Education Loan Business research project

“A STUDY OF EXPERIENCES OF CUSTOMER FOR TAKING EDUCATIONAL LOAN 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 (2011’13) 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 all classmates 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...............................................................................................................................2 Acknowledgment....................................................................................................................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.............................................................................................................................12 2.1 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 customer’s perception towards 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 Bank’s Association. The second chapter is the introduction to the Advance Product which gives a brief idea regarding different Education loan product provide by different banks. It also contains the objectives and limitations of the project. The third chapter, methodology adopted in preparing this report is mentioned. Covers the sample procedure, types of data used and the data collection method. The fourth chapter comprehensive coverage of forecasting concepts and techniques which shows the analysis of data through tabulation, computation and graphical representation of data collected from survey. The fifth chapter deals with the findings, suggestion & conclusion part which is very much important after analysis is made. As we know that only analysis and conclusion is not the end of a research, so in the sixth chapter 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 a manner so as to enable the reader to appreciate the contents easily. The report is supported by figures and data wherever necessary with a view to assist the reader in developing a clear cut understanding of the topic. I hope this report will be extremely useful for those it is meant. Constructive and healthy suggestions 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 and professionally 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 6|Page

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. 7|Page



Degree/diploma courses like aeronautical, pilot training, shipping etc provided these are recognized by competent regulatory bodies in India/abroad for the purpose of employment in India/abroad.

4.3 Expenses considered for loan: i. Fee payable to college/ school/ hostel* ii. Examination/ Library/ Laboratory fee iii. Travel expenses/ passage money for studies abroad iv. Insurance premium for student borrower, if applicable v. Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. ** vi. Purchase of books/ equipments/ instruments/ uniforms*** vii. Purchase of computer at reasonable cost, if required for completion of the course*** viii. Any other expense required to complete the course - like study tours, project work, thesis, etc***

5. QUANTUM OF FINANCE: Need based finance to meet the expenses worked out as per para 4.3 above will be considered taking in to account margins as per para 6 subject to the following ceilings: - Studies in India - Maximum upto `.10 laths. - Studies Abroad - Maximum upto `.20 laths.

6. MARGIN: Upto `.4 lacs Nil Above `. 4 lacs Studies in India 5% Studies Abroad 15% - Scholarship/ assistantship 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.

7. SECURITY: Upto 4 laths

Parents to be joint borrower(s) No security Above 4 laths and upto 7.5 laths. Besides the parent(s) executing the documents as joint borrower(s) , collateral security in the form of suitable third party guarantee will be taken. The bank may, at its discretion, in exceptional cases, waive third party guarantee if satisfied with the net-worth / means of parent/s who would be executing the document as joint borrower(s). Above `.7.5 laths Parent(s) to be joint borrower(s) Tangible collateral security of suitable value acceptable to bank, along with the assignment of future income of the student for payment of instalments.

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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: 9|Page

For loans upto - 7.5 laths - upto 10 years For loans above - 7.5 laths - upto 15 years

11. INSURANCE Banks 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 bank’s records. The UID number issued by UIDIA may also be captured in bank’s 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 10 | P a g e

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 Borrower The 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-inlaw.

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 types of 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 hope to 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. 12 | P a g e

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 doctor’s note or some other confirmation of your condition. You’ll 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 Education’s 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 Education Needs – Your school’s 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 13 | P a g e

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 United States 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 you’re 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, since many 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 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. 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 15 | P a g e

(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. We provide 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* for the 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 educational You should be aged between 16 – 35 yrs. institution as Per the Fee Schdule. Insurance Protection from HDFC ERGO Collateral is required for all loans greater than Rs. 7.5 Lakhs. Gateway To Other Banking Products And All Loans require a co-applicant. For coServices. 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, India’s 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 HDFC Education 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 of Upto 4% of the Principal Outstanding repayment) No Due Certificate / No Objection Certificate Nil (NOC) Solvency Certificate Not applicable Charges for late payment of EMI @ 24 % p.a. on amount outstanding from date 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-Schedulement Upto Rs. 1000/Charges 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

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Axis Bank Education Loan

Axis Bank Education Loan – Axis Bank’s Study Power aims to provide financial support 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 Interest

of

13.75% – 15.75% *Repayable in maximum 7 years from the commencemen t of instalment.

Loan Processin g Charges

Prepaymen t Charges

No Due Certificat e

Solvency Certificat e

Charges for Late Payment of EMI

Nil

Nil

NA

NA

Rs 500 + taxes per cheque bounce and a penal interest @24% per annum i.e. @ 2% per month on the overdue instalment/ s

Charges for changin g from fixed to floating rates of interest NA

Charges for changin g from floating to fixed rates of interest NA

Quantum of Loan: The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and Rs 20.00 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 Loans upto Rs. 4.00 Lacs Loans above Rs. 4.00 Lacs and upto Rs. 7.50 Lacs Loans above Rs. 7.50 Lacs

Rate of Interest 11.25% p.a. 12.75% p.a. 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 Borrower’s 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 : • • 1. 2. 3.

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 Stage I : Nursery to Vth STD. Stage II : VI th to VIII STD. 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 23 | P a g e

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 energize your studies and promote education of the youth. • • •

No processing charges. No Margin on loans upto 4 lacs. Free Debit Card.

Courses Eligible : • • •

• • • • 24 | P a g e

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.

• • • •

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, project works, 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 : 25 | P a g e

• • • • • • • • • • • • •

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 Universities/Institutions.

Coverage of expenses (for overseas studies) : • 26 | P a g e

Admission/Tuition fees to College/University.

Courses

at

foreign

• • • •

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: • • • •

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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.

