Beruflich Dokumente
Kultur Dokumente
ON
EDUCATIONAL LOANS
FROM
PUBLIC SECTOR BANK
Submitted in partial fulfillment for the award of Degree
of
MASTER OF BUSINESS ADMINISTRATION
From OSMANIA UNIVERSITY
INTRODUCTION
5.
6.
7.
8.
9.
10.
The loan disbursement process takes about a week and since the
loan amount will be disbursed directly to the institute, it may be a
good idea to check whether the disbursement is taking place on
time.
Checklist of documents
Proof of Admission
Loan agreement (with parents)
Residence Proof
Age Proof
Proof of parents' income (salary statements, IT returns etc.)
Student's resume showing past academic records
Indicative list.
B) Studies Abroad:
i)
ii)
iii)
Usually, the courses financed should be for durations of more than a year
i.e. 12months.
The
courses
must
be
recognised
by
the
University Grants Commission (UGC) or the All India Council for Technical
Education (AICTE) or else the courses should be from institutes recognised
as 'reputed' by the bank. A detailed list of courses is available in the RBI
circular dated May 4, 2001
URL
http://www.education.nic.in/htmlweb/circulars/eduloan.htm#banks. Many
reputed institutes make loan facility and information easily accessible and
available through Loan helpdesks set up on the campus itself. Institutes
are also striving to maintain a high academic standard so that they enter
the bank's 'reputed institutes' list.
SALLIE MAE
When the Higher Education Act was enacted in 1965, there was no private
market for student loans. Students presented an unknown quantity to
lenders because they did not have assets to secure a loan (like a house,
for example), but rather an uncertain but likely increase in long term
earnings potential. For this reason the federal government created and
financed the Student Loan Marketing Association (SLMA or Sallie Mae) in
1972, as a "government sponsored enterprise" or GSE. GSEs are a hybrid
form of a corporation that uses privately-provided capital to increase
investment in a specific sector of the economy.* Congress also authorized
the creation of state-chartered guaranty agencies, which are discussed
below, to manage the student loan guarantee program under the
supervision of the U.S. Department of Education. Sallie Mae was created
to encourage private banks to loan to students who were considered to be
a credit risk; it did not make the loans itself. For many years, Sallie Mae
Functioned as a "secondary lender," buying and managing loans from
banks and other lenders, which used the proceeds to make new loans.
This role, of freeing up more capital for private funding for student loans,
was the reason that Congress created Sallie Mae.
Sallie Mae received valuable benefits as a GSE, including exemption from
state and local taxes, and access to low-cost funds from the U.S.
Department of the Treasury. Sallie Mae paid only a fraction of a percent in
interest on the funds it borrowed from the U.S. Treasury...earningsfrom
interest payments made by students and subsidies paid by the federal
government on student loanswere also tied to the Treasury bill rates.
Therefore, if interest rates were up Sallie Mae paid more to the Treasury
for its funds, but got even more back in subsidies.an easy path to
profits.
In 1997, Sallie Mae began privatizing its operations. In 2004, Congress
terminated its federal charter and it became a private company. In that
time, its stock price increased by nearly 2,000 percent. The company is
the country's largest originator of federally insured student loans and
provides debt management services and technical and business products
to colleges, universities and loan guarantors. Sallie Mae has the ability to
control the entire loan processmaking loans, guaranteeing them and
collecting on them. Sallie Mae has an estimated 12,000 employees in 19
states and manages $142 billion in student loans. The company's loans
comprised 27 percent of all federal student lending in 2006, four percent
$12,980
$9,380
$10,000
$6,970
$5,000
$1,570 $1,960
$2,470
$3,460
$3,990
$4,950
$0
YEAR
Table 4
Undergraduate student loans ,2013-2014
Institution type
% who took out a federal
%who took out a private
student loan
student loan
Public 4 year
42.8%
5.1%
Private non-profit 4
year
Public 2 year
54.4%
11.5%
11.3%
1.4%
80.2%
14.9%
2.
3.
4.
COMPANY PROFILE
ORGANIZATION:
% of total
Rural
284
28.00
Semi-Urban
308
31.00
Urban
224
22.00
Metro
185
19.00
INDUSTRIAL
PROFILES
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Indore
Bank of Karnataka
Bank of Maharashtra
Bank of Rajasthan
Canara Bank
Catholic Syrian Bank
Central Bank
Dena Bank
Development Credit Bank
Federal Bank
HDFC Bank
IDBI
Indian Bank
Mysore Bank
Oriental Bank
Overseas Bank
Punjab and Sind Bank
Punjab National Bank
State Bank of Hyderabad
State Bank of India
State Bank of Mysore
State Bank of Saurashtra
ALLAHABAD BANK
Allahabad Bank, the oldest joint stock bank of the nation was established
in the year 1865. It is a nationalized bank and offers various kinds of
financial services including Education loan to its customers. The education
loan scheme offered by the Allahabad Bank was launched to provide
financial assistance to meritorious students on reasonable terms. Scroll
down the page to know more about Allahabad Bank Education Loan.
Eligibility Criteria for Allahabad Bank Education Loan
a) Eligibility Criteria for Students
Education Abroad
Quantum of Loan
The maximum amount given as loan for studies in India is Rs. 10 lacs. Rs.
20 lacs is the maximum amount for studies abroad.
