study period and up to commencement of

repayment.

9. APPRAISAL / SANCTION/ DISBURSEMENT: Applications will be received either directly at bank branches or through on-line

mode. Upon receipt of application, standard acknowledgement giving a reference

number will be issued. The acknowledgement will contain contact details of the bank

official who, could be contacted in case of delay in disposal of application.

Normally, sanction/rejection will be communicated within 15 days of receipt duly

completed application with supporting documents.

In the normal course, while appraising the loan, the future income prospect of the

student only will be looked into.

Rejection of loan application, if any, shall be done with the concurrence of the

controlling authority of the branch concerned and conveyed to the student stating

reason for rejection.

Normally, loan application will be accepted by the branch nearest to the residence of

parents. However, the sanction of loan will be as per delegation of powers by the

bank.

The loan to be disbursed in stages as per the requirement/ demand directly to the

Institutions/ Vendors of equipments/ instruments to the extent possible.

10. REPAYMENT:

Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job,

whichever is earlier.

If the student is not able to complete the course within the scheduled time, extension of time

for completion of course may be permitted for a maximum period of 2 years. If the student is

not able to complete the course for reasons beyond his control, sanctioning authority may at

his discretion consider such extensions as may be deemed necessary to complete the

course. In case the student discontinues the course midway, appropriate repayment

schedule will be worked out by the bank in consultation with the student/parent.

The accrued interest during the repayment holiday period to be added to the

principal and repayment in Equated Monthly Instalments (EMI) fixed.

1% interest concession may be provided by the bank, if interest is serviced during

the study period and subsequent moratorium period prior to commencement of

repayment. Repayment of the loan will be in equated monthly instalments for periods

as under:


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For loans upto - 7.5 laths - upto 10 years

For loans above - 7.5 laths - upto 15 years

11. INSURANCEBanks may, with the consent of the student, arrange for life insurance policy on the students

availing Education Loan. Individual Banks may work out the modalities with insurance

companies.

12. FOLLOW UP/MONITORING:Banks to contact college/ university authorities to obtain progress report on the student at

regular intervals in respect of those who have availed loans. In case of studies abroad,

bank may obtain the SSN/Unique Identification Number (UIN)/Identity Card and note the

same in the banks records. The UID number issued by UIDIA may also be captured in

banks system as and when available.

13. PROCESSING CHARGES :No processing / upfront charges may be levied on loans sanctioned under the scheme.

14. CAPABILITY CERTIFICATE:Banks can also issue the capability certificate for students going abroad for higher studies.

For this purpose financial and other supporting documents may be obtained from applicant,if required.

15. OTHER CONDITIONS:

15.1 Sanction of loan to more than one child from the same family

Existence of an earlier education loan to the brother(s) and/or sister(s) will not affect

the eligibility of another meritorious student from the same family obtaining education

loan as per this scheme from the bank.

15.2 Minimum Age

There is no specific restriction with regard to the age of the student to be eligible for

education loan. However, if the student was a minor while the parent executed

documents for the loan, the bank will obtain a letter of ratification from him/her upon

attaining majority.

15.3 Top up loans

Banks may consider top up loans to students pursuing further studies within the

overall eligibility limit, if such further studies are commenced during the moratorium


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period of the first loan. The repayment of the loan will commence after the

completion of the second course and further moratorium period, as provided under

the scheme.

15.4 Joint BorrowerThe joint borrower should normally be parent(s)/guardian of the student borrower. In

case of a married person, joint borrower can be spouse or the parent(s)/parents-in-

law.

No Due Certificate

No due certificate will not be insisted upon as a pre-condition for considering education

loan. However, banks may obtain a declaration/ an affidavit confirming that no loans are

availed from other banks.

Disposal of loan application

Loan applications have to be disposed of in the normal course within a period of 15 days to

1 month, but not exceeding the time norms stipulated for disposing of loan applications

under priority sector lending.


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DETAIL

Education Loan | Student Loan

Education Loan: Education loans/Student loans are easily available from many banks and

financial institution facilitating many students to pay for their higher education.

Special Education Grant

Special education generally refers to students who are differently-abled. However, it can

also refer to students who require special education needs in other ways. For example,

students with emotional difficulties that make it difficult to study may qualify for certain typesof special education grants and loans. Students who are not able to attend regular classes

for a specific reason may also qualify for special education loans and special consideration

when pursuing a college degree. If, for example, you are hospitalized, you may qualify for

special aid. Special education grants exist from a number of sources. These types of aid do

not have to be paid back but allow students to pay for their education.

Grants for special education should be sought out earnestly by those were qualified for

them. When it comes to grants, special-education students do qualify for both regular grants

and special education grants. Students will want to apply for both types of grants to ensure

that they get the funding they need.

Special Education Financial Aid options:

If you have a condition that prevents you from attending classes or taking part in degree

programs regularly for example, you are differently-abled or seriously ill and cannot leave

the hospital room then special grants and loans exist to help you pay for education.

Students with special needs often find that they require extra money for school. They may

require Braille translated textbooks, for example, or they may require special computer

equipment that allows them to study. Grants designed especially for special-education hopeto address these additional costs for students while at the same time encouraging students

with different abilities to apply for degree program.

Criteria for Special-Education Scholarship, Grant, or Loan:

If you have trouble with school because of the physical, emotional, or mental challenge,

then chances are pretty good that there are financial aid options available for you. Some

types of special-education scholarships or grants are designed for people with specific

types of challenges. Others are simply earmarked for anyone who faces special challenges

when pursuing an education.


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Depending on the grants or scholarships to apply for, you may find that you require

additional application materials. Often, you will need to provide a doctors note or some

other confirmation of your condition. Youll often also be asked to describe how your

condition affects your ability to function.

Types of Special-Education Financial Aid Options:

If you have special needs when it comes to education, there are many places that you can

turn to for financial aid:

The American Council on Educations HEATH Resource Centre Offers Financial

Aid and Advice and Resources for Students

Special Government Grants and Scholarships Exist for Students with Special

Needs

Private Scholarships Created Specifically for Students with Special EducationNeedsYour schools financial aid office will have a list of such private scholarship

and grant opportunities. Most schools have their own scholarships and grants

designed for differently-abled students. If your school has a special education office

or center, that center will be able to give you additional help and resources.

Special Education Loans

If you require additional money because of special needs, special-education borrowing can

help you make up the difference between your needs and your financial aid package.Federal student loan programs as well as private lenders will be able to lend you money

that you can use toward your schooling. Once you finish your schooling or no longer

enrolled, you will need to pay back your debt with interest.