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 parent’s(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 necessary documents, according to UCO Bank Education loan terms and conditions to provide loan as per parent’s 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 Postgraduation studies, which are approved by AICTE/UGC/Government of India. 28 | P a g e

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 2wheeler. 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 to study 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: 29 | P a g e

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 CIMALondon, 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: • • •

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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.

Students Eligibility • • •

Should be an Indian National. Student should be in the age group of 16 to 40 yrs Secured admission to Professional/Technical courses Test/Selection Process. Secured admission to Foreign University/Institutions.

•

through

Entrance

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. 34 | P a g e

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 of satisfacfactory 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 / meritorious students 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 complete financial 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. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.

b. Studies abroad: 

Graduation: For job oriented professional / technical courses offered by reputed universities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMALondon, 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 is pursued abroad, the competent local aviation/shipping authority should recognize the Institute.

Loan Amount Maximum 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 getting a job, whichever is earlier. The loan to be repaid within 5-7 years (maximum tenor 84 months) 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 the interest during the repayment holiday (for principal) the interest rate should be 1% lower than 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 Above 4 lacs and up to Above 7.5 lacs

7.5 lacs

No security Collateral in the form of a third party guarantee Collateral security in the form of Land/ building, (The minimum value shall be 1.33 times the amount of loan sought). Govt. securities/ Public Sector Bonds/ Units of UTI, NSC, KVP, LIC policy, gold, shares/ debentures, bank deposit in the name of parent/ guardian or in the name of the coapplicant (The minimum value shall be 1.1 times of the amount of loan sought).

Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on IInd charge basis provided it covers the required loan amount. In case the loan 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 the Nationalisation of Banks. The Bank was also the first to set up a string of Rural Training Institutes aimed at empowering the young India in rural areas through entrepreneurial education and training. Continuing this commitment to education, the Bank has introduced a comprehensive Education 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 need based finance to cover expenses related to education such as fees payable to College, Hostel, Examination, Library, Laboratory fees, caution deposit/building fund/refundable deposit upto 10% of tuition fee, Cost of Books, Equipments, Travel expenses for studies abroad etc. Only capitation fees, donation or external coaching fee are not covered. The loan scheme carries liberal limits of Rs.10.00 lac for courses within the country and Rs.20.00 lac for overseas courses. The scheme which is attractively priced at the Bank's prime lending rate and other details are furnished below :

Eligibility Criteria   

Any student who is a major representing himself or a minor student represented by 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 studies abroad).

a) Studies in India.   



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Graduation: B.A., B.Com, B.Sc., etc. Post graduation: Masters & PhD. Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental Management, Computer etc. In respect of Management studies, apart from University affiliation, course should also be approved by All India Council for Technical Education. For Computer education, the recognised training Institute should have accreditation of DOE, Govt of India to conduct the course under Department of Electronics Accreditation of Computer Course (DOEACC) Scheme. Computer certificate courses of reputed institutes accredited to Department of Electronics or Institutes affiliated to Universities.

     

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 acceptable to the Bank.

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. Other Foreign Diploma courses are not eligible.

Student Eligibility    

Should be an Indian National. Secured admission on the basis of merit to professional/technical courses through Entrance Test/Selection process. Deviations/relaxations are also permitted under special circumstances. Secured admission to foreign university / institutions. The student who is a major representing himself or a minor student represented by 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 abroad etc. 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  

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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.



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

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 for concession 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 months after securing the job whichever is earlier.

Capability Certificate 

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

RESEARCH METHODHOLOGY Research methodology is a methodology for collecting all sorts of information & data pertaining 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 methodology used in the study consistent of sample survey using both primary & secondary data. The primary data has been collected with the help of questionnaire as well as personal observation book, magazine; journals have been referred for secondary data. The questionnaire has been drafted & presented by the researcher himself.

Steps in Research methodology: Step 1: Objective of study of Education loan The first step in this study is the defining the objective of the study and according to that develops the further plan.

Step 2: Developing plan for gathering information This 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 contact method. 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 individual’s ability to gather the information 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 of research 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 doesn’t 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 won’t be known. The existing phenomena’s 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 44 | P a g e

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 India’s customer and the rest 6 from the customer’s 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 we asked 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 totally satisfied.

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 bank’s 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 data Primary 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 description statement. 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. 46 | P a g e

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 different people. According to their responses I analyze the findings and draw certain remarks.

Gender male female Total

71 29 100

male female

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.

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Age Below 15 15 to 20 20 to 25 25 above Total

0 18 74 8 100

Below 15 15 to 20 20 to 25 25 above

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

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Education HSE UG PG Total

6 22 72 100

Education HSE UG PG

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.

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Professional student Non- Student Total

69 31 100

Professional student Non- Student

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.

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Name Axis SBI BOB BOI ICICI IDBI HDFC PNB CBI OTHER Total

12 31 10 8 5 3 2 5 17 7 100

Name Axis SBI BOB BOI ICICI IDBI HDFC PNB CBI

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.

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1. Have you taken a loan for financing your education? YES NO Total

100 0 100

120 100 80 60 Series1

40 20 0 YES

NO Question 1

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

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2. What is the amount have you taken in Education loan? Above 1 lack

□

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

1-3 lack

□

3-5 lack

□

5-8 lack

□

Above 8 lack

□

6 33 42 10 9 100

45 40 35 30 25 20

Series1

15 10 5 0 Above 1 lac

1-3 Lac

3-5 Lac

5-8 Lac

Above 8 Lac

Question 2

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.

