A

RESEARCH REPORT
ON
CONSUMER ATTITUDE TOWARDS EDUCATION LOAN IN
INDIA PROVIDED BY INDIAN BANK

Submitted in partial fulfilment for the award of the degree

Master of Business Administration

Chhattisgarh Swami Vivekananda Technical University, Bhilai

Submitted by,
Namrata Dubey
MBA – Semester 2nd
(Session 2009-2010)

Approved By, Guided By,

Mr. Saket Jeswani Mr. Mahendra Ikhar
HOD, MBA Lecturer

Shri Shankaracharya Institute of Technology and

Management
Junwani, Bhilai (C.G.) - 490020
 DECLARATION

I Namrata Dubey undersigned solemnly declare that the report of the thesis work
entitled “Customer attitude towards education loan in India provided by
Indian bank” is based on my own work carried out during the course of my study
under the supervision of Mr. Mahendra Ikhar.

I assert that the statements made and conclusions drawn are an outcome of my
research work. I further declare that to the best of my knowledge and belief the
report does not contain any part of any work which has been submitted for the
award of MBA degree or any other degree/diploma/certificate in this University or
any other University of India or abroad.

NAMRATA DUBEY

Enrolment No: AE7124

MBA – Semester II

CERTIFICATE
This is to certify that the work incorporated in the research ”Customer attitude
towards education loan in India provided by Indian bank ” is a record of
research work carried out by NAMRATA DUBEY bearing Enrolment No: AE7124
under my guidance and supervision for the part fulfilment for the award of MBA
Degree of Chhattisgarh Swami Vivekananda Technical University, Bhilai (C.G.),
India.

To the best of my knowledge and belief the research :

i) Embodies the work of the candidate him/herself,
ii) Has duly been completed,
iii) Is up to the desired standard both in respect of contents and language for
external viva.

Mr. Mahendra Ikhar

Lecturer

 
ACKNOWLEDGEMENT

I wish to acknowledge with a deep sense of heartful gratitude & intentness to

respected MR. Mahendra Ikhar who gave me the opportunity to undergo project
work & his valuable suggestion during my research course. I take this opportunity
to voice & record my sincere grate-fullness esteemed towards my guide Mr.
Mahendra Ikkhar (lecturer, ssitm) & completion.

I would like to express my deep since of gratitude to all my faculty of institute to

have been a constant source of my inspiration to me.

I would to extent my heartful thanks to my venerable parents & friends whose

imperishable love & affection inspired me to complete my task.

Namrata Dubey

MBA 2nd SEM

SSITM
TABLE OF CONTENTS

1. Declaration ------------------------------------- page no. 2

2. Certificate ----------------------------------------- page no.3

3. Acknowledgements--------------------------- page no. 4

4. Table of Contents ------------------------------- page no. 5

5. Introduction to the study ----------------------- page no. 6

6. Company Profile / Industry Profile--------------- page no.7 to 17

7. Literature Review------------------------------------- page no. 18 to 21

8. Research Methodology ----------------------------- page no.22 to 23

9. Data Tabulation, Analysis and Results---------------- page no. 24 to

29

10. Finding of the Study-------------------------------------- page no.30

11. Recommendations of the study----------------------- page no.31

12. Limitations of the study--------------------------------- page no. 32

13. Conclusions of the study----------------------------------- page no.33

14. References ------------------------------------------- page no.34

15. Research Progress Report

16. Questionnaire used-------------------------------- page no.35 to 36

 INTRODUCTION TO THE STUDY
Education is the essence of life. To ensure that no deserving student is denied
education for want of funds, the government is promoting education loans in a big
way. The basic aim or idea behind education loan is to bring education within the
reach of students and help them improve their prospects in life. Any student who
has secured admission in an institute of repute, whose degree/diploma is
recognized by University/Institute affiliated to any Central/State Statutory Body or
recognized by AICTE (All India Council of Technical Education) and other institutes
of repute, is eligible for educational loan.

