PROJECT REPORT

On
“STUDY ON STUDENTS ATTITUDE TOWARDS
EDUCATIONAL LOAN REPAYMENT”

Submitted for the partial fulfillment of the requirement for the award
of
Batchlor of Business Administration
Session- 2022-2023

Submitted By:

Mahin Jahangeer
Roll No. 562130916

Guided by:

Dinesh Chavan

RAJA BAHADUR VENKAT RAMA REDDY

WOMEN'S COLLEGE

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(OSMANIA UNIVERSITY). Hyderabad, Telangana.

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DECLARATION

The project report entitled “STUDY ON STUDENTS ATTITUDE TOWARDS

EDUCATIONAL LOAN REPAYMENT” Submitted to Raja Bahadur Venkat Rama
Reddy Women's College (Osmania University), Hyderabad in partial fulfilment of the
requirement for the award of the degree of BBA is an original work carried out under the
guidance of Dinesh Chavan. The matter embodied in this project is a genuine work done by
me to the best of my knowledge and belief and has not been submitted before, neither to this
University nor to any other University for the fulfilment of the requirement of any course of
study.

SIGNATURE,

Mahin Jahangeer
Roll No. 562130916

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 ACKNOWLEDGEMENT

Apart from my efforts, the success of my project depends largely on the encouragement and
guideline of many others. I take this opportunity to express my gratitude to the people who
have been instrumental in the successful completion of this project.

I am gratefully indebted to our esteemed guide K. Venkat Ramana Reddy for his sincere
guidance and priceless support which would have been impossible for us to complete this
project.

I express my gratitude to the staff members of Raja Bahadur Venkat Rama Reddy
Women's College (Osmania University), Hyderabad who directly or indirectly helped me.

SIGNATURE,

Mahin Jahangeer
Roll No. 562130916

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 TABLE OF CONTENT

Title page
Declaration
Acknowledgment
Executive summary
1. Introduction
 Education loan
 Overview of education loan industry
 Repayment of education loan
2. Objectives of the study
3. Research methodology
 Research design
 Sample size
 Method of sampling
 Sampling design
 Data collection
4. Data Analysis and Interpretation
5. Findings
6. Limitations of the study
7. Suggestion and Recommendation
8. Annexure
9. Bibliography

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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 student attitude towards
Educational loan repayment.
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.

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 INTRODUCTION

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.

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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.

OBJECTIVES OF THE EDUCATION LOAN

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.

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:

ELIGIBILITY CRITERIA:
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.

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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.
 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***

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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.

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.

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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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.

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 equipment’s/ instruments to the extent possible.

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EDUCATION LOAN | STUDENT LOAN

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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.

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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.

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.

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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

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

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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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OVERVIEW OF EDUCATION LOAN INDUSTRY
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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.

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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

(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.

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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.

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

<Allahabad Bank Education 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.

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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 Services. All Loans require a co-applicant. For co-applicant
eligibility
Savings Account For complete documentation
Click to Know – Fees and Charges

Insurance Protection from HDFC ERGO General Insurance Company Ltd

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)

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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 Charges Upto Rs. 1000/-
Bounce Cheque Charges Upto Rs. 450/- per Bouncing
Legal / incidental charges At actual
Stamp Duty & other statutory charges As per applicable laws of the state

 For studies in India, maximum Rs. 10 laces

Studies abroad, maximum Rs. 20 laces

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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 of Loan Prepayme No Due Solvency Charges Charge Charge
Interest Processi nt Certifica Certifica for Late s for s for
ng Charges te te Payment changi changi
Charges of EMI ng ng
from from
fixed to floating
floating to fixed
rates of rates of
interest interest
13.75% – Nil Nil NA NA Rs 500 + NA NA
15.75% taxes per
*Repayable cheque
in maximum bounce
7 years from and a
the penal
commencem interest
ent of @24%
instalment. per
annum
i.e. @ 2%
per month
on the
overdue
instalment
/s

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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:

The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her role
would be, necessarily, like the primary debtor.

Security:

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

Additional Security:

Assignment of LIC policy in favour of the Bank for the sum assured being at least 100% of the loan
amount. The policy is kept alive during the currency of the loan. To ensure this, the annual premium
may be included in the computation of the loan requirement, along with the tuition fees and other
recurring charges. Further, the future income of the student needs to be assigned in favour of the Bank
for meeting the instalment obligations.

Disbursement:

The loan will be disbursed in full or in suitable instalments taking into account the requirement of
funds and/or fee schedule as assessed by the Bank directly to the educational institution or vendor of
books or equipment or instruments.

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SBI Education Loan
Loan Amount Rate of Interest

Loans upto Rs. 4.00 Lacs 11.25% p.a.

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

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

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

Documents required for SBI Education Loan

 Completed Education Loan Application Form.

 Mark sheets of last qualifying examination
 Proof of admission scholarship, studentship etc
 Schedule of expenses for the specified course
 2 passport size photographs
 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 :

• Should be an Indian national residing in India.