Expenses to be considered for Loan
website : http://www.allahabadbank.com/
ANDHRA BANK
Andhra Bank offers education loan to meritorious students, who wish to
pursue higher education either in India or abroad. This bank was founded
by Dr. Bhogaraju Pattabhi Sitaramayya. Registered on 20th November,
1923, it started operations from 28th November, 1923 with a capital of
Rs.1 lacs and an authorized capital of Rs.10 lacs. Browse through this
page to collect more information on Andhra Bank education loans, also
known as Dr. Pattabhi Vidya Jyothi (education loan).
Eligibility of the Candidates
Candidates applying for education loans need to fulfill certain eligibility
criteria as specified by the Andhra Bank.
Studies in India
Candidates should be within 12-30 years of age.
Studies AbroadCandidates applying for Dr. Pattabhi Vidya Jyothi education loan should be
within 18-35 years of age
Quantum of Loan
For studies in India the maximum amount of Andhra Bank Student Loan
offered is Rs.10 lacs. Candidates applying for education loan to study
abroad can get a maximum amount of Rs.20 lacs.
Expenses Covered by the Andhra Bank Education Loan
The education loan covers tuition fee, examination fee, expense of study
tours, hostel charges, cost of books and refundable deposits. The travel
expenses and passage money are also included in the loan.
Margin
There is no margin for loans up to Rs.4 lacs. For loans above Rs.4 lacs the
margin stated is 5% and 15% for India and abroad respectively.
Security
Parents need to act as guarantor for Andhra Bank education loan amount
up to Rs. 4 lacs. For loans up to Rs.7.50 lacs, guarantee of the parents is
essential. Both collateral security and guarantee by parent are required
for education loans above Rs. 7.50.
web site :
http://andhrabank.in/
BANK OF BARODA
Bank of Baroda offers education loan to students willing to continue their
higher education in India or abroad. The various loan options provided by
Bank of Baroda are Baroda Vidya, Baroda Gyan and Baroda Scholar. Scroll
down the page to learn more about Bank of Baroda education loan.
BARODA VIDYA
It is an education loan scheme offered to the parents of students
undergoing school education. These loans are provided for studies
between Nursery and 12th standard. Processing and documentation
charges, margin and security are not required for taking loans under this
scheme. However, the candidates are required to meet certain criteria for
getting the loans. He or she has to be an India national who resides in
India. Students are required to take admission in a recognized school, high
school or junior school. The maximum loan amount offered is Rs. 4 lacs.
BARODA GYAN
It is a loan scheme specially meant for the students pursuing
undergraduate, postgraduate, professional and other type of courses in
India.
Eligible Courses
Programs that are offered by XLRI, IIM, NIFT, IISC, IIT, diploma and
degree courses and ICWA, CA, CS, CFA other courses.
BANK OF INDIA
Bank of India has Star Educational Loan on offer for the students willing to
pursue higher education. Meritorious students are offered Bank of India
Education Loan so that they can study a graduate, computer certificate,
diploma, postgraduate, specialized or professional course in India or
abroad.
Courses:
Bank of India Education Loan is offered for studying several kinds of
programs.
You can apply for an educational loan from Bank of India if you want
to pursue a graduate, postgraduate and doctoral program.
Eligibility:
In addition, the student should assign his future income for paying
the installments.
Repayment procedure:
The loan can be repaid in 5 to 7 years after the repayment is
commenced. The moratorium period is considered till 6 months after
employment or the period of study plus 1 year, whichever is earlier.
Web: http://www.bankofindia.com
BANK OF MAHARASTRA
Bank of Maharashtra offers several finance schemes and credit facilities to
its customers. Students who want to pursue higher studies in India and
abroad, can avail of the Education Loan Scheme of Bank of Maharashtra.
As the history goes, this bank began its operation in 1936 and was
nationalized in 1969. You can scroll through this page to gather
information on Bank of Maharashtra Education Loan.
Courses:
Various courses are considered eligible for Student Loan of Bank of
Maharashtra.
You can apply for this loan for your school education in India.
Eligibility:
Student Loan of Bank of Maharashtra is sanctioned to those candidates,
who are Indian Nationals. You can also apply if you get admission to a
professional or technical program through selection procedure or entrance
test. An applicant will also be considered eligible if he gets admission to a
foreign institute.
Amount of Loan, Margin & Security:
The maximum amount of loan sanctioned by Bank of Maharashtra for
studying in India and abroad is Rs 10 lacs and 20 lacs respectively. There
is a margin of 5% and 15% on a loan amount above Rs 4 lacs.
Security needs to be submitted by a borrower applying for a loan amount
above Rs 4 lacs. The securities can be submitted in the form of one
category or in combinations.
Repayment:
The repayment holiday covers 1 year after completing the course or 6
months after getting a job. Once you start repaying the student loan, you
can complete repayment in 5 years.
Expenses taken into Consideration:
Education Loan Scheme of Bank of Maharashtra covers cost of books,
instruments and other equipments, travel expenses, tuition fees and other
costs related to completing the course.
Web: http:// bankofmaharashtra.in
CANARA BANK
Canara Bank offers a diverse range of personal banking services as well as
priority credit schemes suiting the customized needs of an individual. It
also has education loan known as Vidyasagar Loan, on offer for
meritorious students willing to pursue higher studies in India or abroad.
Canara Bank was established by Ammembal Subba Rao Pai, a renowned
philanthropist at a port in Mangalore, Karnataka in 1906 and nationalized
in 1969. You can gather information on Canara Bank Student Loans from
this page.