Distance Education Loans

Distance education is more popular than ever today. It allows students to study remotely,

without having to attend classes at a university. This allows students from all walks of life to

pursue a college education without disrupting their family or work life. While there is no

doubt that distance education makes education more accessible to many, students often

find that they require distance education loans in order to pay for their remote education.

Distance learning education loans are more available than ever before. Students can now

turn to a number of sources in order to get the money they need to succeed in school.

Alternative Education Loans


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Alternative education loans are also known as private education loans. These loans are

simply amounts of money lent by private lenders. They may be offered by banks, private

companies, or other financial institutions or persons. The loans are attractive to distance

education students because they are so flexible. You do not need to be a full-time student,

in many cases, to qualify for some form of loan. You often do not need to be a UnitedStates citizen in order to apply for such loan. You can also apply this type of education loan

to any school you attend.

Financial Institution Loans Flexible Loans

You should consider private loans from financial institutions. Student loans from financial

institutions are very flexible, have competitive rates, and can be used for a wide variety of

school related expenses.

Bank Loans

If youre looking for online distance education loans, you may wish to seek out traditional

loans as well. Traditional lines of credit, credit cards, personal loans, and other types of

loans can provide a good alternative to distance education loans. These loans can help you

pay off your education, and do not require an extensive application process. As long as

your credit is decent, you can get approved with competitive interest rates. Of course, you

will need to start repaying your loan right away. However, since many people pursuing

distance education work full time as well, this is rarely a problem. An advantage of this type

of loan is that it does not leave the student with a large debt after graduation. Plus, sincemany people pursuing distance education do so one course at a time, it is possible to get

out one or two small loans in order to pay for education. In many cases, students find that

this is enough.

Employer Education Loans

Some employers offer their employees financial assistance in order to go to school. Often,

this is because extra education can make an employee more productive and more valuable

to the workplace. Some employers are willing to offer private loans, or offer loans based on

employers retirement contributions, in order to allow the employee to attend distance

education courses.

NOW we have all the options in front of you to make the educational journey backed by

proper financial assistance if you need any.


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Allahabad Bank Education Loan

Allahabad Bank Education Loans Schemes Compare Eligibility, Interest Rates, Offers,

EMI and Procedure of Education loan from Allahabad Education Loan.

Eligibility:

Indian National who has secured admission to professional/ technical courses in recognized

institutions in India or Abroad through Entrance Test/ Merit Based Selection Process after

completion of H.S.C. (10 plus 2 OR equivalent).

Courses Eligible:

Courses eligible for study in India:

Approved courses leading to Graduate/ Posy-Graduate degree and P.G. Diplomas

conducted by recognized Colleges/ Universities recognized by UGC/ Govt./ AICTE/ AIBMS/

ICMR etc.


Courses conducted by IIMs, IITs/ IISc, XLRI, NIFT, NID etc.

Regular Degree/ Diploma Courses like Aeronautical, Pilot Training, Shipping etc. approved

by Director General of Civil Aviation/ Shipping, if the course is pursued in India.

Approved courses offered in India by reputed Foreign Universities.

Courses eligible for Study abroad:

Graduation: For Job oriented professional/technical courses offered by reputed

Universities.

Post Graduation: MCA, MBA, MS etc.

Courses conducted by CIMA London, CPA in USA etc.

Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., the Institute

duly recognized by the Competent University/ State Body/ Local Aviation/ Shipping

Authority.

Education Loan Interest Rates


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(i) For IIT/ IIM/ ISB (loan upto 10.00 Lacs) 10.75%+2.25% = 13.00%

(ii) For Others

(a) Loan upto 4.00 Lacs 10.75%+3.00% =13.75%

(b) Loan above Rs.4.00 Lacs 10.75%+3.00% =13.75%

@ For girl students, rebate @1% will be allowed under each slab.

Rebate of 1.00% on the interest charged in the moratorium period will be provided if the

interest is serviced during the study period when repayment holiday is specified for interest /

repayment under the scheme.

Quantum of Loan:

Need based finance subject to repaying capacity of the parents / students with following

ceilings:

Studies in India: Maximum Rs. 10.00 lac

Studies abroad: Maximum Rs. 20.00 lac.

Expenses Considered for Loan

Fee payable to College / School /Hostel

Examination/Library/Laboratory Fee

Purchase of Books / Equipments/ Instruments/ Uniforms.

Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/Receipts of the

Institution, subject to the conditions that amount does not exceed 10% of the total tuition

fees for the entire course.

Travel Expenses/Passage Money for studies abroad.

Purchase of Computers essential for completion of the course at reasonable cost.

Insurance premium for student borrower.

Any other expenses required to complete the course, such as- Study Tours, Project Work,

and Thesis etc.


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Reimbursement of the fee paid at the time of counseling if applied within 60 days from the

date of such payment.

Repayment:

Repayment Holiday / Moratorium is Course Period + 1 year or 6 months after getting job,

whichever is earlier.

Loans up to Rs.7.50 Lac to be repaid within a maximum period of 10 years & those above

Rs.7.50 Lac within a maximum period of 15 years after commencement of repayment

period.

Available Products of Allahabad Bank :-

Allahabad Bank Home Loan

Allahabad Bank Personal Loan


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HDFC Education Loan

HDFC Education Loan: Compare and Choose Best Education Loans with lowest Current

Interest Rates, Documents, Eligibility and Apply Online. With HDFC bank student education

loans, pursue your dream higher studies without worrying for financial assistance. Weprovide student education loans for all Graduate, Post-Graduate, Engineering, Medical,

MBA , Vocational Courses (Multi-Media, ERP) offered by recognized institutions in India. No

more running from pillar to post for availing student loans! Our friendly sales managers will

guide you in every step to make your dreams into reality.

Features & Benefits

Student Loans Upto Rs. 15 Lakhs for education In India

Unsecured Lending Upto INR 7.5 Lakhs

No Collateral Or Third Party Guarantee**

Wider Range Of Collateral For Loans Above INR 7.5 Lakhs

Residential Property

HDFC Bank Fixed Deposit

LIC/NSC/KVP

Loan available upto tenure of 7 years including moratorium period

Repayment to start 1 year after course completion / 6 months after obtaining

employment (whichever is earlier)

Loans available for short duration/ job oriented courses also

Avail the tax rebate, offered under section 80-E of the Income Tax Act 1961* forthe entire interest amount paid towards your education loan.

Click here to view the income tax circular.

E-mail [email protected] to receive interest certificate for FY 09-10.

Loans available for other course related expenses also!

Special privileges Eligibility

Service At Your Door Step You need to be a Resident Indian

Loans disbursed directly to the educationalinstitution as Per the Fee Schdule. You should be aged between 16 35 yrs.

Insurance Protection from HDFC ERGO Collateral is required for all loans greater thanRs. 7.5 Lakhs.

