Professional Documents
Culture Documents
ON
Educational Loan
Of
Submitted by:
Prachi Chopra
3rd Semester
Enrollment No.0502061808
Studies
Affiliated to
ACKNOWLEDGEMENT
CONTENTS
2. Introduction to loans
• loans
• Types of loans
•History
• Recent news/initiatives
10.Bibliography
Loans are the most versatile form of lending. That’s why I take the title of the study of my project as
“Analysis of loans in India with special reference to “CENTRAL BANK OF INDIA”.
Scope of loans
The scope of the loans is vast. It deals with that topic of income eligibility, Annual or monthly
installments, late payment charges, interest rates. In this Study above points are taken to compare
the loan of cbi bank with respect to Other issuers of loans. By this way of studying we can find out
the image of the cbi educational loan with other financial institutions.
Type of Research:
This is basically an analytical study. The study aims at analyzing the impact
In this study, both primary and secondary data have been used. The
Classification and tabulation is carried out on the surveys collected. Inferences are drawn on the
surveys. Charts and tables are presented to improve the presentation of the report.
The study faces many limitations like any other research. However, these
Limitations cannot have a drastic impact on the conclusions and
Recommendations of the study as these limitations are within manageable
Limits. Some of the limitations are as follows:
The coverage of more number of banks was not highly successful because of
The time limit and the adequacy in collection of data.
High degree of accuracy is doubtful as the findings are based on the premise
That has given factual information. Hence, an allowance should be made
for deviations and errors.
Being a purely academic-based project, it has been limited to certain
particular areas of study of educational loan.
Loan
Definition
Alo an is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets
over time, between the lender and the borrower.
Types of loans
Secured
Unsecured
Unsecured loans are monetary loans that are not secured against the borrower's
assets. These may be available from financial institutions under many different
guises or marketing packages:
personal loans
bank overdrafts
corporate bonds
The interest rates applicable to these different forms may vary
depending on the lender and the borrower. These may or may not be
regulated by law. In the United Kingdom, when applied to individuals,
these may come under the Consumer Credit Act 1974 .
Demand
Demand loans are short term loans that are atypical in that they do not have
fixed dates for repayment and carry a floating interest rate which varies
according to the prime rate. They can be "called" for repayment by the
lending institution at any time. Demand loans may be unsecured or secured.
Loan payment
The most typical loan payment type is the fully amortizing payment in which each
monthly rate has the same value overtime. It varies with the type if loan
Education Loans
Educational loans work like any other debt. That is, loans
are simply specific money that you borrow from a bank, a
private lender, or some other type of lender. Afterwards,
you must repay your debts with interest. However, unlike
other types of loans, educational loans are different in
several respects
Getting best education loan
Most students and parents today realize how expensive an
education is. Whether you hope to study at a private high
school, a college, university, or an overseas school, tuition
costs plus the costs of books and living can quickly add up.
If you are worrying about the cost of school, you should not
feel that money has to decide your education. There are a
number of financial aid options that can help you.
Educational loans can be one important part of your overall
financial aid package. There are special distance
education loans, need-based loans, college loans,
Studies Abroad
15
%
- Scholarship/ assistantship to be included in margin.
- Margin may be brought-in on year-to-year basis as and
when disbursements are
made on a pro-rata basis.
7. SECURITY :
Upto Rs
4 lacs
Co-obligation of parents.
No security
Above
Rs.4 lacs
and upto
Rs7.5
lakhs
Co-obligation of parents
together with collateral
security in the form of
suitable third party
guarantee. 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".
Above Rs.7.5 lakhs
Co-obligation of parents
together with tangible
Above Rs.7.5 lakhs
Co-obligation of parents
together with tangible
collateral security of suitable
value, along with the
assignment of future income
of the student for payment of
instalments
Note:-
•
The security can be in the form of land/ building/ Govt. securities/ Public Sector
Bonds/Units of UTI, NSC, KVP, life policy, gold, shares/mutual fund
units/debentures,
Bad credit
Having bad credit simply means that you had trouble in the
past paying your bills on time. You may have bad credit
because you have been the victim of identity theft, because
you have taken out too many loans, or, most likely, you
simply have not paid all your bills promptly. While bad credit
can make it harder for you to get the best loan rates -- or
even any credit at all - today's bad credit education loans
allow you to borrow money for your education. A bad credit
education loan typically has different applications standard
and eligibility standards, making it easier for even those with
an imperfect credit history to get the best education
possible. Education loans for bad credit are widely available
from private lenders and from other sources. When it comes
to bad credit education loan, student options are numerous,
allowing almost anyone to get the money they need for
school.
How to Get Loans with Bad Credit
If you don't need education loans right away, there are
several things that you can do to improve your bad credit.
This can help you qualify for better interest rates and may
even allow you to qualify for traditional educational loans: If
you don't have much of a credit history, consider getting a
few bills signed over to your name and open a checking
account. By paying your bills on time and balancing your
account, you can build a good credit history. If you already
have credit cards or loans, work hard at paying down your
loans as much as possible.
Banks
One of the important functions of the Bank is to accept
deposits from the public for the purpose of lending. In fact,
depositors are the major stakeholders of the Banking
System. The depositors and their interests form the key area
of the regulatory framework for banking in India and this has
been enshrined in the Banking Regulation Act, 1949. The
Reserve Bank of India is empowered to issue directives /
advices on interest rates on deposits and other aspects
regarding conduct of deposit accounts from time to time.
With liberalization in the financial system and deregulation
of interest rates, banks are now free to formulate deposit
products within the broad guidelines issued by RBI .
This policy document on deposits outlines the guiding
principles in respect of formulation of various deposit
products offered by the Bank and terms and conditions
governing the conduct of the account. The document
recognises the rights of depositors and aims at
dissemination of information with regard to various aspects
of acceptance of deposits from the members of the public,
conduct and operations of various deposits accounts,
payment of interest on various deposit accounts, closure of
deposit accounts, method of disposal of deposits of
deceased depositors, etc., for the benefit of customers. It is
expected that this document will impart greater
transparency in dealing with the individual customers and
create awareness among customers of their rights. The
ultimate objective is that the customer will get services they
are rightfully entitled to receive without demand.
While adopting this policy, the bank reiterates its
commitments to individual customers outlined in Bankers'
Fair Practice Code of Indian Banks' Association. This
document is a broad framework under which the rights of
common depositors are recognized. Detailed operational
instructions on various deposit schemes and related services
will be issued from time to time
Introduction of CBI
Central Bank of India, a government-owned bank, is one of the oldest and
largest commercial banks in India. The bank currently has 3,168 branches
and 270 extension counters across 27 Indian states.
Mr. S Sridhar [Ex CMD National Housing Bank] has been appointed as the
Chairman and Managing Director of state-run Central Bank of India as on 2
March 2009. The post had been lying vacant and the appointment was
cleared by the government, the Bank said in a statement. To improve the
Bank's capital adequacy ratio and enable it to support the credit requirements
of the productive sectors of the economy, the Centre has recently decided to
infuse Rest 1,400 core in the Bank. Under the proposed capital infusion
plan, Central Bank of India will get Rs 700 crore by this month-end, while
the balance amount will be made available to the Bank in next fiscal.