Courses:
A graduate course or postgraduate program including employmentoriented technical or professional course in India is eligible for the student
loan of Canara Bank. All these courses should be offered by colleges or
universities approved by UGC, AICTE, IMC and government or other
reputed institutes in India.
Canara Bank education loan is given to both the student and his
guardian jointly and the future income of the student is pledged for
paying the installments.
When the loan amount exceeds Rs 7.5 lacs, you can submit a
collateral security equal to the full amount of the loan.
Repayment:
The borrower can begin repaying one year after completing the course or
6 months after getting the job, whichever happens earlier.
The loan amount as well as the interest is to be repaid in 5 to 7 years of
time.
Web: http://www.canarabank.com
CENTRAL BANK
There are several banks which offer education loans in India. The
education loan offered by Central Bank of India is also known as Cent
Vidyarthi Loan. It is offered to meritorious students willing to pursue their
higher education in India or abroad. Central Bank of India established in
the year 1911 was regarded as the first commercial bank of India entirely
managed and owned by Indians. Being the first Swadeshi Bank of India, it
was nationalized in the year 1969. In order to know more about Central
Bank student loans, scroll down the page.
Candidate's Eligibility
Candidates applying for the education loan need to satisfy certain
eligibility criteria as specified by the bank.
Students applying for the Central bank of India student loan are
considered eligible if they get admission to various professional or
technical courses through merit based selection process or entrance
examination.
IIM, NIFT, XLRI, IIT offered courses, reputed regular diploma and
degree courses, evening courses and courses that are conducted by
foreign universities in India.
Studies Abroad
The loan amount covers hostel charges, examination fees, laboratory and
library fee, building fund, caution deposit, refundable deposit and other
expenses. The education loan also covers the travel expenses of the
students traveling abroad for education.
Quantum of Finance
The maximum amount of loan offered is Rs.7.50 lacs and Rs.15 lacs for
studies in India and abroad respectively.
Margin
There is no margin for education loans up to Rs.4 lacs. For loans above Rs.
4 lacs the margin is 5% and 15% respectively for India and abroad.
Security
Various types of securities are charged for the students willing to take
education loan of Central Bank of India.
Education loan up to Rs.4 lacs- co-obligation security.
Education loan more than Rs.4 lacs and up to Rs.7.50 lacs-Collateral
security
Education loan more than Rs.7.50 lacs-collateral security or co-obligation
of any of the following-parents, guardians and third party.
Web: http://www.centralbankofindia.co.in
DENA BANK
Dena Bank offers educational loans to meritorious students who aspire for
the best of higher education in India and abroad. The education loan
offered by this bank is also known as the Dena Vidya Laxmi educational
loan. Dena Bank was established by the family of Devkaran Nanjee on
26th May, 1938. The bank aims at providing premier financial services to
its customers. It was nationalized in the year 1969 along with thirteen
other banks in India. If you wish to know more about student loans from
Dena Bank, then scroll down the page.
Candidate's Eligibility
Candidates who have applied for Dena Bank education loan need to meet
certain eligibility criteria.
Web: http://www.federalbank.co.in
HDFC BANK
Housing Development Finance Corporation Limited or HDFC Bank started
its operations in the year 1995 as a scheduled commercial bank. It is one
of the Indian banks, which offer education loans to students willing to
pursue higher education in India or abroad. Scroll down the page to learn
more about HDFC Bank education loans.
Candidates Eligibility Required for Education Loan
Candidates willing to apply for HDFC Bank education loan should be Indian
Nationals. Applicants should be between 16-35 years of age. Collateral
security is essential for loans above Rs. 7.5 lacs. A co-applicant is required
if you are applying for full time courses.
Eligible Courses
The eligible courses for HDFC student loan are undergraduate and
postgraduate courses in the fields of management, engineering, medicine,
computer applications, fine arts and designing, hotel and hospitality,
architecture and pure science.
The other courses eligible for loans are distance learning programs, air
hostess training courses, SAP, GNIIT and ERP. The institutes should be
recognized by competent government body or even by AICTE.
Features and Benefits offered by HDFC Bank
Tenure of seven years is available for the loans and the customers
also get tax benefit.
The entire procedure is hassle free and approvals are given at the
earliest.
Candidates may also fill and submit the online application form
available. The representatives of the bank get in touch with the
applicants as soon as possible.
The loan also covers travel expenses for studying abroad, essential
articles required for completing the course and other educational
costs.
Web: http://www.hdfcbank.com
IDBI BANK
It is great that you want to opt for education loan in order to pursue higher
studies. There are several banks in India, which offer education loans to
meritorious students willing to study higher education in India or abroad.
Even IDBI Bank provides financial assistance to deserving candidates. If
you to know more about education loans from IDBI, scroll down the page
Courses Eligible for IDBI Education Loans
There are plenty of courses considered eligible for IDBI Student Loan and
the easy repayment options make the loan scheme attractive among the
students.
Studies in India
Studies Abroad
Quantum of Loan
The maximum amount of education loan offered for studies in India is
Rs.10 lacs and for studies abroad it is Rs. 20 lacs.
Web: http://www.idbi.com
INDIAN BANK
With the boom in banking sector in the recent past, several banks offer
education loans in India these days. Indian Bank is no exception and offer
education loans to students interested to pursue education in India or
abroad. Gather information on learning loans: Indian Bank from this page
and pursue your dream education.
Course:
Indian Bank learning loan is offered for a number of courses.