Gateway To Other Banking Products AndServices.

All Loans require a co-applicant. For co-applicant eligibility

Savings Account For complete documentation

Click to Know Fees and Charges

Insurance Protection from HDFC ERGO General Insurance Company Ltd


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HDFC ERGO General Insurance Company Limited is a 74:26 joint venture between HDFC

Limited, Indias premier Housing Finance Institution & ERGO International AG, the primary

insurance entity of Munich Re Group.

HDFC ERGO focuses on providing the Right Insurance Solution for all. They offer

customers complete range of general insurance products ranging from Motor, Health,

Travel, Home and Personal Accident in the retail space and customized products like

Property, Marine and Liability Insurance in the corporate space.

The organization has been expanding its presence across the country and is today present

across 46 cities with 52 branch offices with an employee base of over 650 professionals.

The company has a right balance of distribution channel comprising of Dealerships,

Brokers, Retail and Corporate Agents, Banc assurance and Direct Sales Team.

HDFC Education Loan Fees and Charges: Compare Fees and Charges of HDFCEducation loan online and Apply Online HDFC Education Loan.

Description of Charges Education Loan

Loan Processing Charges Upto a maximum 2% of the loan amount

Prepayment (upto 6 months of repayment ) No pre-payment permitted

Pre-payment charges (after 6 months ofrepayment)

Upto 4% of the Principal Outstanding

No Due Certificate / No Objection Certificate(NOC)

Nil

Solvency Certificate Not applicable

Charges for late payment of EMI @ 24 % p.a. on amount outstanding fromdate of default

Credit assessment charges Not applicable

Non standard repayment charges Not applicable

Cheque swapping charges Upto Rs. 500/- per event

Loan Re-Booking / Re-SchedulementCharges

Upto Rs. 1000/-

Bounce Cheque Charges Upto Rs. 450/- per Bouncing

Legal / incidental charges At actual

Stamp Duty & other statutory charges As per applicable laws of the state

For studies in India, maximum Rs. 10 laces

Studies abroad, maximum Rs. 20 laces
http://www.deal4loans.com/loans/education-loan/education-loan-student-loan/http://www.deal4loans.com/loans/education-loan/education-loan-student-loan/


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Axis Bank Education Loan

Axis Bank Education Loan Axis Banks Study Power aims to provide financialsupport to deserving students for pursuing higher professional or technical education in

India and abroad. The loan would be provided to students who have obtained admission to

career-oriented courses e.g., medicine, engineering, management etc., either at the

graduate or post-graduate level. Apply online for Education Loan

Axis Bank Offers Loan upto Rs.10 laces for studies in India and Loan upto Rs. 20

lacs for studies abroad.

Rates of

Interest

Loan

Processin

g Charges

Prepaymen

t Charges

No Due

Certificat

e

Solvency

Certificat

e

Charges

for Late

Paymentof EMI

Charges

for

changing from

fixed to

floating

rates of

interest

Charges

for

changing from

floating

to fixed

rates of

interest

13.75%

15.75%

*Repayable in

maximum 7

years from the

commencement of instalment.

Nil Nil NA NA Rs 500 +

taxes per

cheque

bounce

and a

penalinterest

@24% perannum i.e.

@ 2% per

month on

the

overdue

instalment/

s

NA NA

Quantum of Loan:

The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and Rs20.00 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books,

etc. The minimum amount of loan would be Rs 50,000.

Margin:

No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for studies within India

and 15% for higher studies overseas.

Role of the Guardian:


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The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her

role would be, necessarily, like the primary debtor.

Security:

Third party guarantee and/or collateral security may be asked for in appropriate cases.

Additional Security:

Assignment of LIC policy in favour of the Bank for the sum assured being at least 100% of the loan

amount. The policy is kept alive during the currency of the loan. To ensure this, the annual premium

may be included in the computation of the loan requirement, along with the tuition fees and other

recurring charges. Further, the future income of the student needs to be assigned in favour of the

Bank for meeting the instalment obligations.

Disbursement:

The loan will be disbursed in full or in suitable instalments taking into account the requirement of

funds and/or fee schedule as assessed by the Bank directly to the educational institution or vendor

of books or equipment or instruments.


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SBI Education Loan

Loan Amount Rate of Interest

Loans upto Rs. 4.00 Lacs 11.25% p.a.Loans above Rs. 4.00 Lacs and upto Rs. 7.50 Lacs 12.75% p.a.

Loans above Rs. 7.50 Lacs 11.75% p.a.

An Interest Rate concession of 0.50% to Girl Student availing Student Loans

Documents required for SBI Education Loan

Completed Education Loan Application Form.

Mark sheets of last qualifying examination

Proof of admission scholarship, studentship etc

Schedule of expenses for the specified course

2 passport size photographs

Borrowers Bank account statement for the last six months

Income tax assessment order, of last 2 years

Brief statement of assets and liabilities, of the Co-borrower

Proof of Income (i.e. Salary slips/ Form 16 etc)

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing a job,whichever is earlier.


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BANK OF BARODA Education Loan

Baroda Education Loan

Education is the most important investment one makes in life. Higher studies and

specialization in certain fields call for additional financial support from time to time.

Whether you are planning school education (nursery to standard XII) of your child, pursuing

a graduate or post-graduate degree, the Bank of Baroda Education Loans, can help finance

your ambitions and goals.

Following are the loan options available:

Bank of Baroda presents a one of its kind finance option for parents of students pursuing

school education. These loans are available for studies from Nursery to Senior Secondary

School.

No processing & documentation charges.

No Margin.

No security required.

Eligibility :

Should be an Indian national residing in India.

Student should have secured admission to a recognized school / High school / Jr.

College (including CBSE / ICSE / State Board) for any of the following courses

1. Stage I : Nursery to Vth STD.

2. Stage II : VI th to VIII STD.

3. Stage III : IX th to XII th STD.

Coverage of expenses for :

Fee payable to college / school.

Examination / Library / Laboratory Fee.

Fee and other charges payable to hostel.

Purchase of books / equipments / instruments / uniforms.

Personal Computers / Laptops wherever required.

Caution deposit / building fund / refundable deposit supported by institution bills /

receipts

Maximum Loan Amount: Rs.4.00 Lacs


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Repayment Period :

Loan for each yearly sub limit is repayable in 12 equal monthly instalments. First

instalment to be due 12 months after first disbursement of each year's loan

component.

The parents must be residing in the place for a minimum period of -3- years, except in the

case of transferable job.

Security :

In case the loan is given for purchase of computer the same is to be hypothecated to

the bank.

Rate of Interest :

1% concession in rate of interest to loans for girl students.

Interest to be serviced as and when applied during moratorium period.

Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lacks

Baroda Gyan

A loan product specially designed for students pursuing Graduation, Post - Graduation,

Professional & Other courses in India. Bank of Baroda extends a helping hand to energizeyour studies and promote education of the youth.

No processing charges.

No Margin on loans upto 4 lacs.

Free Debit Card.

Courses Eligible :

All Graduation courses.

All Post Graduation courses & Doctorate courses.

Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law,

Dental, Management, Computer, Ayurved, Homeopathy, Physiotherapy, Hotel

Management, Hospital Management, Interior Designing, Architecture, Event

Management, Mass Communication, Fashion Technology, etc.

Computer certificate courses of reputed institutes accredited to Dept. of

Electronics or institutes affiliated to Universities.

Courses like C.A, ICWA, CFA, CS, etc.

Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.

Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc.,approved by Director General of Civil Aviation/shipping.


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Other courses leading to diploma / degree etc. conducted by colleges/universities

approved by UGC/Govt./ AICTE/ AIBMS/ ICMR etc.

Courses offered in India by reputed foreign Universities.

Evening courses of institutes approved by

State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR. Courses offered by National Institutes and other reputed private institutions. The

College/Institute must have been approved by the State/Central

Govt./UGC/AICTE,etc.

Student Eligibility:

Should be Resident Indian.

Secured admission to either of above courses

Coverage of Expenses:

Fee payable to college / Institution / University.

Examination / Library / Laboratory Fee.

Fee and other charges payable to hostel.

Purchase of books / equipments / instruments.

Personal Computers / Laptops wherever required.

Caution deposit / building fund / refundable deposit supported by institution bills /

receipts.

Any other expenses required to complete the course - like study tours, projectworks, thesis, etc.

Maximum Loan Amount : Rs.10.00 Lacs.

Margin :

Upto Rs. 4.00 lacs :- NIL

Above Rs. 4.00 lacs :- 5%

Margin is to be contributed on pro rata basis on year to year basis as and when

disbursements are availed.

Repayment Holiday / Moratorium Period :

Course period + 1 year or 6 months after getting job, whichever is earlier.

Repayment Period :


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The loan is repayable in 5-7 years after the above period.

Security :

Upto Rs.4 lacs : No security

Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable

third party guarantee alogn with assignment of future income.

Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan

amount along with assignment of future income

Rate of Interest :

Simple interest to be charged at monthly rests during the repayment holiday /

moratorium period.

1% interest concession is provided if interest debited during repayment holiday is

serviced.

1% Concession in rate of interest to loans for girl student.

Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds

Rs.4.00 lacs.

For loans above 4 lacs, interest rate will be 2 % above base rate for ISB,

Hyderabad Students which is 2 % less than that for students of other institutes

Baroda Scholar

Bank of Baroda presents financial assistance to students going abroad for Professional /

Technical studies. The loan offering is designed to empower you with the financial capability

to realise your dreams... Achieve your goals... Reach out to the maximum limits...

Eligibility of Courses :

Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses

offered by reputed Universities overseas.

Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc. The Institute

should be recognized by the competent local aviation / shipping authority and Director

General of Civil Aviation/shipping in India.

Student Eligibility :

Should be an Indian National.

Secured admission to Professional/Technical Courses at foreign

Universities/Institutions.

Coverage of expenses (for overseas studies) :

Admission/Tuition fees to College/University.


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Hostel/Mess charges.

Examination/Library/Laboratory fee.

Purchase of books/equipments/instruments.

Caution deposit/building fund/refundable deposit supported by institution

bills/receipts. One way travel expenses/Passage money.

Purchase of computers if essential for completion of the course.

Any other expense required to complete the course e.g. study tour, project work,

thesis etc.

Maximum amount of loan:Rs. 20.00 Lacs.

Margin:15%

Repayment Period :

Repayment Holiday/Moratorium Period :

Course period + 1 year or 6 months after getting job, whichever is earlier.

The loan is repayable in 5-7 years after the above period.

Security:

Upto Rs.4.00/- lacs : No security Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable

third

party guarantee alogn with assignment of future income.

Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan

amount along with assignment of future income

Rate of Interest:

Simple interest during repayment holiday/moratorium period.

1% interest concession, if interest debited during the repayment holiday is

serviced.

1% Concession in rate of interest to loans for girl student.

Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lacs.


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UCO Bank Education Loan,

UCO Bank Provides Education Loan, for eligible Indian students studies in India and

Abroad. UCO Bank Education Loan Interest rates vary depends on the total Loan

sanctioned and type of Course. UCO Bank Provides Education loan of 4 laths to 10 laths for

Indian Education courses of Graduation and Post graduations. For Abroad studies the loan

will be up to 20 laths. You can have the complete details on UCO Bank Education loan,

Interest rates, Documents required while submitting the application form, Schemes,

courses, re-payment and eligibility for UCO Bank Education loan for student to study in

India & abroad

UCO Bank Education loan interest rates, terms and conditions

UCO Bank Education loan starts form 4 laths and the max loan scheme is 10 laths for

Education in India. And up to 20 laths for study abroad. Students, who want to take loan

amount of 4 laths , no need to give any security. UCO Bank Education loan re-payment

period is 5-7 years.

For more than 4 laths and up to 7.5 laths of Education loan, student have to give third party

guarantee to re payment of Education loan along with parents(Third party) Salary

documents, Bank balance sheet and other Property proofs.

For more than 7.5 laths and up to 10 laths, UCO Bank executives will check all necessarydocuments, according to UCO Bank Education loan terms and conditions to provide loan as

per parents future Income and type of course selected by student.

Up to 20 laths education loan(only for foreign studies), students have to submit all

documents with proof of admission in college, according to UCO Bank terms and conditions

UCO Bank Education loan Interest Rate:

For 4 laths of UCO Bank loan, students have to pay 13.75% per year and the amount of

above 4 laths and below 7.5 laths need to pay 14.50% of interest. Candidates, who got

more than 7.5 laths and up to 20 laths, have to pay interest rate of 14.50% per year. You

can have the below chart to get conclusion on UCO Bank Education loan Interest rate.

4 Lakhs- 13.75% p.a

4 laths to 7.5 laths- 14.50% p.a

Above 7.5 lakh 14.50% p.a

UCO Bank Education Loan courses:

1. Regular Professional and Technical Education courses of Graduation and Post-graduation studies, which are approved by AICTE/UGC/Government of India.


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2. Aeronautical, Shipping degree and Diploma courses

3. Teacher Training and Nursing Courses, approved by state government or central govt of

India.