An education loan is a loan taken to help pay for an education, usually at a college
or trade school, but may also be used to pay for private schools or prep schools as
well. The education loan is available in several different types. These are student
loans, parent loans and private loans. Loans are also either guaranteed or
unguaranteed. Student and parent loans are most likely to be guaranteed by the
government, though many agencies work for the government in this respect.
Unguaranteed or unsubsidized loans are usually from private lenders only, and
usually can only be obtained if one has a good credit score or significant equity.
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,
higher education is progressively moving into the domain of private sector. With a
gradual reduction in government subsidies higher education is getting more and
more costly and hence the need for institutional funding in this area. The scope of
education has widened both in India and abroad covering new courses in
diversified areas. Development of human capital is a national priority and it should
be the endeavour of all that no deserving student is denied opportunity to pursue
higher education for want of financial support. Loans for education should be seen
as an investment for economic development and prosperity. Knowledge and
information would be the driving force for economic growth in the coming years. In
2000 the Bank has launched its vehicle loan and consumer loan Schemes in select
cities. In 2001 Sterling InfoTech Ltd has tied up with Indian Bank to help students
obtain low-cost finance for the Carnegie Technology education software
engineering course. In 2003 Indian Bank has associated with the M S
Swaminathan Research Foundation (MSSRF), Chennai to sponsor a programme on
agriculturists to be aired on the All India Radio.
In 2004 Indian Bank got best commercial bank award.

COMPANY PROFILE

INDIAN BANK
• A PREMIER BANK OWNED BY THE GOVERNMENT OF INDIA

• Established on 15th August 1907 as part of the Swadeshi movement

• Serving the nation with a team of over 22000 dedicated staff

• Total Business crossed Rs.1, 24,413 Crores as on 31.03.2009

• Operating Profit increased to Rs. 2228.83 Crores as on 31.03.2009

• Net Profit increased to Rs.1245.32 Crores as on 31.03.2009

• 1648 Branches spread all over India.

INTERNATIONAL PRESENCE

• Overseas branches in Singapore and Colombo including a Foreign Currency

Banking Unit at Colombo

• 240 Overseas Correspondent banks in 70 countries

• Diversified banking activities - 3 Subsidiary companies

• Indian Bank Merchant Banking Services Ltd

• Indian Bank Housing Ltd.

• Indian Fund Management Ltd

• A front runner in specialised banking

• 90 Forex Authorised branches inclusive of 1 Specialised Overseas Branch at
Chennai exclusively for handling forex transactions arising out of Export,
Import, Remittances and Non Resident Indian business

• 1 Small Scale Industries Branch extending finance exclusively to SSI

Leadership in Rural Development

• Pioneer in introducing Self Help Groups and Financial Inclusion Project in the
country

• Award winner for Excellence in Agricultural Lending from Honourable Union

Minister for Finance

• Best Performer Award for Micro-Finance activities in Tamil Nadu and Union
Territory of Pondicherry from NABARD

• Established 7 specialized exclusive Microfinance branches called "Micro sate"

across the country to cater the needs of urban poor through SHG (Self Help
Group)/JLG (Joint Liability Group) concepts ATMs under shared network

• Internet and Tele Banking services to all Core Banking customers

• E-payment facility for corporate customers

• Cash Management Services

• Depository Services
 DEPOSITS SCHEMES

Indian Bank has many deposit schemes tailored to suit the needs of its customers,
both individuals and organisations.
The facilities of nomination, loan against term deposit and foreclosure of term deposit
are available. Interest paid on domestic term deposits, except Recurring Deposit, is
subject to Tax deduction at source, as per rules from time to time. Further details can
be had from any of our branches.

FIXED DEPOSITS

Fixed Deposits are accepted for a minimum amount of Rs.100/- with minimum period
of 7* days and a maximum period of 120 months. No ceiling for maximum amount of
deposit. Interest is paid every quarter. Monthly interest can also be paid at a
discounted rate. Interest payable on Fixed Deposit can also be transferred to Savings
Bank or Current Account of the customer. Facilities for loan, foreclosure, nomination
etc. are available.* 7 days minimum amount Rs.1 lakh.