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3. For which course have you taken this education loan for? Other (please mention) _____________________________________ AS B.E LLB MBBS MBA MCA ME Msc. PGPGBM OTHERS Total

8 11 2 36 3 2 1 3 31 3 100

40 35 30 25 20 15 Series1

10 5 OTHERS

PGPGBM

Msc.

ME

MCA

MBA

MBBS

LLB

B.E

AS

0

Question 3

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

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4. From which bank have you taken this loan? Please mention__________________________________________ Axis SBI BOB BOI ICICI IDBI HDFC PNB CBI OTHER Total

11 27 6 5 4 2 2 5 26 12 100

30 25 20 15 10

Series1

5 OTHER

CBI

PNB

HDFC

IDBI

ICICI

BOI

BOB

SBI

Axis

0

Question 4

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

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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 A).No Security required B).Low Rate of Interest C).Brand name D).Loan repayment option E).Less formalities in Documentation F).Transparent transaction G).Institute recommendation H).Behaviour & Method of Treatment by Bank Staff I).Bank Infrastructure & Branches in Hometown

5

Other _______________________________ (Please Specify)

Descriptive Statistic

A) Mean Standard Error

B)

C)

D)

E)

F)

G)

H)

I)

2.07

2.15

2

2.01

2.19

2.21

2.35

2.19

2.23

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 Standard Deviation Sample Variance

1

2

1

2

2

2

2

2

2

1.17426

0.998736

0.94280

0.91557

1.0317

1.00799

1.13150476

1.10732182

0.98324

1.37888

0.99747

0.888889

0.83828

1.0645

1.01606

1.28030303

1.22616162

0.9667

207

215

200

201

219

221

235

219

223

Largest(1)

5

5

4

4

5

5

5

5

5

Smallest(1) Confidence Level(95.0%)

1

1

1

1

1

1

1

1

1

0.23299

0.198170

0.187073

0.18167

0.20472

0.20000

0.22451509

0.21971667

0.19509

Sum

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:

Most of the respondent are agree to given criteria of selecting the bank. They have 2.15 % 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% confidence level.

Option D:

Most of the respondent are agree to given criteria of selecting the bank. They have 2.01 % agreement on it . varience in their view is very less about 0.83828 at 95% confidence level.

Option E: 58 | P a g e

Most of the respondent are agree to given criteria of selecting the bank. They have 2.19 % agreement on it . varience in their view is very less about 1.0645 at 95% confidence level.

Option F:

Most of the respondent are agree to given criteria of selecting the bank. They have 2.35 % agreement on it . varience in their view is very less about 1.01606 at 95% confidence level.

Option G:

Most of the respondent are agree to given criteria of selecting the bank. They have 2.19 % agreement on it . varience in their view is very less about 1.28030303 at 95% confidence level.

Option H:

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Most of the respondent are agree to given criteria of selecting the bank. They have 2.23 % agreement on it . varience in their view is very less about 1.22616162 at 95% confidence level.

Option I

Most of the people said that their preference based on the transparency and the lowest interest rate education loan product. It is also preferred where no security is required and less paper work done as compare to other bank and as their abnk have brand name and having partnership with RBI (Reserve Bank of India) and other association.

Correlation

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

A)

B)

C)

1 0.524956 0.447067 0.337569 0.40577 0.414143 0.407102 0.339242 0.362105

1 0.450546 0.506475 0.530799 0.419904 0.471498 0.467181 0.458248

1 0.397855 0.26998 0.286976 0.321932 0.357988 0.348682

D)

E)

F)

G)

H)

1 0.393598 1 0.555889 0.64111 1 0.415846 0.582725 0.519418 1 0.416558 0.489711 0.452572 0.446223 1 0.468676 0.543942 0.531698 0.399031 0.710933

From the above table we can say that, Behaviour and treatment with customer is highly co related with Bank’s infrastructure

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I)

1

ANOVA ON THE BASIS OF GENDER OPTION A: ANOVA Source of Variation Between Groups Within Groups Total

SS 0.188485

do 1

136.3215 98 136.51 99

MS

F

P-value

F crib

1.39103587 7.39 0.713590623 3.938110878 0.188484701

Ho= Both Male and female preferred no security requirement at the time of taking education loan H 1= Both male and female preferred security requirement at the time of taking education loan HO is rejected X1 = X2

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OPTION B: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

MS

0.05

1

0.05

97.95

96

1.0203125

98

97

F

P-value

F crit

2.04 0.825274681 3.940162523

Ho== Both Male and female preferred low rate of interest while taking loan H 1= Both Male and female preferred high rate of interest while taking loan Conclusion : Ho is accepted X1 = X2

OPTION C: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

MS

0.45

1

85.55

96

86

97

0.45 0.89114583 3

F 1.98

P-value 0.47904821 7

F crit 3.94016252 3

Ho= Both Male and female preferred brand name of that bank form which they are going to take loan H 1= Both Male and female don’t required any brand name Conclusion : Ho is accepted X1 = X2

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OPTION D: ANOVA Source of Variation Between Groups Within Groups

Total

SS 0.33061 2 81.6285 7 81.9591 8

df

MS 0.33061224 5 0.85029761 9

1 96

F 2.58

P-value 0.53439937 8

F crit 3.94016252 3

97

Ho= Both Male and female preferred large time in loan repayment H 1= Both Male and female preferred less time in loan repayment Conclusion : Ho is accepted X1 = X2

OPTION E: ANOVA Source of Variation Between Groups Within Groups Total

SS 0.17244 9 103.878 6 104.051

df

MS 1

96

0.17244898 1.08206845 2

F

P-value 6.35

0.6906241

97

Ho= Both Male and female preferred less documentation formalities H 1= Both Male and female preferred large documentation is trustable Conclusion : Ho is rejected X1 = X2 63 | P a g e