You can apply for the education loan of Indian Bank if you want to
pursue a graduate, diploma or post graduate program.
Eligibility:
Learning Loans are offered by Indian Bank to only Indian Nationals. The
applicant should get admission to a professional or vocational course
through a selection procedure based on merit or entrance test. The
student will be considered eligible for studying in India if aged 15 to 30
years. A student should be aged between 18 to 35 years, if applying for
studies abroad.
Expenses taken into account:
The educational loan covers insurance premium for the student as well as
caution deposit, refundable deposit or building fund up to 10%. The
educational cost of the course including travel expense, cost of essential
purchases and fee of college, hostel, school and exam are taken into
consideration.
Amount of Loan and Repayment:
You can borrow an education loan of maximum Rs 10 lacs for studying in
India whereas a maximum amount of Rs 20 lacs can be borrowed for
studying in abroad. The amount may increase in special cases.
For loans above Rs 4 lacs taken for studying in India and abroad,
there is a margin of 5% and 15% respectively. The loan can be
repaid in 5 to 7 years.
If you borrow a loan of above Rs 4 lacs, then you should provide the
bank with a guarantee of a 3rd party.
If the amount borrowed is more than Rs 7.5 lacs, then the coobligation of parents or guardian of the student along with a
collateral security need to be guaranteed.
The future income of the student also needs to be assigned for paying the
installments.
Web: http://www.indian-bank.com
Security
No collateral security is required for education loans up to Rs.4 lacs but
co-obligation of guardian or parents is essential. For loans above Rs. 4lacs
and up to Rs. 7.50 lacs no collateral security is required for approval.
However, co-obligation of either parents or guardians and one third party
guarantee is required for the loan. For loans more than Rs.7.50 lacs,
mortgage of immovable property or other security (tangible) is required.
Margin
There is no margin for education loans up to Rs.4 lacs. For education loans
above Rs.4 lacs, 5% and 15% are the margins stated for India and abroad
respectively.
Repayment
The education loans from Oriental Bank of Commerce should be returned
within 84 EMIs. The repayment commences either after six months of
getting a job or after one year completion of the course, whichever, seems
to be earlier.
Web: https://www.obcindia.co.in
Indian Overseas Bank student loan is also provided for technical and
professional courses, regular diploma and degree courses as well as
courses conducted by reputed foreign universities in India.
Quantum of Loan
A maximum of Rs.10 lacs is provided for studying in India and Rs.20 lacs
for education abroad.
Margin
For Indian Overseas Bank Student Loan up to Rs.4 lacs there is no margin.
However, the margin is 5% and 15% for loans more than Rs. 4 lacs in case
of education in India and abroad respectively.
Security
Indian Overseas Bank charges various securities for issuing education
loans under Vidya Jothi Scheme.
For loans more than Rs.4 lacs and up to Rs.7.50 lacs- collateral
security and Co-obligation of parents are needed.
For loans more than Rs.7.50 lacs, you need to submit tangible
collateral security and ensure co obligation of parents.
Eligibility:
PNB has laid down a set of eligibility criteria for sanctioning the education
loans.
A student applying for a graduate program can also get the loan if
he obtains at least pass marks in the qualifying exam.
If the amount is above Rs 7.5 lacs, the bank asks for a collateral
security or guarantee of a 3rd party.
Mode of repayment:
You can repay the principal sum and the interest in a time period of 5 to 7
years after you begin repaying. In case, a student fails to complete his
study in the stipulated time period, he will be given an extended time of 2
years in maximum for completing the program.
Web: www.pnbindia.com
State Bank of Hyderabad Student Loans are offered for several kinds of
academic programs in India and abroad.
A student can also apply for this loan if he plans to study graduate,
postgraduate and doctoral programs in India.
Eligibility:
Only an Indian national can apply for an education loan from State Bank
of Hyderabad. The student also should have been admitted to a vocational
or professional course on the basis of a selection procedure or entrance
test. You will also be considered eligible if you get admission to a foreign
institute.
Repayment:
The student loan obtained from State Bank of Hyderabad can be repaid in
a time period of 5 to 7 years after repayment is begun.
Web: http://www.sbhyd.com
higher studies. SBI Study Loans are sanctioned only to Indian Nationals. A
study loan is sanctioned for studies both in India and abroad.
Courses Eligible for Education Loans:
A candidate, who applies for a program with prospects of employment,
can apply for the loan. Whether you apply for a graduate, professional or
postgraduate program or any other course sanctioned by UGC, AICTE or
the government, you will be considered eligible for the loan.
Expenses taken into account:
The student loan covers school, college or hostel fees as well as cost
for buying books and other necessary items.
Apart from the library, exam or library fees, even caution deposit,
refundable deposit and building fund are considered for the loan.
If you borrow a loan amount above Rs 7.5 lacs, you need to offer a
material collateral security and assign the future income of the
student for paying installments.
The borrower can begin repaying 6 months after getting job or one year
after the course is completed, whichever happens earlier. The loan can be
repaid in a period of 5 to 7 years.
Education Loan for ISM students:
Education loans are also offered to the students of ISB. An ISB student can
borrow upto 95% of costs. There is also a margin of 5% on the loan
amount, which needs to be repaid in 7 years. For detailed information on
this loan scheme for ISB students, you can contact the branch at
Hyderabad University Campus Branch.