INDSTAR DEPOSITS

Fixed Deposits placed for short term periods i.e. 7* days to 180 days will be renewed
automatically, on the due date, on the basis of the request from the depositor for the
same tenor as that of the original deposit for a maximum of 6 times. The customer
need not present the deposit receipt every time for renewal. The customer has the
option to withdraw the periodical interest or to renew along with the principal.* 7 days
minimum amount Rs.1 lakh.

FACILITY DEPOSITS

Indian Bank’s”user friendly" Facility deposit combines the advantage of Fixed deposit
with the flexibility of an Overdraft against the Deposit. A fixed deposit or re-
investment deposit, with a minimum of Rs.1000/- or more, in multiples of Rs. 1,000 is
to be made for a minimum period of 1 year and a maximum period of 3 years. A
cheque book will be issued to the customer to enable the depositor to draw at any
time up to 90% of the initial Deposit as Overdraft, at a rate 2% over the interest rate
payable on Fixed Deposits or at rates as prescribed the Bank from time to time. No
PURPOSE

• To meet the cost of education covering fee payable to college / school /

hostel, exam fees, purchase of books / equipment’s, travel expenses /
passage money for studies abroad, purchase of computers essential for
completion of the course etc. Caution Deposit, Building fund/ refundable
deposit supported by institution bills/receipts, subject to a maximum of
10% of total tuition fees for the entire course.

• Insurance premium for student borrower.

COURSE OF STUDYSTUDIES IN INDIA

• Diploma/Graduation/Post-graduation courses in various disciplines.

• Computer certificate courses of reputed institutes accredited to The

Department of Electronics.

 Studies Abroad

• Job-oriented professional/technical courses offered by reputed universities.

• MCA, MBA, MS etc.

• Courses conducted by CIMA – London, CPA in USA etc

• Maximum Permissible Amount of Loan

• For Studies in India - Rs.10.00* lakhs

• For Studies Abroad - Rs.20.00* lakhs

• Higher quantum of loan also can be considered in deserving and meritorious

cases.

PLACE OF AVAILMENT

The loan can be availed from the branch nearest to the place of domicile
MARGIN

• Up to Rs.4.00 lakhs - NIL

• Above Rs.4.00 lakhs

For Studies in India - 5%

For Studies Abroad - 15%

RATE OF INTEREST

• Up to Rs.4.00 lakhs -12.50 % p.a. at present

• Above Rs.4.00 lakhs -13.00 % p.a. at present

• Floating Rate linked with Benchmark Prime Lending Rate (BPLR) of the Bank
and liable to undergo changes whenever there is a change in BPLR. 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.

• The loan is also sanctioned for studying computer certificate courses of

recognized bodies, which are accredited to the Department of
Electronics.

• If you plan to study employment-oriented vocational or professional

course, a program of CPA in the US or CIMA-London or specialized
programs like MBA or MCA, you can apply for a loan in Indian Bank.

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 lacks for studying in

India whereas a maximum amount of Rs 20 lacks can be borrowed for
studying in abroad. The amount may increase in special cases.

• For loans above Rs 4 lacks 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 lacks, then you should provide the bank
with a guarantee of a 3rd party.