F crit 3.94016252 3

OPTION F: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

0.05 100.45 100.5

MS

F

1 0.05 96 1.046354167

P-value

F crit

20.0 0.827427463 3.940162523

97

Ho= Both Male and female preferred transparent transaction H 1= Both Male and female not preferred transparent transaction Conclusion: Ho is rejected X1 = X2

OPTION G: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

MS

F

1 0.330612245 3.99 0.616273394 3.940162523 96 1.307886905

125.8877551

97

H 1= Both Male and female not preferred institute recommendation Conclusion : Ho accepted

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F crit

0.330612245 125.5571429

Ho= Both Male and female preferred institute recordation

X1 = X2

P-value

OPTION H: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

0.102040816

MS

F

P-value

F crit

1 0.102040816 12.35 0.776808406 3.940162523

121.2142857 96

1.26264881

121.3163265 97

Ho= Both Male and female preferred behaviour of attening customer H 1= Both Male and female not preferred behaviour of attain customer Conclusion : Ho is accepted X1 = X2

OPTION I: ANOVA Source of Variation Between Groups Within Groups

Total

SS 1.04489795 9 92.5571428 6 93.6020408 2

df 1 96

MS 1.04489795 9 0.96413690 5

F 1.08376513 1

P-value 0.30047151 7

97

Ho= Both Male and female preferred good infrastructure of bank H 1= Both Male and female not preferred good infrastructure of bank Conclusion: Ho is accepted X1 = X2 65 | P a g e

F crit 3.94016252 3

ONTHE BAISIS OF EDUCATION: OPTION A: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

0.100562136

MS

F

2 0.050281068 28.4

134.0643863

94 1.426216876

134.1649485

96

P-value

F crit

0.965372117 3.093265919

Ho= all student preferred no security requirement during taking loan H 1= all student not preferred security requirement during taking loan Conclusion: Ho is rejected X1 = X2

OPTION B: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

MS

1.320788

2

0.660393979

95.359624

94

1.01446409

96.680412

96

Ho= all student preferred low rate of interest H 1= all student not preferred low rate of interest Conclusion: Ho is accepted X1 = X2

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F

P-value

F crit

1.53 0.523870295 3.093265919

OPTION C: ANOVA Source of Variation Between Groups Within Groups Total

SS 1.897518 4 84.10248 2 86

df

MS 2 0.948759222

F 1.06041 3

P-value 0.35041838 3

F crit 3.09326591 9

F 3.182116 4

P-value 0.0460042 1

F crit 3.09326591 9

94 0.894707251 96

Ho= all student preferred brand name of their bank H 1= all student preferred brand name of their bank Conclusion : Ho is accepted X1 = X2

OPTION D: ANOVA Source of Variation Between Groups Within Groups Total

SS 5.199731 7 76.80026 8 82

df

MS 2

2.599865862

94

0.817024131

96

Ho= all student preferred large time for repayment of loan H 1= all student preferred less time of repayment of loan Conclusion: Ho is accepted X1 = X2

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OPTION E: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

MS

0.0132092

2

0.006604576

100.6672

94

1.070927694

100.68041

96

F

P-value

F crit

178.33 0.993852226 3.093265919

Ho= all student preferred less documentation formalities H 1= all student preferred large documentation formalities Conclusion: Ho is rejected X1 = X2

OPTION F: ANOVA Source of Variation Between Groups Within Groups Total

SS 2.871314

df

MS

F

94

100.4536

96

1.03811

Ho= all student preferred transparent transaction H 1= all student not preferred transparent transaction

X1 = X2

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F crit

2 1.435657 1.382954 0.255893 3.093266

97.58229

Conclusion: Ho is accepted

P-value

OPTION G: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

MS

1.139195

2 0.569598

121.9536

94 1.297379

123.0928

96

F

P-value

F crit

2.303 0.645972 3.093266

Ho= all student preferred institution recordation H 1= all student not preferred institution recordation Conclusion: Ho is accepted X1 = X2

OPTION H: ANOVA Source of Variation Between Groups Within Groups Total

SS

df

MS

0.220805

2 0.110403

121.0575

94 1.287846

121.2784

96

F

H 1= all student not preferred behaviour with customer

X1 = X2

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F crit

11.63 0.917917 3.093266

Ho= all student preferred behaviour with customer

Conclusion : Ho is rejected

P-value

OPTION I: ANOVA Source of Variation Between Groups Within Groups Total

SS 2.156358

df

MS

F

94 0.981886

94.45361

96

Ho= all student preferred good infrastructure of bank H 1= all student not preferred good infrastructure of bank

X1 = X2

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F crit

2 1.078179 1.09807 0.337753 3.093266

92.29725

Conclusion : Ho is accepted

P-value

Chi – square Test calculate degree of independence Basis of education Option A

Actual Expected (O-E) 4 2.34 1.66 9 8.58 0.42 26 28.08 -2.08 1 2.1 -1.1 6 7.7 -1.7 28 25.2 2.8 0 0.72 -0.72 5 2.64 2.36 7 8.64 -1.64 0 0.48 -0.48 0 1.76 -1.76 8 5.76 2.24 1 0.36 0.64 2 1.32 0.68 3 4.32 -1.32 100 100

(O-E)2 2.7556 0.1764 4.3264 1.21 2.89 7.84 0.5184 5.5696 2.6896 0.2304 3.0976 5.0176 0.4096 0.4624 1.7424

(0-E)2/E 1.177607 0.020559 0.154074 0.57619 0.375325 0.311111 0.72 2.109697 0.311296 0.48 1.76 0.871111 1.137778 0.350303 0.403333 10.75839

