A STUDY OF SIGNIFICANT IMPACT OF EDUCATIONAL LOAN WITH

RESPECT TO STATE BANK OF INDIA WITHIN INDIA

IMPORTANCE OF LOAN SCHEME:-

The project helps in understanding the clear education loan scheme

facility provided by STATE BANK OF INDIA, which explains about
various loan schemes in the Bank.

By the analysis of State Bank of India, we get to know about different

types of loan schemes & importance of loan scheme in today’s
banking sector. To find out various loan scheme of State Bank Of India
& how they are used to solve the problems of customers & to be
profitable to the bank. Research methodology is being used for
collection of primary and secondary data.

OBJECTIVES OF THE STUDY:-

 To study the role, importance and need of the education loan.

 To know the process of educational loan.
 To identify the benefits of educational loan to students.
 To find out the customer response and extent of the educational
loan scheme provided.

SCOPE:-
It was just a month back when Reserve Bank Governor Raghuram Rajan while
answering queries about educational loans explained the role of central bank in
improving the quality of student loans. Despite high level of defaults in
repayment of loans taken by students to pursue higher education the governor
empathises with the students while informing the media about the various
issues and loops in the system of student loans disbursed. Cases of students
defaulting on loan payments prompted Indian Bankers Association to review
the education loan scheme. We explore what this means for students.
"Education loan is becoming popular day by day because of rising fee structure
of higher education. It came into existence in 1995 started by SBI Bank and
after that many banks started offering student loan. The Indian banking sector
began giving education loan from 2001onwards. But recently in the wake of
increasing Non Performing Assets (NPA) on educational loans the Indian
Bankers Association (IBA) has revised the educational loan scheme framed in
2001. Though the situation is far from worrying, banks have been advised to be
prudent and cautious while granting educational loans. For instance
State Level Bankers Committee (SLBC) Chairperson Usha
Ananthasubramanian sent a strong message to banks in Punjab and Haryana
when she told in a committee meeting that, ” The Non Perfoming Assets level is
certainly on the higher side in case of education loan advanced collateral free.
Only the meritorious rather than the deserving candidates should be considered
for granting education loan.”
REVIEW OF LITERATURE:-

RAVI F.H. (1960)`:- He concluded that the pattern of money spended on

the higher education of condition within which something happens of
economic development and suggest that the proportion of such
money is allocated to higher education which was much below the
excepted level of investment and also concluded that under financing
it creates the burden to the government and higher education
authority group.

PILLAI AND NAIR (1962):- He made an attempt to study the history and
problem of educational firm in Kerala State. The study suggested that,
additional public resources should be generated on large scale in
order to finance the continuously rising demand for the educational
level in the State. In 1964-1966, education commission, argued
strongly for allocation of 6% GNP to education sector by taking into
account the numerous parameters like cost of education, teacher-
student ratio, educational requirements of the country and financing
policies adopted in other countries as well.

PANCHAMUKHI (1965):- The study calculated the various components

of private and institutional cost of education, past earnings for males
and females, villages and town pupils separately. It estimated the past
earning which constituted major proportion of total factor cost of
education. The total cost of education was ranging from 5%-6.5% of
national income in 1960-1961.