• If the amount borrowed is more than Rs 7.5 lacks, then the co-obligation 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. Student loans are an unfortunate fact of life for an increasing number
of American students. It is not the aim of this page to scare you about student
loans but rather, to give you some information so that you can make the choice
that is best for you in regards to getting a student loan. Knowledge is power, and
the more you know about what you are getting into when you sign those loan
papers, the better you will be in the long run. A survey by the National Council of
Higher Education Loan Programs (NCHELP) confirmed that student loans continue
to be the largest source of student aid, with approximately $29 billion for the 1995-
96 federal fiscal year provided to students to meet their postsecondary
educational costs. Private lenders financed over 68 percent of the total, or an
estimated $19.8 billion, under the Federal Family Education Loan Program (FFELP -
formerly Guaranteed Student Loans), according to the National Council of Higher
Education Loan Programs (NCHELP) survey. The most popular form of financial aid
for students is Student Loans. While there are a variety of loan programs available,
the largest programs are the Subsidized Federal Stafford Loans and the
Unsubsidized Federal Stafford Loans. Subsidized Federal Stafford loans are Big
Business and Big Profit for a huge number of banks and finance corporations in
America. While you are attending school, the Federal Government (read: The
Taxpayers) pays the interest charges that accumulate on your loan. If you have a
subsidized loan, you do not pay this accumulated interest back. If your loan is
unsubsidized, the accumulated interest must be paid during the term of the loan,
or it can be "deferred" until you begin making payments. For both subsidized and
unsubsidized loans, most students do not make any payments on the principle OR
the interest until six months after they graduate, leave school, or drop to less than
half-time.

RESEARCH METHODOLOGY

RESEARCH MODEL

Based on the above discussion, we develop the research model for this study as
shown in

The methodology section will consist of three sections.

The following table can be taken as a guideline for preparing this section.

SECTION A: OBJECTIVES OF THE STUDY

a. To analysis of deposit offered by Indian bank.

b. To analyse customer satisfaction over the education loan & deposits.

c. To identify all the services offered by Indian bank.

SECTION B:
The second section will discuss about the research plan and sampling plan
used in the study. The following table can be taken as a guideline for
preparing this section.
 RESEARCH PLAN
Research Design: Exploratory

Research Method Used Survey

Research instrument
Questionnaire
Used
Data Collection
Through questionnaire
Primary
internet
Secondary
Sampling Plan Simple Random

No. of samples collected 50

The research should also present why he has chosen the design he has
chosen. And he should also write about something about the design /
method / technique and sampling plan to support his study. In any case the
researcher should not write what he has not done in the study.

SECTION C:
Section C will contain the demographic characteristics of the respondents. A
sample is shown below:

Measur
Item Number of Respondents
e
0-20 0

Age 20-30 27

30-50 23
<1
20
Lakh
1-3
Income 26
Lakhs
3-5
4
Lakhs
 Total 50

DATA TABULATION, ANALYSIS &

RESULTS

DATA TABULATION

Factor Analysis
 Communalities
Initial Extraction
Bank Image 1.000 .636
Rate of Int 1.000 .708
Paper Formal Rec. 1.000 .747
Time Taken 1.000 .590
Amt. Of Loan 1.000 .630
Sec. Deposit 1.000 .736
needed
Types of Int. Rate 1.000 .480
Repay System 1.000 .665
Instalment Period 1.000 .687
Level of Sec. 1.000 .724
Provided
Extraction Method: Principal Component
Analysis.
 ANOVA
Cluster Error
Mean Square df Mean Square df F Sig.
Bank Image 25.738 2 .609 47 42.293 .000
Rate of Int 3.544 2 .675 47 5.248 .009
Paper Formal Rec. 4.389 2 1.107 47 3.964 .026
Time Taken 2.944 2 1.019 47 2.889 .066
Amt. Of Loan 2.034 2 .775 47 2.625 .083
Sec. Deposit needed 7.004 2 .934 47 7.496 .001
Types of Int. Rate 3.440 2 .945 47 3.642 .034
Repay System 11.040 2 .681 47 16.215 .000
Installment Period 5.748 2 .973 47 5.908 .005
Level of Sec. Provided 21.034 2 .903 47 23.299 .000
The F tests should be used only for descriptive purposes because the
clusters have been chosen to maximize the differences among cases in
different clusters. The observed significance levels are not corrected for
this and thus cannot be interpreted as tests of the hypothesis that the
cluster means are equal.