4. Job oriented professional courses for abroad studies

4. Degree/Intermediate courses

UCO Bank Education Loan covers:

UCO Bank Education Loan in India and foreign includes College fee, exam fee, building fee

and other fees like library/lab etc. With this Education loan you can purchase any 2-

wheeler. You can have the complete expenses and how this Education loan helps you to

study in India and abroad

Examination fee

Tuition Fee

2-Wheeler/travel expenses

Laboratory/Library fees

Books and other Equipment charges

Purchase Computer/Laptop

Insurance

Hostel Fee etc

Documents required while applying for UCO Bank Education loan tostudy in India and abroad:

Students have to submit the following documents to get UCO Bank Education loan.

Candidates have to fill the UCO Bank Education loan application form and must include

relevant necessary documents of latest last 2 months salary slip of parent and income tax

assessment sheet. Student have to attach one set of Education qualification certificates of

his/her last studies like 10th class and Intermediate etc. you can have the complete details

on UCO Bank Education loan documents need to submit to approve/get loan.

Income Proof-Any either salary slip/other

Residency proof

Education Certificates of SSC, Intermediate and other necessary, if required.

Income tax assessment of last 2 years

Last 6 months of Bank account balance sheet

Latest 2 passport Photo graphs

Admissions proof in college

Passport/Visa

Repayment:


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1. After 1 year completion of course or After 6 months of getting job, whichever is happen

earlier?

2. Loan re Payment period is commencement of 5-7 years

to Get more details on UCO Bank Education Loan


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ICICI Education Loan

The Educational Loan Scheme aims at providing financial support to deserving/ meritorious

students for pursuing higher education in India and abroad.

Eligible Student :

Should be an Indian National

Secured admission to professional/ technical courses in India or Abroad through

Entrance Test / Merit Based Selection process.

Courses Eligible :

Studies in India

Graduation courses, Post Graduation courses, Professional courses, Computer

certificate courses, Courses like ICWA, CA etc, Courses conducted by IIM, IIT etc.,

Courses offered in India by reputed foreign universities, Evening courses of

approved institutes, Other courses leading to diploma/ degree etc. conducted by

colleges/ universities approved by UGC/ Govt etc., Courses offered by National

Institutes and other reputed private institutions, Teacher Training Course/Nursing

Course/B.Ed approved either by the Central Government or by State Government

and such courses should lead to Degree or Diploma Course

Studies abroad

Graduation : For job oriented professional/ technical courses offered by reputed

universities, Post graduation: MCA, MBA, MS, etc., Courses conducted by CIMA-

London, CPA in USA etc.

Expenses considered for loan :

Fee payable to college/ school/ hostel

Hostel expenses (Wherever students have to stay outside the campus or avail

private accommodation banks may consider reasonable lodging & boarding

expenses)

Examination/ Library/ Laboratory fee

Purchase of books/ equipments/ instruments/ uniforms

Caution deposit/ building fund/ refundable deposit supported by Institution bills/

receipts

Travel expenses/ passage money for studies abroad.


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Quantum of finance :

Need based finance subject to repaying capacity of the parents/ students with margin

and the following ceilings.

Studies in India - Maximum Rs.10.00 lacs Studies abroad - Maximum Rs.20.00 lacs

Margin :

Upto Rs 4 lacs : Nil

Above Rs 4 lacs : Studies in India 5% Studies Abroad 15%

Security :

Loans Upto Rs 4 lacs - Co obligation of parents.

Further wherever parents are not there banks could consider grandparent as co

obligator to the loans taking into account their net worth

Above Rs 4 lacs and upto Rs. 7.5 lacs

Co obligation of parents along with Collateral in the form of a suitable third party

guarantee for 100% of the loan amount to be taken

For cases above Rs 7.5 lacs

Co obligation of parents along with Collateral security of 100% value of loan

Assignment of future income of the student for payment of the loan instalments for all loans

The co-obligator should be parent(s)/guardian of the student borrower. In case of married

person, co-obligator can be either spouse or the parent(s)/parents-in-law

Rate of Interest :

I Base + Applicable Margin

At least 0.50% concession in interest rates on Education Loans to girl students for

pursuing higher education in India and abroad

Penal interest @2%

Repayment / Holiday :

The repayment holiday shall be a year more than the period of the course or 6

months after the borrower gets a job, whichever is earlier.

The loan shall be repaid in 5 - 7 years after commencement of repayment


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CENTRAL BANK OF INDIA Education Loan

Objective

The scheme aims at providing financial assistance on reasonable terms :

To the poor and needy to undertake basic education.

To the student/employed persons to pursue higher education

Eligibility

Studies in India :

School education including plus 2 stages.

Graduation courses - B.A., B.Com., B.Sc. etc

Post Graduation courses - Masters & Ph.D.

Professional courses - Engineering, Medical, Agriculture, Veterinary, Law,

Dental, Management, Computer etc.

Computer Certificate course of reputed institutions accredited to

Department of Electronics or Institutions affiliated to University.

Courses like ICWA, CA, CFA, etc.

Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.

Courses offered in India by reputed Foreign Universities.

Evening courses of approved institutions.

Other courses leading to Diploma/Degree etc. conducted by Colleges/Universities

approved by UGC/Govt./AICTE/ICMR etc.

Courses offered by National Institutes and other reputed private institutions. Any other

institution courses depending on future prospects/recognition by user institutions deemed

proper by the Bank.

Studies Abroad:

Graduation: For job oriented professional/technical courses offered by reputed

Universities.

Post Graduation: MCA, MBA, MS. etc.

Courses conducted by Chartered Institute of Management Accountants (CIMA) -

London, Chartered Public Accountant (CPA) - USA etc.


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Students Eligibility


Student should be in the age group of 16 to 40 yrs

Secured admission to Professional/Technical courses through Entrance

Test/Selection Process.

Secured admission to Foreign University/Institutions.

Expenses Considered for Loan

Fee payable to College/School/Hostel.

Examination/Library/Laboratory fee.

Purchase of books/equipments/instruments/uniforms .

Caution deposit/building fund/ refundable deposit.

Travel expenses/passage money for studies abroad. Purchase of computers - essential for completion of the course.

Any other expenses required to complete the course - like study tours, project

work thesis etc.

To meet insurance premium for the policy on the life of the student.

Reimbursement of these expenses already incurred/loan taken from identified sources (to

meet the contingencies) by the applicant on merits is allowed, subject to production of

original receipts within one month if applicant has secured admission in India and within six

weeks if the applicant is going abroad.

Quantum of Finance

Need based finance subject to repaying capacity of the parents/students with margin and

the following ceilings:

Studies in India - Maximum Rs. 7.50 lacs

Studies Abroad - Maximum Rs. 15.00 lacs

Margin

Up to Rs. 4 lacs - No margin

Above Rs. 4 Lakhs In India 5%

Abroad 15%

* Scholarship assistance to be included in margin.