Web: http://www.sbi.co.in
UCO BANK
Since its inception in 1943, UCO has offered several kinds of banking
services to its customers. Apart from 2000 Service Units across India, it
also deals in Foreign Exchange operations. For meritorious students
aspiring to pursue studies in India or abroad, the bank also offers
education loans. If you want to apply for Education Loans from UCO Bank,
you can go through our site and gather relevant information on the same.
However, if a student applies for a loan, the parents will be considered as
co-borrowers with their dependant ward.
Courses:
UCO Bank Student Loans can be obtained by students applying for several
kinds of academic programs.
You can apply for the education loan for school education or even
graduate, postgraduate, doctoral or professional programs.
You can also apply for the loan for studying specialized courses like
ICWA, CFA or CA.
You can apply for UCO Bank education loan even for courses like
MBA, MCA and those of CPA in the US and CIMA-London in abroad.
Amount of loan:
UCO Bank sanctions a loan of maximum Rs 7.5 lacs and Rs 15 lacs for
studying in India and abroad respectively.
Repayment:
A borrower can repay the loan in 5 to 7 years after he begins repaying.
Web: http://www.ucobank.com/
Candidates who want to pursue courses like CA, CFA, ICWA may
apply for United Bank of India student loan.
Amount of Loan
Candidates applying for the loan should be Indian nationals and need to
secure admission through entrance test or a selection procedure in
renowned institutions and universities. The maximum amount of loan
granted for study in India is Rs. 7.5 lacs. Students willing to study abroad
can get education loan up to Rs.15 lacs. There is no margin up to Rs.4
lacs. For a loan amount above Rs 4 lakh, 5% and 15% are the margins for
Inland studies and studies abroad respectively.
Repayment of Education Loan
The time given for repayment of education loans is five to seven years.
The repayment commences either six months after one gets employed or
one year after the completion of the course whichever seems to be earlier.
Security for Education Loan
Security is required from candidates for
Loan above Rs.4 lacs and up to Rs.5.40 lacs- Third party suitable
guarantee is required.
Web: http://www.unitedbankofindia.com
VIJAYA BANK
Vijaya Bank is one of the reputed banks that offer educational loans in
India. The main objective of the bank is to provide top quality financial
services to its customers. It was established by late Shri. A.B.Shetty with
other enterprising farmers on 23rd October, 1931 and became a
nationalized bank on 15th April, 1980.
Vijaya Bank education loan is offered to the deserving students willing to
pursue their higher education in India and abroad. Scroll down the page to
learn more about Students Loans from Vijaya Bank.
Candidate's Eligibility
Students, who are Indian national, are eligible to apply for the loan.
Students need to take admission to relevant technical or professional
courses through entrance examination or a merit based selection process.
Courses Eligible for Vijaya Bank Student Loan
a.
Studies in India
b.
The education loan helps the students to pay their college, hostel,
examination, library and laboratory fees.
Loan above Rs.4 lacs to Rs.7.50 lacs -Guarantee of third part (both
India and abroad)
Loan above Rs. 7.50 lacs to Rs.10 lacs(India) and Rs.15 lacs
(Abroad)-collateral security.
Repayment of Loan
India:
Abroad:
Five to seven years is the time stated for loans up to Rs.15 lacs.
Candidates taking loans above Rs.15 lacs should pay back the sum within
a time of five to ten years.
Web: http://www.vijayabank.com
VYSYA BANK
On this page, we have tried to list all the major information on education
loan provided by Vysya Bank. However, if you encounter any discrepancy
in the information about Vysya Bank Student loans, do write to us. We
welcome any kind of feedback that would improve the quality of the site,
a site that strives to provide the best information on Vysya Bank Study
Loans.
Introduction: The Vysya Bank was established in 1930, at Bangalore by
few eminent visionaries who wanted to provide banking facilities to the
underprivileged. In 1948 Vysya Bank achieved the status of a "scheduled"
bank. Over time, Vysya Bank grew in stature to become the largest
private sector bank in 1985. Presently the bank has a network of over 300
branches spread all over India. In October 2002, the bank amalgamated
with a leading global financial organization of Dutch origin named ING.
Since then the erstwhile Vysya Bank Limited is being known as ING Vysya
Bank Limited. ING Vysya provides educational loans to meritorious
students for assisting them in their pursuit of higher studies whether in
India or abroad. For availing the facility of study loan provided by the ING
Vysya bank, a candidate needs to provide certain documents.
The past academic records, approval for admission to the desired course,
proof of address, proof of income and a brief introduction about the
candidate needs to be submitted for the application of educational loan.
Amount of Loan:
The amounts of loan provided by the ING Vysya Bank vary with the types
of courses to be pursued. However the amount that is lent by the bank
can be broadly divided into two categories. The details are:
For studies Abroad - The loan amount for pursuing higher studies
abroad can at most be Rs. 15 Lacs.
Rate of Interest:
The rates of interest of educational loans provided by ING Vysya Bank can
vary from time to time. The present rate of interest is as follows:
Tenures:
The tenure for repayment depends on the course length.
Repayment:
Repayment of loan commences after the completion of the course.
The educational loans provided by the ING Vysya Bank (erstwhile Vysya
Bank Limited) offers an amount of money which is equivalent to most
other national banks. The security conditions are also not very stringent.
Being a private sector bank having global exposure the banking
operations are faster compared to many other banks. These facilities may
prove advantageous for students who opt for educational loans from ING
Vysya banks.