Quick Cluster

Initial Cluster Centres

Cluster
1 2 3
Bank Image 1 5 1
Rate of Int 3 4 4
Paper Formal Rec. 2 4 2
Time Taken 4 3 2
Amt. Of Loan 3 4 4
Sec. Deposit needed 5 3 3
Types of Int. Rate 3 3 3
Repay System 4 5 2
Instalment Period 2 5 5
Level of Sec. Provided 5 4 1
Iteration Historya
Iteratio Change in Cluster
n Centres
1 2 3
1 2.547 2.641 2.700
di

2 .214 .211 .318

3 .486 .317 .343
m

en

si
4 .294 .178 .280
on

5 .462 .267 .373

6 .000 .000 .000
0

a. Convergence achieved due

to no or small change in cluster
centres. The maximum
absolute coordinate change for
any centre is .000. The current
iteration is 6. The minimum
distance between initial
centres is 6.164.

Final Cluster Centers

Cluster

1 2 3
Bank Image 3 4 1

Rate of Int 3 3 3

Paper Formal Rec. 3 3 4

Time Taken 4 3 3

Amt. Of Loan 3 4 3

Sec. Deposit needed 4 3 3

Types of Int. Rate 4 3 3

Repay System 4 3 2

Instalment Period 3 4 4

Level of Sec. Provided 4 3 1

 Distances between Final
Cluster Centres
Cluster 1 2 3

dime
1 2.835 4.218

nsio
2 2.835 3.747
n0
3 4.218 3.747

Number of Cases in
each Cluster
Cluster 1 14.000

2 27.000

3 9.000

Valid 50.000

Missing .000

FACTOR
/VARIABLES Bank Image Rate of Int., Paper Formal Req., Time Taken, Amt. Of
Loan, Sec. Deposit needed
Types of Int. Rate, Repay System, Installment Period Level of Sec. Provided.
/MISSING LISTWISE

Total Variance Explained

Compone Extraction Sums of Squared Rotation Sums of Squared
nt Initial Eigen values Loadings Loadings
% of Cumulativ % of Cumulativ % of Cumulative
Total Variance e% Total Variance e% Total Variance %
1 2.156 21.559 21.559 2.156 21.559 21.559 1.912 19.124 19.124
2 1.937 19.371 40.931 1.937 19.371 40.931 1.887 18.873 37.997
3 1.374 13.741 54.671 1.374 13.741 54.671 1.537 15.367 53.363
4 1.136 11.357 66.028 1.136 11.357 66.028 1.267 12.665 66.028
5 .871 8.706 74.735
6 .706 7.059 81.794
dimension0

7 .588 5.878 87.672

8 .497 4.974 92.646
9 .402 4.021 96.667
10 .333 3.333 100.000
Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1 2 3 4
Bank Image .351 .667 .206 -.160
Rate of Int .542 -.610 .181 -.095
Paper Formal Rec. .251 -.402 .239 .682
Time Taken .358 -.073 -.316 .598
Amt. Of Loan .118 .586 .408 .326
Sec. Deposit needed .626 -.510 -.123 -.260
Types of Int. Rate .621 .047 .238 -.187
Repay System .516 .527 -.296 .184
Instalment Period .273 .013 .778 -.086
Level of Sec. Provided .645 .264 -.459 -.167
Extraction Method: Principal Component Analysis.
a. 4 components extracted.

Rotated Component Matrix

Component
1 2 3 4
Bank Image -.143 .517 .540 -.240
Rate of Int .797 -.107 .108 .222
Paper Formal Rec. .179 -.199 .151 .808
Time Taken .039 .338 -.174 .666
Amt. Of Loan -.416 .219 .616 .172
Sec. Deposit needed .836 .156 -.094 .064
Types of Int. Rate .453 .305 .426 -.023
Repay System -.095 .786 .112 .160
Instalment Period .235 -.204 .768 -.011
Level of Sec. Provided .288 .794 -.091 -.059
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 5 iterations.
Component Transformation Matrix
Component 1 2 3 4
1 .648 .635 .329 .262
2 -.659 .593 .372 -.276
3 .044 -.495 .868 .001
dimensio n0

4 -.380 -.002 .016 .925

Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.