** Margin may be brought-in on year-to-year basis as and when disbursements are

made on a pro-rata basis.


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Security

Up to Rs.4 Lakhs: No security .Only to take co-obligation of either or both

parents/guardian

Above Rs.4 Lakhs and upto Rs 7.50 Lakhs: Collateral in the form ofsatisfacfactory third party guarantee

Above Rs.7.50 Lakhs: Collateral security of suitable value or co-obligation of

parents/ guardians/ third party along with the assignment of future income of

the student for payment of instalments

Interest Rates

As per new rates. For more details visit bank site

Concessions

1% interest concession, if the interest is serviced during study period.

The interest is charged quarterly/monthly on a simple interest basis during

Repayment /Moratorium period.


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IDBI BANK Education loan

Education loans from IDBI Bank aim at providing financial support to deserving / meritoriousstudents for pursuing higher education in India and abroad. With an array of courses to

choose from and easy repayment options, IDBI Bank makes sure you get completefinancial backing.

Courses offered

An instalment based loan for all courses mentioned below:

a.Studies in India:

Graduation courses: BA, B.Com., B.Sc., etc Post Graduation courses: Masters & PhD Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental,

Management, Computer etc Computer certificate courses of reputed institutes accredited to Dept. of Electronics

or institutes affiliated to university Courses like ICWA, CA, CFA etc Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc Courses offered in India by reputed foreign universities Evening courses of approved institutes Other courses leading to diploma / degree etc. conducted by colleges / universities

approved by UGC / Govt. / AICTE/ AIBMS / ICMR etc

Courses offered by National Institutes and other reputed private institutions. Banksmay have the system of appraising other institution courses depending on futureprospects/ recognition by user institutions.

b.Studies abroad:

Graduation: For job oriented professional / technical courses offered by reputeduniversities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA-London, CPA in USA etc.

c.Special Courses

Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc.,approved by Director General of Civil Aviation/Shipping. In case the course ispursued abroad, the competent local aviation/shipping authority should recognize theInstitute.

Loan AmountMaximum loan amount:

Study in India- 10 laths Study Abroad - 20 laths


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Loan Margin:

Upto 4 lac - Nil Above 4 lac - - studies in India - 5% of the total course expenditure - studies

abroad - 15% of the total course expenditure

Expenses Covered under Loan

Fee payable to college / school/ hostel Examination / Library / Laboratory fee Purchase of books / equipments / instruments / uniforms Caution deposit / building fund / refundable deposit supported by Institution bills /

receipts Travel expenses / passage money for studies abroad Purchase of computers - essential for completion of the course Any other expense required to complete the course - like study tours, project work,

thesis, etc. Insurance premium for student borrower

Repayment terms

The repayment of loan to begin after the course period + 1 year or 6 months after gettinga job, whichever is earlier. The loan to be repaid within 5-7 years (maximum tenor 84months) after commencement of repayment.

Rate of Interest

Loan amount Rate of Interest (RoI)

Up to 4 laths 13.25%p.a.(Linked to BR)

Above 4 laths and up to 7.5 laths 13.50%p.a.(Linked to BR)

Above 7.5 laths up to 20 laths 13.00%p.a.(Linked to BR)

Base Rate(BR) = 10.75% (w.e.f. August 01,2011) Base rate subject to change

Simple interest to be charged during repayment holiday and moratorium Accrued interest

during the repayment holiday period should be added to the EMIs.

Where the borrower has not opted for the repayment holiday or is willing to service theinterest during the repayment holiday (for principal) the interest rate should be 1% lowerthan the applicable rate.

50 basis points reduction for girl applicants 50 basis points reduction for physically challenged applicants (subject to submission

of certificate from a medical practitioner) 25 basis points for students of SC/ST/Minority community


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Collateral Security

Up to 4 lacs No security

Above 4 lacs and up to 7.5 lacs Collateral in the form of a third party guarantee

Above 7.5 lacs Collateral security in the form of Land/ building,(The minimum value shall be 1.33 times theamount of loan sought).Govt. securities/ Public Sector Bonds/ Units of

UTI, NSC, KVP, LIC policy, gold, shares/debentures, bank deposit in the name ofparent/ guardian or in the name of the co-applicant (The minimum value shall be 1.1times of the amount of loan sought).

Wherever the land/ building is already mortgaged, the unencumbered portion can be takenas security on IInd charge basis provided it covers the required loan amount. In case theloan is given for purchase of a computer the same to be hypothecated to the Bank.


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Syndicate Bank Education Loan

SyndVidya

A Syndicate Bank's Education Loan Scheme

Syndicate Bank's involvement in education dates back to the decades prior to theNationalisation of Banks. The Bank was also the first to set up a string of Rural TrainingInstitutes aimed at empowering the young India in rural areas through entrepreneurialeducation and training.

Continuing this commitment to education, the Bank has introduced a comprehensiveEducation Loan Scheme-SyndVidya, which is more student responsive and parent friendly.The Scheme covers the entire spectrum of educational needs from the school education to

super speciality courses including overseas courses. The scheme makes available needbased finance to cover expenses related to education such as fees payable to College,Hostel, Examination, Library, Laboratory fees, caution deposit/building fund/refundabledeposit upto 10% of tuition fee, Cost of Books, Equipments, Travel expenses for studiesabroad etc. Only capitation fees, donation or external coaching fee are not covered. Theloan scheme carries liberal limits of Rs.10.00 lac for courses within the country andRs.20.00 lac for overseas courses. The scheme which is attractively priced at the Bank'sprime lending rate and other details are furnished below :

Eligibility Criteria

Any student who is a major representing himself or a minor student representedby parent or guardian of Indian nationality.

Must have secured admission on the basis of merit to professional/technical/other courses through entrance test/selection process.Deviation/relaxation is also permitted under special circumstances.

Must have secured admission to Foreign universities/Institution (for studiesabroad).

a) Studies in India.

Graduation: B.A., B.Com, B.Sc., etc.

Post graduation: Masters & PhD.

Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, DentalManagement, Computer etc. In respect of Management studies, apart fromUniversity affiliation, course should also be approved by All India Council forTechnical Education. For Computer education, the recognised training Instituteshould have accreditation of DOE, Govt of India to conduct the course underDepartment of Electronics Accreditation of Computer Course (DOEACC)Scheme.

Computer certificate courses of reputed institutes accredited to Department of

Electronics or Institutes affiliated to Universities.


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Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.

Courses offered in India by reputed foreign universities.

Evening courses of approved institutes.

Other courses leading to Diploma / Degree etc. conducted by colleges /

universities approved by UGC / Govt./ AICTE / AIBMS / ICMR etc. Courses offered by National Institutes and other reputed private institutions

acceptable to the Bank.

b) Studies abroad.