• Student should have secured admission to a recognized school / High school / Jr.
College (including CBSE / ICSE / State Board) for any of the following courses
1. Stage I : Nursery to Vth STD.
2. Stage II : VI th to VIII STD.
3. Stage III : IX th to XII th STD.

Coverage of expenses for :

• Fee payable to college / school.

• Examination / Library / Laboratory Fee.

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 • 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

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.

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 • No Margin on loans upto 4 lacs.
• Free Debit Card.

Courses Eligible :

• All Graduation courses.

• All Post Graduation courses & Doctorate courses.
• Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law,
Dental, Management, Computer, Ayurved, Homeopathy, Physiotherapy, Hotel
Management, Hospital Management, Interior Designing, Architecture, Event
Management, Mass Communication, Fashion Technology, etc.
• Computer certificate courses of reputed institutes accredited to Dept. of
Electronics or institutes affiliated to Universities.
• Courses like C.A, ICWA, CFA, CS, etc.
• Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
• Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc.,
approved by Director General of Civil Aviation/shipping.
• 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.

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 • 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 :

• 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

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 • Rate of Interest :
• Simple interest to be charged at monthly rests during the repayment holiday /
moratorium period.
• 1% interest concession is provided if interest debited during repayment holiday is
serviced.
• 1% Concession in rate of interest to loans for girl student.
• Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds Rs.4.00
lacs.
• For loans above 4 lacs, interest rate will be 2 % above base rate for ISB,
Hyderabad Students which is 2 % less than that for students of other institutes

Baroda Scholar

Bank of Baroda presents financial assistance to students going abroad for Professional /
Technical studies. The loan offering is designed to empower you with the financial capability
to realise your dreams... Achieve your goals... Reach out to the maximum limits...

Eligibility of Courses :

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

by reputed Universities overseas.

Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc. The Institute
should be recognized by the competent local aviation / shipping authority and Director
General of Civil Aviation/shipping in India.

Student Eligibility :

• Should be an Indian National.

• Secured admission to Professional/Technical Courses at foreign
Universities/Institutions.

Coverage of expenses (for overseas studies) :

• Admission/Tuition fees to College/University.

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 • Hostel/Mess charges.
• Examination/Library/Laboratory fee.
• Purchase of books/equipments/instruments.
• Caution deposit/building fund/refundable deposit supported by institution
bills/receipts.
• One way travel expenses/Passage money.
• Purchase of computers if essential for completion of the course.
• Any other expense required to complete the course e.g. study tour, project work,
thesis etc.

Maximum amount of loan: Rs. 20.00 Lacs.

Margin: 15%

Repayment Period :

Repayment Holiday/Moratorium Period :

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

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

Security:

• Upto Rs.4.00/- lacs : No security

• Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable
third
• party guarantee alogn with assignment of future income.
• Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
• amount along with assignment of future income

Rate of Interest:

• Simple interest during repayment holiday/moratorium period.

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

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 • 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.

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

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

Expenses considered for loan :

 Fee payable to college/ school/ hostel

 Hostel expenses (Wherever students have to stay outside the campus or avail private
accommodation banks may consider reasonable lodging & boarding expenses)
 Examination/ Library/ Laboratory fee
 Purchase of books/ equipments/ instruments/ uniforms
 Caution deposit/ building fund/ refundable deposit supported by Institution bills/
receipts
 Travel expenses/ passage money for studies abroad.

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

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 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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 REPAYMENT OF EDUCATION LOAN

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:

For loans upto - 7.5 laths - upto 10 years

For loans above - 7.5 laths - upto 15 years

INSURANCE

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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.

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.

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

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.

OTHER CONDITIONS:

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.

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.

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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 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-in-law.

No Due Certificate
No due certificate will not be insisted upon as a pre-condition for considering education loan.
However, banks may obtain a declaration/ an affidavit confirming that no loans are availed
from other banks.

Disposal of loan application

Loan applications have to be disposed of in the normal course within a period of 15 days to 1
month, but not exceeding the time norms stipulated for disposing of loan applications under
priority sector lending.

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 OBJECTIVES OF THE STUDY

1. To study the student attitude toward repayment of education loan in Delhi NCR
region
2. To identify the factor and its importance in education loan customer prospect.
3. To understand customer preference to selecting bank for education.
4. To understand satisfaction and dissatisfaction level of customer who is already taken
to education loan.
5. To understand general practices to taking education loan and process followed.

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 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 secures 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

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.
 What is the student attitude towards repaying the loan.

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

44 | P a g e
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 collage going population of Delhi NCR region

Method of sampling: Convenience sampling

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 customers of other banks. So my sample size would be 56. Eligible
respondents will be adults over the age of 18. The quota that we had taken was on the basis of
the Net Monthly Income of the household and the Amount Sanctioned for the Loan dividing
it equally on both the range.

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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
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.

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 4. Website of banks.

DATA ANALYSIS AND INTERPRETATION

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.