FINDING OF THE STUDY

I am must be to consider student loans. There are many types of student loans out
there. The key to finding the loan for you knows about these loans. For example,
did you know that the types of graduate student loans are different than those for
undergraduates? If not, then keep reading. Education or Student Loans from banks
have become a preferred way of financing higher education in India and to study
abroad. Banks have also become more market-oriented, making it convenient to
avail such loans. Given below are the interest rates from some of the banks like
State Bank of India, ICICI Bank HDFC, Bank of Baroda, UCO, Indian Bank and
others. We will soon be updating this page with interest rate information on more
banks.

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 Indian Bank
Education Loans, can help finance your ambitions and goal.

1. Rate of interest.

2. Security deposit needed is major issue of loan taker.

3. Time taken is significant factor in my study.

4. Amount of loan.

5. Types of interest.

6. Bank image.

7. Paper formality required.

8. Repayment system.

9. Installment period.
RECOMMENDATION

1) To provide satisfaction about the education loan & deposit.

2) To provide & improve better bank services.
3) Indian bank is provided simple procedure of sanction for education loan.
4) Co-ordinate among different schemes in Indian banks.
5) It should provide complete range of services under one roof.

6) It should also provide many investment services to the customers.

7) It should provide more insurance products.

8) It should have its insurance product in all the branches.

9) It should provide ban assurance.

10) Indian bank provide better rate of interest.

11) It should also provide sufficient amount of loan.

Expand Income Contingent Repayment (ICR) to FFELP. Create an interest-only

repayment option. Ensure borrower forbearance is used to avoid default and
reduce hardship by requiring borrowers to complete an online counselling course
provided by lenders and certify they are aware of the availability of ICR in order to
get a third year of forbearance. For any additional forbearance beyond three years
the borrower would be required to repeat the same process. Improve/expand
eligibility requirements for economic hardship deferment.

LIMITATIONS
TODAY'S students are no strangers to loans. According to The Economist, students
who borrow to pay for college graduate with an average of more than $7,500 in
debts for a public education and nearly $11,000 for private colleges. For many this
debt is compounded by the necessity of postgraduate or specialized degrees in
order to compete for jobs in their fields or for sustainable, living-wage salaries. As
many social service fields are "professionalized," the need for advanced degrees
for the most basic jobs is amplified. An annual survey of freshman by the UCLA
Higher Education Research Institute (HERI), reported by the Chronicle of Higher
Education, found that students are worried about having enough money to
complete their education, with 51 percent reporting some concern about financing
college and an additional 18 percent not sure if they will have enough funds to
complete college. "Obviously the cost of college has become a factor in students'
college choice process," says Dr. Linda Sax, associate director of HERI. Students
are choosing colleges that offer more attractive financial aid packages with hopes
of avoiding later debt. For lower-income people "college is a relatively risky
investment decision," says Mortenson. "If my estimates are correct, only about one
in five that starts college is going to graduate, or at least have a bachelor's degree,
by age 24. That means four out of five, when they look at that debt, are not likely
to get the degree and gain access to the jobs that will enable them to repay the
debt."

Indeed, for some, college is simply not a choice at all; it is viewed as a luxury. For
others, college is not part of their career plan; their vocational goals are not
furthered by a four-year degree.

1. SAMPLE SIZE

Due to vast area of the customer sample size restricted to 50 only.

2. RESPONSE ERROR

The response given to the researcher were not always accurate since
satisfaction is qualitative indicator the respondents regarding their
understanding of satisfaction.

2. LIMITATION OF BIASNESS

Generally respondent are based to the question raised, thus the result of
research will have error and the very purpose of research is lost. Therefore
took utmost care while dealing with respondent.