Web: www.ingvysyabank.com
Lender
Up to 400k
401k - 700k
Above 700k
11.25%
11.00%
11.00%
10.75%
12.50%
12.50%
10.00%
12.00%
12.00%
9.50%
10.00%
10.00%
10.25%
11.00%
11.00%
11.25%
12.25%
12.25%
10.00%
10.00%
10.00%
11.50%
13.00%
13.00%
9.00%
12.00%
12.00%
15.00%
16.00%
16.00%
14.25%
15.25%
15.25%
11.25%
11.75%
11.75%
10.25%
11.50%
11.50%
9.75%
10.75%
10.75%
11.50%
11.50%
11.50%
9.75%
10.50%
10.50%
12.50%
13.00%
13.00%
10.50%
11.25%
11.25%
14.00%
14.00%
14.00%
11.25%
12.75%
12.75%
10.00%
10.00%
10.00%
11.25%
11.75%
11.75%
9.50%
10.25%
10.25%
10.25%
11.00%
11.00%
10.75%
12.25%
10.75%
METHODOLOGY
METHODOLOGY
Research Technique:
There are two basic measurements techniques used is marketing
research.
(1) Questionnaires
Questionnaires:
A questionnaire is formal sets of questions prepared to collect the
information. In this project we had made an effective questionnaire by
collecting different questionnaires and had a brain storming session for
preparing final and effective questionnaires.
Sample:
A sample is a subset of a unit subset of a unit or population collected as a
representation of it.
Sample Unit:
The customer or visitors who visit State Bank of Hyderabad bank are the
sample unit.
Sample size:
The customer or visitors who visit State Bank of Hyderabad with whom I
interact will be the sample size.
Research Design:
Research design was adopted for the purpose of analyzing the data which
was aimed to combined relevant data along with the economic
infrastructure and time in mind. It was the concept of zonal structure with
in which research is conducted. The research was conducted over a period
of 60days.
Research tool:
Before developing a questionnaire, a pilot study was conducted to elicit
the general standards of Students Loan Scheme being followed. This data
was collected after a considerable search and study on the internet on
relevant protocols on the topic Education Loans from Public Sector Banks.
Thus, relevant questionnaire was developed.
Data collection Primary Source:
The primary data related to the study have to be collecting through the
internet, books and magazines.
Secondary source:
Data is also gathered from the secondary sources like reports, journals,
internet (company's web site) and publications of Banks/Government in
India.
Tools for Analysis and Interpretation
The responses of all the questions are summed up from all the answered
questionnaires. These summed up responses is calculate to derive the
percentages to make the interpretations more meaningful, being
represent in the form of a bar-diagram.
PERIOD OF THE STUDY
> This sample may not represent different demographic the segments of
the market.
$1,298
$1,200
$1,102
$960
$1,000
$800
$574
$600
$400
$1,377
$642
$694
$401
$200
$0
ACCESS
Chart 2
Sources of Financial Aid in California
2013-14
18%
1%
10%
71%
tuition for 30 years. However after World War I: people started to think of
a college education as a vehicle for economic and social mobility rather
than an activity reserved for the rich. Many colleges and universities took
advantage of this increase in demand to increase prices.
College attendance increased 84 percent in the 1920s, primarily due to
the growth of state-supported institutions that charged low, if any, tuition.
By 1929, 69 state land grant colleges and universities had been
established in the U.S., of which only two were privately supported (the
Massachusetts Institute of Technology and Cornell). College attendance
further increased during the 1930s and really took off after World War II as
a result of the GI Bill (The Serviceman's Readjustment Act of 1944), which
supported about 4.4 million veterans going to college. Limited
opportunities for work-study offered the primary means of financial aid for
needy students at that time.
The concept of student financial need as a basis for the award of
scholarships was endorsed by the President's Commission on Higher
Education in 1947, but it was not until 1958, with the launch of Sputnik by
the Soviet Union, that Congress created the National Defense Education
Act and the National Defense Student Loan Program, the first generally
available student aid program. With the enactment of the landmark
Higher Education Act of 1965 (Title IV), the federal government became
more involved in providing financial assistance to college students.
33%
30%
37%
% of Instutions
Twenty years ago, maximum Pell Grants met nearly 60 percent of total
charges in that sector. One result is that Pell Grant recipients have much
higher debt levels than other students. According to the Project on
Student Debt, 88.5 percent of Pell Grant recipients who received a
Bachelors degree in 2004 had student loans, compared to 52.7 percent of
non- Pell recipients.
H.R. 2669, the College Cost Reduction and Access Act, September 2007,
raises the maximum Pell Grant to $5,400 over five years ($4,800 in 200810, $5,000 in 2009-10 and $5,400 in 2011-12). The funding is classified as
"mandatory spending," which means the increases will be funded. The Act
also increases the amount of income that students can keep for living
expenses before reducing student aid, excludes the Earned Income Tax
Credit from financial aid calculations, and increases excluded family
income from $20,000 to $30,000, among other changes. New grants of
$4,000 are available for Teacher Candidates.