Ho =The amount of agreement with respect to no security required is independent of education H1 = The amount of agreement with respect of no security required is dependent of education Conclusion : Ho is accepted Degree of freedom : 8 % confidence level: 95% Table value: 15.57

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Option B: Actual Expected (O-E) 2 1.56 0.44 3 5.72 -2.72 21 18.72 2.28 2 2.82 -0.82 12 10.34 1.66 33 33.84 -0.84 1 0.96 0.04 5 3.52 1.48 10 11.52 -1.52 1 0.48 0.52 1 1.76 -0.76 6 5.76 0.24 0 0.18 -0.18 1 0.66 0.34 2 2.16 -0.16 100 100

(O-E)2 0.1936 7.3984 5.1984 0.6724 2.7556 0.7056 0.0016 2.1904 2.3104 0.2704 0.5776 0.0576 0.0324 0.1156 0.0256

(0-E)2/E 0.124103 1.293427 0.277692 0.23844 0.266499 0.020851 0.001667 0.622273 0.200556 0.563333 0.328182 0.01 0.18 0.175152 0.011852 4.314025

Ho =The amount of agreement with respect to Low rate of interest is independent of education H1 = The amount of agreement with respect of Low rate of interest is dependent of education Conclusion : Ho is accepted Degree of freedom : 8 % confidence level: 95% Table value: 15.57

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Option c: Actual Expected (O-E) 3 2.22 0.78 7 8.14 -1.14 27 26.64 0.36 1 1.98 -0.98 6 7.26 -1.26 26 23.76 2.24 1 1.38 -0.38 6 5.06 0.94 16 16.56 -0.56 1 0.42 0.58 3 1.54 1.46 3 5.04 -2.04 0 0 0 0 0 0 0 0 0 100 100

(O-E)2 0.6084 1.2996 0.1296 0.9604 1.5876 5.0176 0.1444 0.8836 0.3136 0.3364 2.1316 4.1616 0 0 0

(0-E)2/E 0.274054 0.159656 0.004865 0.485051 0.218678 0.211178 0.104638 0.174625 0.018937 0.800952 1.384156 0.825714 #DIV/0! #DIV/0! #DIV/0! 5.4683

Ho =The amount of agreement with respect to Brand name is independent of education H1 = The amount of agreement with respect of Brand name is dependent of education Conclusion : Ho is accepted Degree of freedom : 8 % confidence level: 95% Table value: 15.57

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Option D Actual Expected (O-E) (O-E)2 3 1.98 1.02 1.0404 4 7.26 -3.26 10.6276 26 23.76 2.24 5.0176 3 2.46 0.54 0.2916 9 9.02 -0.02 0.0004 29 29.52 -0.52 0.2704 0 1.08 -1.08 1.1664 5 3.96 1.04 1.0816 13 12.96 0.04 0.0016 0 0.48 -0.48 0.2304 4 1.76 2.24 5.0176 4 5.76 -1.76 3.0976 0 0 0 0 0 0 0 0 0 0 0 0 100 100

(0-E)2/E 0.525455 1.463857 0.211178 0.118537 4.43E-05 0.00916 1.08 0.273131 0.000123 0.48 2.850909 0.537778 #DIV/0! #DIV/0! #DIV/0! 11.5

Ho =The amount of agreement with respect to Loan repayment option is independent of education H1 = The amount of agreement with respect of Loan repayment option is dependent of education Conclusion : Ho is accepted Degree of freedom : 8 % 95% confidence level: Table value: 15.57

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Option E: Actual Expected (O-E) 2 1.56 0.44 6 5.72 0.28 18 18.72 -0.72 1 2.64 -1.64 9 9.68 -0.68 34 31.68 2.32 2 1.14 0.86 4 4.18 -0.18 13 13.68 -0.68 1 0.42 0.58 2 1.54 0.46 4 5.04 -1.04 0 0.24 -0.24 1 0.88 0.12 3 2.88 0.12 100 100

(O-E)2 0.1936 0.0784 0.5184 2.6896 0.4624 5.3824 0.7396 0.0324 0.4624 0.3364 0.2116 1.0816 0.0576 0.0144 0.0144

(0-E)2/E 0.124103 0.013706 0.027692 1.018788 0.047769 0.169899 0.648772 0.007751 0.033801 0.800952 0.137403 0.214603 0.24 0.016364 0.005 3.506603

Ho =The amount of agreement with respect to Less formalities in Documentation is independent of education H1 = The amount of agreement with respect of Less formalities in Documentation is dependent of education Conclusion : Ho is accepted Degree of freedom : 8 % 95% confidence level: Table value: 15.57

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Option f: Actual Expected (O-E) 2 1.56 0.44 5 5.72 -0.72 19 18.72 0.28 4 2.4 1.6 7 8.8 -1.8 29 28.8 0.2 0 1.44 -1.44 7 5.28 1.72 17 17.28 -0.28 0 0.42 -0.42 2 1.54 0.46 5 5.04 -0.04 0 0.18 -0.18 1 0.66 0.34 2 2.16 -0.16 100 100

(O-E)2 0.1936 0.5184 0.0784 2.56 3.24 0.04 2.0736 2.9584 0.0784 0.1764 0.2116 0.0016 0.0324 0.1156 0.0256

(0-E)2/E 0.124103 0.090629 0.004188 1.066667 0.368182 0.001389 1.44 0.560303 0.004537 0.42 0.137403 0.000317 0.18 0.175152 0.011852 4.584721