4. LIMITATION DUE TO LACK OF TIME OF CUSTOMER.

 CONCLUSIONS
• Indian bank is universal banking.

• Indian Bank is a front runner in specialized banking.

• Indian Bank is a pioneer in rural development.

• It has provided loans to agriculture sector also.

• Indian bank is one of the best commercial bank in India.

• Indian Bank has an impressive international presence.

As the world moves towards more intellectually based work, having a solid
education is becoming more important than ever. As such, it’s no surprise that
more and more career paths are requiring not only an initial education but also
continuing education courses to ensure that the education you have is both top-
notch and also very current. However, continuing your education, whether it be
from your desire or for a prospective/current employer, can be very expensive. As
such, you may need to get a continuing education loan to help you pay for your
expenditures while taking the courses. Many people are put off by the concept of
getting a continuing education loan. After all, the concept of taking on (or taking
on more) debt can seem quite problematic, however it’s worth noting that there
are two types of debt: good and bad. Education falls under the category of good
debt because you’re expecting to keep or improve your salary well above the cost
of the education itself. Hence, you should not be afraid or overly concerned to take
on a continuing education loan because you’ll make the cost back and then some
with the job your education provides.

Others may think that getting one of these loans is hard when this conclusion
could be further from the truth. Many banks and lending institutions are glad to
lend money for education simply because its an extremely safe investment.
Consider the position of a bank who’s thinking of lending money to a person for
continuing education. That person might be making, say, $40,000 now, but the
education will let them make $60,000. Now suppose that the education will cost
them $10,000 (a few courses). Does it seem logical for the bank to decline this
loan? Certainly not. The individual may make enough money to pay back the loan
within one year of working. As such, it would make very little sense for a bank to
decline this loan. While your situation will certainly be different, this illustration
should give you a good sense that most banks are glad to provide loans for
education, provided that that education leads to something better or gives you a
good chance of continuing working at your current job.

REFERENCE

CITATION FROM BOOKS

1. C.R. Kothari “Research Methodology” published by “Wishwa Prakashan” Third

edition.

2. Kenneth S. Borden’s & Bruce B. Abbott “Research Design and Methods” Sixth
edition.

CITATION FROM WEBSITE

• www. Indian bank .com

• /Indian-bank-educational-loans-www-indian-bank-com

• www.scribd.com
• http://www.iloveindia.com/finance/loans/education-loans.html

• http://www.hindustanlink.com/careertex/educational-loans-india.htm

• http://www.successcds.net/Educationloan/Education_loan_Banks.htm
QUESTIONNAIRE
I am a student of MBA II Semester from SSITM, Bhilai. As a part of my curriculum I
am conducting a survey on customer attitude toward education loan scheme for
education in India provided by Indian Bank in Durg / Bhilai City. I would be grateful
to you for providing your genuine responses.

1. The following questions are some general questions. Please answer

them appropriately.
1- Are you taken Education loan from Indian
Yes No
1 Bank

2. Rate your attitude toward following factor in an educational loan from

Indian bank.
Highly Dissatisfied

Highly Satisfied
Dissatisfied

Satisfied
Neutral

Factors

1 2 3 4 5

2-1 Bank Image

2-2 Rate of Interest

2-3 Paper formality required

2-4 Time Taken

2-5 Amount of loan

2-6 Security Deposit Needed

2-8 Types of Interest rate

2-9 Repayment System

2-
Instalment Period
10

2-
Level of Security provider
11
3. Are you satisfied with the service provided by Indian bank? Yes 
No 

4. Please provide the following details which would help in supporting

our research. The information will be kept strictly confidential and for
the purpose of analysis only. Please tick the appropriate option.
4-1 Name 4-2 Age <20 20-29 30-39 ≥40

3-
Annual 1-2.99 ≥5
4-3 Gender Male  Female  4-4 <1 Lakh 4.99
Income Lakhs Lakhs
Lakhs

Self-
Studen Housewif Employ
4-5 Profession Employ Other
t e ed
ed