1. Gender
Gender
male 71
female 29
Total 100

male
female

Interpretation

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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 2. Age

Age
Below 15 0
15 to 20 18
20 to 25 74
25 above 8
Total 100

Below 15
15 to 20
20 to 25
25 above

Interpretation

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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 3. Education

Education
HSE 6
UG 22
PG 72
Total 100

Education
HSE
UG
PG

Interpretation

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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 4. What is your profession?

Professional
student 69
Non- Student 31
Total 100

Professional
student
Non- Student

Interpretation

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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 5. Which bank you have education loan?

Name
Axis 12
SBI 31
BOB 10
BOI 8
ICICI 5
IDBI 3
HDFC 2
PNB 5
CBI 17
OTHER 7
Total 100

Name
Axis
SBI
BOB
BOI
ICICI
IDBI
HDFC
PNB
CBI
OTHER

Interpretation

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

YES 100
NO 0
Total 100

120

100

80

60
Series1
40

20

0
YES NO
Question 1

Interpretation

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

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7. 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 □
Above 1 lac 6
1-3 Lac 33
3-5 Lac 42
5-8 Lac 10
Above 8 Lac 9
Total 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

Interpretation

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
courses.

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

Other (please mention) _____________________________________

AS 8
B.E 11
LLB 2
MBBS 36
MBA 3
MCA 2
ME 1
Msc. 3
PGPGBM 31
OTHERS 3
Total 100

40
35
30
25
20
15
Series1
10
5
0
B.E

ME

Msc.

PGPGBM
LLB
AS

MBBS

OTHERS
MCA
MBA

Question 3

Interpretation

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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9. From which bank have you taken this loan?

Please mention__________________________________________
Axis 11
SBI 27
BOB 6
BOI 5
ICICI 4
IDBI 2
HDFC 2
PNB 5
CBI 26
OTHER 12
Total 100

30

25

20

15

10 Series1

0
SBI

BOI

ICICI

PNB

CBI
Axis

IDBI

OTHER
BOB

HDFC

Question 4

Interpretation

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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10. Why you have selected this particular bank?

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

1 2 3 4 5
A).No Security required
B).Low Rate of 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

Other _______________________________ (Please Specify)

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11. Have you given any security for loan?

Yes □ No □
If yes, please mention_________________________________________

YES 40
NO 60
Total 100

70

60

50

40

30 Series1
20

10

0
YES NO
Question 6

Interpretation

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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12. 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% □

< 9% 11
9 % to 10 % 20
10 % to 11 % 34
11 % to 12 % 31
above 12 % 4
Total 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

Interpretation

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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13. For how many years have you taken this loan for?

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

< 1 year 9
1-5 year 63
5- 10 year 24
10 year 4
Total 100

70

60

50

40

30 Series1

20

10

0
< 1 year 1-5 year 5- 10 year 10 year
Question 8

Interpretation

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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14. Are you satisfied with the following dimension to repayment 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

Interpretation

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.

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15. 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 21
10-20 Days 19
20-30 Days 37
30-40 Days 17
40 Days and Above 6
Total 100

40

35

30

25

20

15 Series1

10

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

Interpretation

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

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16. What % of total fees you got as a disbursement?

40-60% □ 60-80% □ 80% and above □

40- 60 % 22
60 - 80 % 33
80 % and above 45
Total 100

50
45
40
35
30
25
Series1
20
15
10
5
0
40- 60 % 60 - 80 % 80 % and above
Question 11

Interpretation

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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17. 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)

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 Name of Bank Rank
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 Total Rank

ICICI 422 2
Syndicate Bank 583 8
Axis Bank 547 5
HDFC Bank 523 4
Bank of Baroda 489 3
IDBI Bank 619 10
SBI 411 1
CBI 596 9
PNB 650 6
UBI 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
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

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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
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 1 st rank and IDBI is most
unlike bank as it got 10th rank in the given option. ICICI got 2 nd 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 project concerning Educational loan repayment. 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 □ above 20 □

Education: Higher school and below □ Undergraduate □ Post graduate and above □

Professional: Student □ Non- Student □

Do you have Bank Account: Yes □ No □

if yes, please give name of bank______________________________________

_______________________________________________________________

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

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 5
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)

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6. Have you given any security for loan?

Yes □ No □
If yes, please mention__________________________________________

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 5
Rate of interest
Disbursement time part
Customer relationship & complain Management
Process simplicity of taking loan
Completeness of information provided
Charges taken for approval

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 □

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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 Rank

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

*******************************Thank You **********************************

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 BIBLIOGRAPHY

Books:
 Business research methodology, Naresh Malothra
 Kiran Prakashan
 Arihant’s “How to crack Banking Interviews

Magazines
 India Today
 Today’s traveler
 Business Today
News Paper
 Times of India
 Hindustan Times
 Economic Times

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/

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  www.allahabadbank.com/education.asp
 www.rupeetimes.com
 www.credila.com
 www.studyplaces.com/

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