Ho =The amount of agreement with respect to Transparent transaction is independent of education H1 = The amount of agreement with respect of Transparent transaction is dependent of education Conclusion : Ho is accepted Degree of freedom : 8 % 95% confidence level: Table value: 15.57

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Option g: Actual Expected (O-E) 2 1.62 0.38 4 5.94 -1.94 21 19.44 1.56 1 1.86 -0.86 6 6.82 -0.82 24 22.32 1.68 2 1.62 0.38 8 5.94 2.06 17 19.44 -2.44 1 0.6 0.4 3 2.2 0.8 6 7.2 -1.2 0 0.3 -0.3 1 1.1 -0.1 4 3.6 0.4 100 100

(O-E)2 0.1444 3.7636 2.4336 0.7396 0.6724 2.8224 0.1444 4.2436 5.9536 0.16 0.64 1.44 0.09 0.01 0.16

(0-E)2/E 0.089136 0.633603 0.125185 0.397634 0.098592 0.126452 0.089136 0.714411 0.306255 0.266667 0.290909 0.2 0.3 0.009091 0.044444 3.691515

Ho =The amount of agreement with respect to Institute recommendation is independent of education H1 = The amount of agreement with respect of Institute recommendation is dependent of education Conclusion : Ho is accepted Degree of freedom : 8 % 95% confidence level: Table value: 15.57

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Option h: Actual Expected (O-E) (O-E)2 0 1.74 -1.74 3.0276 4 6.38 -2.38 5.6644 25 20.88 4.12 16.9744 5 2.52 2.48 6.1504 11 9.24 1.76 3.0976 26 30.24 -4.24 17.9776 1 0.9 0.1 0.01 5 3.3 1.7 2.89 9 10.8 -1.8 3.24 0 0.54 -0.54 0.2916 1 1.98 -0.98 0.9604 8 6.48 1.52 2.3104 0 0.3 -0.3 0.09 1 1.1 -0.1 0.01 4 3.6 0.4 0.16 100 100

(0-E)2/E 1.74 0.887837 0.81295 2.440635 0.335238 0.594497 0.011111 0.875758 0.3 0.54 0.485051 0.356543 0.3 0.009091 0.044444 9.733155

Ho =The amount of agreement with respect to Behaviour & Method of Treatment by Bank Staff is independent of education H1 = The amount of agreement with respect of Behaviour & Method of Treatment by Bank Staff is dependent of education Conclusion : Ho is accepted Degree of freedom : 8 % 95% confidence level: Table value: 15.57

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Option i: Actual Expected (O-E) 0 1.38 -1.38 4 5.06 -1.06 19 16.56 2.44 4 2.58 1.42 6 9.46 -3.46 33 30.96 2.04 2 1.56 0.44 10 5.72 4.28 14 18.72 -4.72 0 0.24 -0.24 1 0.88 0.12 3 2.88 0.12 0 0.24 -0.24 1 0.88 0.12 3 2.88 0.12 100 100

(O-E)2 1.9044 1.1236 5.9536 2.0164 11.9716 4.1616 0.1936 18.3184 22.2784 0.0576 0.0144 0.0144 0.0576 0.0144 0.0144

(0-E)2/E 1.38 0.222055 0.359517 0.78155 1.265497 0.134419 0.124103 3.202517 1.190085 0.24 0.016364 0.005 0.24 0.016364 0.005 9.182471

Ho =The amount of agreement with respect to Bank Infrastructure & Branches in Hometown is independent of education H1 = The amount of agreement with respect of Bank Infrastructure & Branches in Hometown is dependent of education Conclusion : Ho is accepted Degree of freedom : 8 % 95% confidence level: Table value: 15.57

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6. Have you given any security for loan? Yes □

No

□

If yes, please mention_________________________________________

YES NO Total

40 60 100

70 60 50 40 30

Series1

20 10 0 YES

NO Question 6

From above graph it is clearly shown that 40 respondent take loan on giving the security but they take the loan of above 5 lac and majority of respondent who take loan below 4 lac is without security

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7. What is the rate of interest at which you taken this education loan? <9%

□

< 9% 9 % to 10 % 10 % to 11 % 11 % to 12 % above 12 % Total

9% to 10%

□

10% to 11%

□

11% to 12%

□

above 12%

□

11 20 34 31 4 100

40 35 30 25 20 15

Series1

10 5 0 < 9%

9 % to 10 % 10 % to 11 11 % to 12 above 12 % % % Question 7

34% respondent take loan on 10 to 11 % and some of them are also taken loan on the floating rate of interest.

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8. For how many years have you taken this loan for? < 1 Year

□ 1 – 5 Year □ 5 – 10 Year □ 10 Years □

< 1 year 1-5 year 5- 10 year 10 year Total

9 63 24 4 100

70 60 50 40 30

Series1

20 10 0 < 1 year

1-5 year

5- 10 year

10 year

Question 8

As the most of the respondent are student or those how just completed their studied. So in this recession scenario the need time period of 1- 5 yare to repay the amount of loan to the bank.