Graduation: For job oriented professional/technical courses offered by reputeduniversities.

Post Graduation: MCA, MBA, MS. Etc.

Courses conducted by CIMA-London, CPA in USA etc.

Other Foreign Diploma courses are not eligible.

Student Eligibility


Secured admission on the basis of merit to professional/technical coursesthrough Entrance Test/Selection process. Deviations/relaxations are alsopermitted under special circumstances.

Secured admission to foreign university / institutions.

The student who is a major representing himself or a minor student representedby parent or guardian.

Quantum of Loan

Need based finance to meet expenses such as fee payable to college / school /hostel, examination fee, cost of books, travel / passage fare for studies abroadetc.

Capitation fee / donation / external coaching fee are not eligible for finance.

Maximum of Rs.10.00 lac for studies in India and Rs.20 lac for studies abroad.

Margin

For loans upto Rs.4 lac - No Margin required.

For loans above Rs.4 lac - 5% for study in India and 15% for study abroad.

Security

For loans upto Rs.4.00 lac - NIL.

For loans above Rs.4.00 lac and upto Rs.7.50 lac - Collateral in the form of

satisfactory third party guarantee acceptable to the Bank.


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For loans above Rs.7.50 lac - Collateral security with 25% margin covering theloan amount and assignment of future income of the student for payment of loaninstalments.

Interest (PLR presently 13.25%)

For loans upto Rs.4.00 laths - PLR minus 1.50%

For loans above Rs.4.00 laths - PLR minus 1.00%

Girl students and students belonging to SC/ST category are eligible forconcession of 0.50% on the above rates.

Girl students under SC/ST category are eligible for a further concession of 0.25%on the above rates.(Total concession of 0.75%)

Simple interest to be charged during the Repayment holiday/Moratorium period.

Penal interest to be charged as applicable

No processing charges/service charges are levied for educational loans

Repayment

In 5 to 7 years commencing one year after completion of the course or 6 monthsafter securing the job whichever is earlier.

Capability Certificate

Capability certificate for students going abroad for higher studies are also issuedon production of financial and other supporting documents.


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RESEARCH METHODHOLOGY

Research methodology is a methodology for collecting all sorts of information & datapertaining to the subject in question. The objective is to examine all the issues involved &conduct situational analysis. The methodology includes the overall research design,sampling procedure & fieldwork done & finally the analysis procedure. The methodologyused in the study consistent of sample survey using both primary & secondary data. Theprimary data has been collected with the help of questionnaire as well as personalobservation book, magazine; journals have been referred for secondary data. Thequestionnaire has been drafted & presented by the researcher himself.

Steps in Research methodology:

Step 1: Objective of study of Education loanThe first step in this study is the defining the objective of the study and according to thatdevelops the further plan.

Step 2: Developing plan for gathering informationThis stage calls for developing the most efficient plan for gathering the need information.Decide the methods of data collection and the data sources, sampling method and contactmethod. Decide the primary and secouces for collecting the data.

Step 3: collect the information

this is the most important step in the study. This is up to the individuals ability to gather theinformation from the selected samples.

Step 4 : analyze the information

Step 5: Present the findings


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Defining the problem

&

Research objective

Develop research plan

Collect the information

Analaysis of the

information

Present the findings

Make the decision


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Research Design

MANAGEMENT QUESTION: For what course the student taking education loan.

How much amount they generally like to take.

From which bank they generally like to take loan.

The customer are satisfied with services provided & disbursement

What are the criteria, a customer consider while taking education loan.

RESEARCH OBJECTIVE:

1. To identify the factor and its importance in education loan customer prospect.

2. To understand customer preference to selecting bank for education.

3. To understand satisfaction and dissatisfaction level of customer who is already taken

to education loan.

4. To understand general practices to taking education loan and process followed.

Type of Research Design

Descriptive Study:

Descriptive research is also called Statistical Research. The main goal of this type ofresearch is to describe the data and characteristics about what is being studied. The idea

behind this type of research is to study frequencies, averages, and other statistical

calculations. Although this research is highly accurate, it does not gather the causes behind

a situation. Descriptive research is mainly done when a researcher wants to gain a better

understanding of a topic for example, a frozen ready meals company learns that there is a

growing demand for fresh ready meals but doesnt know much about the area of fresh food

and so has to carry out research in order to gain a better understanding. It is quantitative

and uses surveys and panels and also the use of probability sampling.

Descriptive research is the exploration of the existing certain phenomena. The details of the

facts wont be known. The existing phenomenas facts are not known to the persons.

Sample size: 100

95% confidence level

8% confidence interval

Collage going population of Ahemdabad= 5 lac.

Method of sampling:

Convenience sampling


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Contact method Personal interval with the help of questioner

Data collection time 2 May,2012 to 4 May,2012

Data analysis method :-

Simple graph and tables

ANOVA, Chi-Square Average

Correlation, rogation

Research Instrument

Questionnaire

Software used

Excel & Sample size calculator

Sampling Design

The sampling design adopted was convenience and quota of non probabilistic in which we

got filled questionnaire from 56 respondents 50 were from State Bank of Indias customer

and the rest 6 from the customers of other banks. So my sample size would be 56. Eligible

respondents will be adults over the age of 18. The quota that we had taken was on the

basis of the Net Monthly Income of the household and the Amount Sanctioned for the Loan

dividing it equally on both the range.

Questionnaire Formulation

The scaling technique used in the questionnaire was the Non-Comparative Scaling

technique. Under Itemized Rating we used the Likert Scale where weasked the questions

for which the respondents would had to answer on the scale of 1to 5, 1 being strongly

disagree and 5 being strongly agree, and also for the satisfaction level of the customers 1

being totally dissatisfied and 5 being totallysatisfied.

Data Collection

For the complete survey respondents were chosen in such a way that the responses can be

analyzed on each other. I chose respondents mainly from State Bank of India keeping in

mind about the Quota of the Net Monthly Income of the house hold and the Loan amount to

be sanctioned. I conducted a personal interview for the customers who visited the bank and

the maximum number of my responses was taken on an interview over telephone. For the


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responses of the other banks customer I visited other banks and interviewed through

laddering questions about not being a customer of the State Bank of India.

Source of data collection

a. Primary dataPrimary data is a data, which is gather by the researcher himself. This data can be collected

through experiment or through survey. The various method of primary data collection is,

1. Observation Method

2. Interview method

3. Questionnaire method

The method adopted in this study is:

Personal interview through structured questionnaire of existing customers who already

taken a loan from different banks etc, Sample of questionnaire is attached as an annexure

b. Secondary data.