A related federal student aid grant program, the Academic
Competitiveness Grant (ACG), became available for students with Pell
Grants meeting specified grade point average and course requirements in
the academic year 2006-07. First-year full-time undergraduate students
could receive up to $750, as of 2007, and second-year undergraduate
students could receive up to $1,300 if they maintained a 3.0 grade
average during their first year. In the first year of the program, 400,000
students received awards averaging $850.46 The National Science and
Mathematics Access to Retain Talent Grant also became available for the
first time in academic year 2006-07, for third and fourth year full-time
undergraduate students with Pell Grants majoring in mathematics,
science, technology, engineering, or a critical foreign language. They may
receive up to $4,000 per year. In its first year, the program awarded
grants averaging $3,875 to 80,000 students.47
Federally Subsidized and Guaranteed Student Loans
Federally subsidized and guaranteed student loans are an important
source of student financial aid. In 2003-04, three-quarters of all student
loans were federally subsidized and guaranteed loans, and one quarter
$2,009
$2,000
$1,500
$1,000
In $ Millions
$1,390
$981
$759 $821
$735 $875
$500
$114
$943
$304
loans
grants
$0
government pays the interest while the student is in school and subsidizes
the interest throughout the life of the loan. About 41 percent of federal
education loans are subsidized Stafford Loans.
These loans are financed in one of two ways: the Federal Family Education
Loan Program (FFEL), in which the loan is made by a private lending
institution, or the William D. Ford Federal Direct Loan Program (Direct
Loan), in which a loan is made by and repaid to the federal Department of
Education and consequently costs the government less.
The two types of loan compete against each other in the postsecondary
institution lending market, as institutions generally participate in one or
the other. In 2005, for example, The University of California offered the
Direct Loan program on six campuses and the FFEL guaranteed loan
program on four campuses. That year over 80,000 U.C. students received
loans through federal programs.53 Thirteen California State University
campuses participate in the FFEL program, and ten in direct lending.
If a school participates in the FFEL, it generally has a list of preferred
lenders that it provides to students. Students do not have to borrow from
lenders on the list but they usually do because the college has often
negotiated lower fees from those lenders (however preferred lender lists
have lead to some abuse, as discussed below). Over 3,000 lenders
participate in the FFEL program. Three quarters of postsecondary schools
participated in the FFEL in 2005, compared to 25 percent in the Direct
Loan Program. According to Congressional testimony by a representative
of the University of California, "...borrowers and institutions in the Direct
Loan program are not receiving enough of the federal subsidy to offer
realistic level playing-field competition to the FFEL program," for the
following reasons:
Federal direct loan limits have not kept pace with the cost of
attending postsecondary education, meaning that students have an
increasing need to borrow additional funds. More advantageous
private loan terms are available through schools that already have
relationships with lenders through the FFEL.
Under the FFEL program, some borrowers can receive lower cost
loans because certain lenders share their federal subsidies with the
schools. This flexibility is a central element in "enrollment
management," in which financial aid becomes a key recruitment tool
for universities and colleges. The federal government guarantees
subsidized Stafford Loans against default and pays interest while a
student is in school. The amount a student may borrow depends on
the student's financial need, but as of 2007 is limited to $3,500 for
the first year, $4,500 for the second year, and $5,500 for the last
two years of study, or a total of $13,500. The subsidized Stafford
Loan has a grace period of six months after leaving school before
the student must begin repaying the loan.
The newly enacted College Cost Reduction and Access Act reduces
interest rates on new undergraduate subsidized Stafford FFEL and Federal
Direct Loans from 6.8 percent to 6 percent starting July 2008, 5.6 percent
starting July 2009, 4.5 percent starting July 2010, and 3.4 percent starting
July 2011. In July 2012, the interest rate will revert back to 6.8 percent.
In addition to interest and principal, students must pay a fee of up to four
percent of the loan to help defray the cost of a Stafford Loan. For a
subsidized FFEL Stafford Loan, a portion of the fee payment goes to the
federal government and a portion goes to the guaranty agency (the state
agency that administers the program in each state). In California, the
Student Aid Commission is the state's designated guaranty agency, and
Ed Fund is its auxiliary. For Direct Stafford Loans, the entire fee goes to the
federal government. In addition, there are lucrative collection costs and
fees for late payments. 55
According to an analysis of 1999-2000 data, California undergraduate
students were less likely to received federally subsidized Stafford Loans
the state ranked 46th among states in the number of subsidized loan
recipients, with only 16.3 percent of California students receiving the
loans compared to 23.1 percent of the nation's undergraduates.56 Why
this is the case is not clear, given the large number of postsecondary
students in California and their level of financial need.
Unsubsidized Stafford Loans
Since the subsidized Stafford Loan limit is less than the cost of attendance
at most four year institutions of higher education, many students also take
out unsubsidized Stafford Loans, which are not based on financial need.
Unsubsidized Stafford Loans are made by private lending institutions.
Repayment is guaranteed by the federal government, Allowing for lower
interest rates due to the decreased risk to the lender. Federal law sets the
maximum interest rates and fees that lenders may charge.
Borrowers are charged interest from the time the loan is disbursed until it
is paid in full. Students are responsible for all interest costs, and those
interest costs are higher6.8bpercentthan on subsidized Stafford Loans.
Once the student ends enrollment, any unpaid interest is added to the
principal amount of the loan.This means that loan obligations may
balloon, as interest is due on the new principal. A borrower who chooses
to pay the interest as it accumulates will repay less in the long run.
Chart 5
Federal Guaranteed Loans (Stafford and PLUS) Made in Calfornia, by Educational Sector, 2013-14
COMMUNITY COLLEGES; 2%
UC; 15%
CSU; 17%
INDEPENDENT; 45%
PROPRIETARY; 21%
Table 2
Campus-based Federal Student Aid Programs Federal Fiscal Year 2004
Program
Federal
Appropriation
# Students
Served
Federal Supplemental
Educational Opportunity
Grant
$770.5 million
$975 million
1.3 million
Federal Work-Study
$998.5 million
$1.2 billion
858,000
$165.4 million
$1.3 billion
673,000
Source: James B. Stcdman. The Higher Education Act: Reauthorization Status and
Issues, Congressional Research Service. 2004.