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9. Are you satisfied with the following dimension of education loan provided to you by your bank? 1=Highly Satisfied 2=Satisfied 3= Neutral 4= Dissatisfied 5=Highly Dissatisfied 1 2 3 4 5 A).Rate of interest B).Disbursement time part C).Customer relationship & complain Management D).Process simplicity of taking loan E).Completeness of information provided F).Charges taken for approval

Descriptive Statistic: A) Mean Standard Error Median Mode Standard Deviation Sample Variance Sum Largest(1) Smallest(1) Confidence Level (95.0%)

Option A:

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B)

C)

D)

E)

F)

2.13 1.98 1.92 1.98 1.99 2.23 0.096038 0.084063 0.09711 0.103455 0.106832 0.1071721 2 2 2 2 2 2 2 2 1 2 1 2 0.960377 0.840635 0.971097 1.034555 1.068323 1.07172098 0.922323 0.706667 0.94303 1.070303 1.141313 1.14858586 213 198 192 198 199 223 5 5 5 5 5 5 1 1 1 1 1 1 0.19056 0.1668 0.192687 0.205278 0.211978 0.21265269

Most of the people said that their preference based on Charges taken for approval their mean is 2.23, variation is 4 and the lowest interest rate education loan product with mean 2.19 . It is also preferred where Disbursement time part is less and Process simplicity of taking loan done as compare to other bank and as their bank have brand name and having partnership with RBI (Reserve Bank of India) and other association. The variation in their thought are maximum on the disbursement time part.

Correlation:

A) A) B) c) D) E) F)

B)

c)

D)

E)

1 0.528744 1 0.455327 0.233118 1 0.490633 0.44089 0.66197 1 0.552606 0.494664 0.641825 0.712676 1 0.451537 0.487265 0.415786 0.468813 0.575477

F)

1

From The above table, we can observed that the information provided by bank regarding the education loan and charges on approval are correlated.

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10. What is the time bank had taken for Processing & disbursing the loan amount? 0-10 days

□ 10-20 days □ 20-30 days □ 30-40 days □ 40 days and above □

0-10 Days 10-20 Days 20-30 Days 30-40 Days 40 Days and Above Total

21 19 37 17 6 100

40 35 30 25 20 15

Series1

10 5 0 0-10 Days

10-20 Days 20-30 Days 30-40 Days 40 Days and Above Question 10

It is observed that sample want 20-30 days time for disbursement and approval of their loan amount.

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11. What % of total fees you got as a disbursement? 40-60%

□ 60-80% □ 80% and above □

40- 60 % 60 - 80 % 80 % and above Total

22 33 45 100

50 45 40 35 30 25 20

Series1

15 10 5 0 40- 60 %

60 - 80 %

80 % and above

Question 11

It is observed that maximum population wants that their 80% of loan amount is paid by loan taken through bank. Because it is provided on no security required.

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12.Rank the following bank that you trust the most on the basis of your preference for education loan (1 Highly Trust Worthy, 10 Low Trust Worthy) Name of Bank ICICI Bank Syndicate Bank Axis Bank HDFC bank Bank of Baroda IDBI Bank State Bank of India Central Bank of India Punjab national Bank Union Bank of India

Name ICICI Syndicate Bank Axis Bank HDFC Bank Bank of Baroda IDBI Bank SBI CBI PNB UBI

Rank

Total Rank 422 2 583 8 547 5 523 4 489 3 619 10 411 1 596 9 650 6 664 7

From the rank given by my sample , it is come to know that SBI is most preferred bank as it got 1st rank and IDBI is most unlike bank as it got 10th rank in the given option. ICICI got 2nd rank and it is pressed by bank of Baroda, Hdfc and Axix bank is generally preferred by high class people. PNB is having tie up by other educational institute for giving salary and educational loan and payment of fee. CBI is only preferred by those people who want to take educational loan at lowest interest rate and lowest amount of security required.

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Findings and Interpretation

1. In my sample size all 100% the respondent are taken the education loan. 2. Generally people take loan of up to 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 courses. 3. 36 respondent take education loan for completing their MBBS and 31 respondent out of 100 is taken loan for completing their PGPGBM. 4. According to my sample size 27 of prefer SBI for loan product, but 26 people prefer CBI, Axis bank is prefer by 11 respondent, HDFC or OTHER Bank for loan because they are working with that bank & it is easier for them to get loan from their bank & it easier for them to pay the interest because it is less as compare to other bank because they are the employee of that bank. 5. Most of the people said that their preference based on the transparency and the lowest interest rate education loan product. It is also preferred where no security is required and less paper work done as compare to other bank and as their abnk have brand name and having partnership with RBI (Reserve Bank of India) and other association. 6. Behaviour and treatment with customer is highly co related with Bank’s infrastructure 7. Both male and female and student preferred no security requirement, low rate of interest, brand name of their bank. 8. They want large time in repayment of loan. 9. They required less document formalities. 10. They need transparency in their transaction 11. They didn’t required good infrastructure. 12. The amount of agreement with respect to no security required is independent of education 13. The amount of agreement with respect to Low rate of interest is independent of education 14. The amount of agreement with respect to Brand name is independent of education 15. The amount of agreement with respect to Loan repayment option is independent of education 16. The amount of agreement with respect to Less formalities in Documentation is independent of education 17. The amount of agreement with respect to Transparent transaction is independent of education 18. The amount of agreement with respect to Institute recommendation is independent of education 19. The amount of agreement with respect to Behaviour & Method of Treatment by Bank Staff is independent of education 20. The amount of agreement with respect to Bank Infrastructure & Branches in Hometown is independent of education 88 | P a g e

21. 40 respondent take loan on giving the security but they take the loan of above 5 lac and majority of respondent who take loan below 4 lac is without security 22. 34% respondent takes loan on 10 to 11 % and some of them are also taken loan on the floating rate of interest. 23. As the most of the respondent are student or those how just completed their studied. So in this recession scenario the need time period of 1- 5 yare to repay the amount of loan to the bank. 24. Most of the people said that their preference based on Charges taken for approval their mean is 2.23, variation is 4 and the lowest interest rate education loan product with mean 2.19 . It is also preferred where Disbursement time part is less and Process simplicity of taking loan done as compare to other bank and as their bank have brand name and having partnership with RBI (Reserve Bank of India) and other association. The variation in their thought is maximum on the disbursement time part. 25. we can observed that the information provided by bank regarding the education loan and charges on approval are correlated 26. It is observed that sample want 20-30 days time for disbursement and approval of their loan amount.