Secondary data refers to the data which have already been collected and analyzed by

someone else usually published data are available in form of,

1. Various publication of central, state and local government.

2. Book magazine and newspapers.

3. Accounting records, sales force reports etc.4. Website of banks.

The method adopted in this study is:

Collecting data from website of various banks, articles given in various sites etc. This

mentioned in the references of the project

Diagrammatic Approach

Data analysis involved converting a serious of recorded observation into descriptionstatement. The analysis will be showed with the help of tables.

Sampling plan

This plan calls for the main three decision for selecting the sample of bank from whole

population of bank in the city.

1. Sample Units

Here I define the target population that will be sampled that is people who taken the

educational loan. Total number of banks working in India are approximately 50.


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2. Sample size

Large sample gives more reliable results than small samples. I have taken 20% of

population of study i.e. 10 units banks are undertaken for study.

3. Data collection procedure

Here, i took all the information needed for the study, by means of personal visits to

banks and by interview. This is the most versatile method. The interviewer can ask more

number of question; can record additional about the respondents.


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Analysis

As per questionnaire and market surveys I have find out different responses from differentpeople. According to their responses I analyze the findings and draw certain remarks.

Gender

male 71

female 29

Total 100

It has been observed that approximately 71% of correspondent respondent are male who

take the education loan and 29 % of female are taken education loan for their completing

their studies.

male

female


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Age

Below 15 0

15 to 20 18

20 to 25 74

25 above 8

Total 100

From the above collected data, it is clear that 74% of the customer for education loan arefall in the age of20- 25. So the Target market for Educational loan provider institute are

Youth.

Below 15

15 to 20

20 to 25

25 above


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Education

HSE 6

UG 22

PG 72Total 100

It is clear that the youth which falling in age group of 20-25, are take loan for their higher

studies, and complete their post gradation. So the institute and bank which provide the

educational loan can tie-up with those educational institute who provide P.G. cources like

M.B.A, M.C.A, M.E, B.E & study abroad.

Education

HSE

UG

PG


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Professional

student 69

Non- Student 31

Total 100

Sample population who willing to take education loan are include 69% of student and 31%are completed the studies but not yet return the loan amount to the bank.

Professional

student

Non- Student


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Name

Axis 12

SBI 31

BOB 10BOI 8

ICICI 5

IDBI 3

HDFC 2

PNB 5

CBI 17

OTHER 7

Total 100

From this survey it is come to know that SBI is most trusted bank and majority of person

have their bank account in SBI Bank. After that CBI, Axis, BOB have established the trust in

their customers mind.

Name

Axis

SBI

BOB

BOI

ICICI

IDBI

HDFC

PNB

CBI


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1. Have you taken a loan for financing your education?

YES 100

NO 0

Total 100

In my sample size all 100% the respondent are taken the education loan.

0

20

40

60

80

100

120

YES NO

Question 1

Series1


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2. What is the amount have you taken in Education loan?

Above 1 lack 1-3 lack 3-5 lack 5-8 lack Above 8 lackAbove 1 lac 6

1-3 Lac 33

3-5 Lac 42

5-8 Lac 10

Above 8 Lac 9

Total 100

Generally people take loan of upto 5 lac. For their education. There are some people who

take loan of more than 5 lac. But in some special condition of styling abroad or for long

duration cources.

0

5

10

15

20

25

30

35

40

45

Above 1 lac 1-3 Lac 3-5 Lac 5-8 Lac Above 8 Lac

Question 2

Series1


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3. For which course have you taken this education loan for?

Other (please mention) _____________________________________

AS 8

B.E 11LLB 2

MBBS 36

MBA 3

MCA 2

ME 1

Msc. 3

PGPGBM 31

OTHERS 3

Total 100

36 respondent take education loan for completing their MBBS and 31 respondent out of 100is taken loan for completing their PGPGBM.

0

5

10

15

20

25

30

35

40

AS

B.E

LLB

MBBS

MBA

MCA

ME

Msc.

PGPGBM

OTHERS

Question 3

Series1


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4. From which bank have you taken this loan?

Please mention__________________________________________

Axis 11

SBI 27

BOB 6

BOI 5

ICICI 4

IDBI 2

HDFC 2

PNB 5

CBI 26

OTHER 12Total 100

According to my sample size 27 of prefer SBI for loan product, but 26 people prefer CBI, Axisbank is prefer by 11 respondent, HDFC or OTHER Bank for loan because they are working withthat bank & it is easier for them to get loan from their bank & it easier for them to pay theinterest because it is less as compare to other bank because they are the employee of thatbank.

0

5

10

15

20

25

30

Axis

SBI

BOB

BOI

ICICI

IDBI

HDFC

PNB

CBI

OTHER

Question 4

Series1


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5. Why you have selected this particular bank?

1=Highly Agree 2=Agree 3=Indifferent 4= Disagree 5=Highly Disagree

1 2 3 4 5

A).No Security required

B).Low Rate of InterestC).Brand name

D).Loan repayment option

E).Less formalities in Documentation

F).Transparent transaction

G).Institute recommendation

H).Behaviour & Method of Treatment by BankStaff

I).Bank Infrastructure & Branches in Hometown

Other _______________________________ (Please Specify)

Descriptive Statistic

A) B) C) D) E) F) G) H) I)

Mean 2.07 2.15 2 2.01 2.19 2.21 2.35 2.19 2.23StandardError 0.11742 0.0998 0.094280 0.09155 0.10317 0.1007 0.11315048 0.11073218 0.09832

Median 2 2 2 2 2 2 2 2 2

Mode 1 2 1 2 2 2 2 2 2StandardDeviation 1.17426 0.998736 0.94280 0.91557 1.0317 1.00799 1.13150476 1.10732182 0.98324SampleVariance 1.37888 0.99747 0.888889 0.83828 1.0645 1.01606 1.28030303 1.22616162 0.9667

Sum 207 215 200 201 219 221 235 219 223

Largest(1) 5 5 4 4 5 5 5 5 5

Smallest(1) 1 1 1 1 1 1 1 1 1Confidence

Level(95.0%) 0.23299 0.198170 0.187073 0.18167 0.20472 0.20000 0.22451509 0.21971667 0.19509

Option A:


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Most of the respondent are agree to given criteria of selecting the bank. They have 2.07 %

agreement on it . varience in their view is very less about 1.37888 at 95% confidence level.

Option B:


agreement on it . varience in their view is very less about 0.99747at 95% confidence level.

Option C:

Most of the respondent are agree to given criteria of selecting the bank. They have 2 %

agreement on it . varience in their view is very less about 0.888889 at 95% confidencelevel.

Option D:



Option E:


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Option F:



Option G:


agreement on it . varience in their view is very less about 1.28030303 at 9