Tax Credits
The primary focus of the Higher Education Act of 1965 was on assisting
students from needy families, most of whom would not have benefited
from a tax credit. Over the years, however, various proposals for tax
credits were considered by Congress. In 1997 Congress enacted the
Taxpayer Relief Act, creating the Hope Scholarship Credit ($1,500 tax
credit) for each of the first two years of higher education and the Lifetime
Learning Credit ($1,000 tax credit) for the remaining years. In addition,
interest payments on student loans were made tax deductible. These tax
benefits primarily assist middle and upper-income class families. Students
whose personal or family income exceeds $100,000 are not eligible, and
students or families whose income is under $20,000 generally lack
sufficient tax liability to take advantage of the credits. Tax credits quickly
became a significant component of federal financial assistance for
postsecondary students, as Chart 6 indicates (Title IV Aid refers to the
federal grant and loan programs authorized under Title IV of the Higher
Education Act, as discussed above.)
Chart 6
Under graduate Use of Federal Higher Education Tax
Credits Compared to Grants and Loans (Title IV) 1999-2000
25%
28%
14%
33%
In 2001, the Economic Growth and Tax Relief Reconciliation Act created a
new deduction for tuition and other expenses. According to the GAO,
federal tax credit assistance for postsecondary students in Fiscal Year (FY)
2002 totaled $7.6 billion.
Federal Student Financial Aid Grants to States
The Leveraging Educational Assistance Partnership (LEAP) program
provides matching funds to states to encourage them to offer need-based
state grant programs. The FY 2006 federal appropriation was $65 million,
which supported an estimated $165 million in total aid (including the state
matches). Each state's allotment is based on its relative share of the total
national population of "students eligible to participate" in the LEAP
Program. Awards are made by states, and range from $100 to $5,000,
with an average award of $1,000.62
THE SHIFT FROM GRANTS TO LOANS
Over time, there has been a shift in federal student aid funding. Funding for needs-based
grants (Pell Grants, Educational Opportunity Grants and LEAP Grants) and subsidized
Stafford Loans targeted at low income students has declined relative to unsubsidized,
guaranteed Stafford Loans and tax credits that are primarily available to middle income
students. There has also been a gradual relative decrease in federal work-study support. The
College Cost Reduction and Access Act of 2007, by increasing the size of Pell Grants and
providing for mandatory funding, may somewhat ameliorate this trend. Merit-based
scholarships offered by state government and higher education institutions can also contribute
to this trend unless the revenue brought in by the mostly well-to-do students who receive
merit grants and scholarships is channeled back into needs-based grants.
Chart 7
Federal Funding for student Assistance
1992-93 compared to 2011-2012
90%
80%
70%
60%
50%
% Federal aid
40%
30%
20%
10%
0%
LOANS
GRANTS
EARNINGS
According to the College Board, nearly half (48 percent) of all students
from families with incomes below $40,000 in 2002, borrowed from federal
and private sources, compared to 12 percent in 1992-93, .and their
average loan amount increased by $1,500 (in constant 2006 dollars).
Although students from high income families borrowed larger amounts,
the increase was less.
Chart 8
Average Amount Borrowed from Federal and Private Sources by Full-time Dependent Undergraduates by Family Income
$6,500.00
$6,000.00
$5,500.00
Low income
$5,000.00
Low Middle
Middle High
High
$4,500.00
$4,000.00
$3,500.00
$3,000.00
Chart 9
Average Amount Borrowed form Federal and Private Sources by Full-Time Dependent Students, by Sector 2013-2014
$8,000
$6,000
$4,000
$2,000
$0
Public Four year Private Four year
For profit
In 2006, the average debt of graduating seniors in California public fouryear colleges was $17,200, and 47 percent of the graduates were in
debt.69 (This was very near the national average debt of $17,277 for
public university graduates.) For private school graduates, the average
debt load was $28,138.70 about a quarter of this debt was privatelyfunded, while three quarters was federally subsidized or guaranteed.
According to a September 2007 analysis by U.S. News & World Report,
Pepperdine University was the only California school whose students
ranked among the top 15 universities and colleges nationally with the
most debt: its average student debt ranked seventh ($31,718, with 62
are required for students with a family income below 150 percent of the
federal poverty level (about $31,000 for a family of four). The caps apply
to past, present and future federal student loans.
Table 3
Federal Student Loan Repayment Caps by Borrower's Income and Family Size (H.R.
2669)
Family Size
$30,000
Borrower Income
$60,000
$90,000
$120,000
0%
4.6%
8.1%
9.8%
0%
7.3%
9.8%
11.1%
4.7%
9.9%
11.6%
12.4%
7.3%
1 1 .2%
1 2.4%
13.1%
QUESTIONNAIRES
1. Minimum amount of the loan
10000-20000 ( )
20000-50000 ( )
SUGGESTION &
RECOMMENDATIO
N
BIBLIOGRAPHY
1. RBI Guidelines
2. Chartered Financial Analyst Magazine
3. Bank Quest Magazine
Websites:
www.rbi.gov.in
www.sbhyd.com
www.google.com