27. It is observed that maximum population wants that their 80% of loan amount is paid by loan taken through bank. Because it is provided on no security required. 28. It is come to know that SBI is most preferred bank as it got 1st rank and IDBI is most unlike bank as it got 10th rank in the given option. ICICI got 2nd rank and it is pressed by Bank of Baroda, Hdfc and Axix bank is generally preferred by high class people. PNB is having tie up by other educational institute for giving salary and educational loan and payment of fee. CBI is only preferred by those people who want to take educational loan at lowest interest rate and lowest amount of security required.

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LIMITATION OF THE STUDY

      

It is a small research, which may be insufficient to give the real picture scope of the retail loans in India. The research is based on observation and data collected from the internet and also direct interview of bankers. The method of result is also limited to the reliability of method of investigations, measurement and analysis of data. People were not interested in replying to the interview properly. Loan scheme has been revised very soon. So the study is effective till December, 2012. Education loan is provided for some special customers. It is not possible for every customer to get educational loans. All the suggestions are up to my knowledge and the study conducted by me by visiting various websites, research papers and direct interview to banks.

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SUGGESTION AND RECOMMANDATION



    

Interest rate, procession fees, tenure, security and margin money all these are important in all kind of education loan. So bank should revise all above keeping in view of other bank. Bank should appoint some marketing executive for this purpose who can give information of market and other banks, revision of loan timely so that the bank can revise it very soon. Limit of the loan amount of all retail loans should keep increasing keeping in view of private sector banks and other nationalized banks. One of the major strengths of Bank is timely processing of loan application. So, it must keep on processing the loan application as soon s possible. In education loan, CBI is major competitor of SBI in the northern part of India. Bank must adopt new methodology for recovering balance. Bank needs to identify and select the sector in which the funds are invested in large and long time period such as Education loan.

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ANNEXURE QUESTIONNAIRE

______________________________________ I am conducting a research project concerning Educational loan. Your opinion will be very helpful to me .I assure you that the survey data is only for academic research and won’t be used for any commercial purpose. If you have ever taken any Educational loan, then please read the following question carefully and tick the option that you consider correct and appropriate. Thanks for your cooperation.

___________________________________________ Personal Information: Name:___________________________________________________________________ E-mail Address:___________________________________________________ Phone no.:_______________________________________________________ Gender: Male

□

Female

Age: Below 15

□

15-20

□

□

20- 25

□

Education: Higher school and below Professional: Student

□

above 20

□ Undergraduate □ Post graduate and above □

Non- Student

Do you have Bank Account: Yes

□

□

□

No

□

if yes, please give name of bank______________________________________

_______________________________________________________________ 1. Have you taken a loan for financing your education? 92 | P a g e

Yes

□

No

□

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 lack

□

3. For which course have you taken this education loan for? Other (please mention) _____________________________________

4. From which bank have you taken this loan? Please mention__________________________________________ 5. Why you have selected this particular bank? 1=Highly Agree 2=Agree 3=Indifferent 4= Disagree 5=Highly Disagree 1 2 3 4 No Security required Low Rate of Interest Brand name Loan repayment option Less formalities in Documentation Transparent transaction Institute recommendation Behaviour & Method of Treatment by Bank Staff Bank Infrastructure & Branches in Hometown

Other _______________________________ (Please Specify)

6. Have you given any security for loan? Yes

□

No

□

If yes, please mention__________________________________________ 93 | P a g e

5

7. What is the rate of interest at which you taken this education loan? <9%

□

9% to 10%

□

10% to 11%

□

11% to 12%

□

above 12%

□

8. For how many years have you taken this loan for? < 1 Year

□

1 – 5 Year

□

5 – 10 Year

□ 10 Years □

9 . Are you satisfied with the following dimension of education loan provided to you by your bank? 1=Highly Satisfied 2=Satisfied 3= Neutral 4= Dissatisfied 5=Highly Dissatisfied 1 2 3 4 Rate of interest Disbursement time part Customer relationship & complain Management Process simplicity of taking loan Completeness of information provided Charges taken for approval

5

10. What is the time bank had taken for Processing & disbursing the loan amount? 0-10 days

□ 10-20 days □

20-30 days

□

30-40 days

□

40 days and above

□

11. What % of total fees you got as a disbursement? 40-60%

□ 60-80% □ 80% and above □

12.Rank the following bank that you trust the most on the basis of your preference for education loan (1 Highly Trust Worthy, 10 Low Trust Worthy) Name of Bank ICICI Bank Syndicate Bank Axis Bank HDFC bank Bank of Baroda IDBI Bank 94 | P a g e

Rank

State Bank of India Central Bank of India Punjab national Bank Union Bank of India

*******************************Thank

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You **********************************

REFERENCES: Website:                 

http://www.deal4loans.com/ www.icicibank.com/ www.bankofbaroda.com/ www.bankofindia.com/homepage1.aspx www.axisbank.com/ www.sbi.co.in/ www.syndicatebank.in/ www.unionbankofindia.co.in/ www.ucobank.com/ www.hdfcbank.com/ www.pnbindia.in/ www.iba.org.in/ www.rbi.org.in/ www.allahabadbank.com/education.asp www.rupeetimes.com www.credila.com www.studyplaces.com/

Books: Business research methodology, Naresh Malothra

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