“A STUDY ON THE PERCEPTION OF BANKERS AND

BENEFICIARIES TOWARDS EDUCATIONAL LOAN”

Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE

Submitted by

ASWINY MURALI
(CCASBCM212)

Under the supervision of

Prof. BABY JOHN C L

DEPARTMENT OF COMMERCE

CHRIST COLLEGE(AUTONOMOUS), IRINJALAKUDA

MARCH 2021
 CHRIST COLLEGE(AUTONOMOUS), IRINJALAKUDA

CALICUT UNIVERSITY

DEPARTMENT OF COMMERCE

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON THE

PERCEPTION OF BANKERS AND BENEFICIARIES TOWARDS
EDUCATIONAL LOAN” is a bonafide record of project done by ASWINY
MURALI, Reg. No. CCASBCM212, under my guidance and supervision in
partial fulfillment of the requirement for the award of the degree of
BACHELOR OF COMMERCE and it has not previously formed the basis for
any Degree, Diploma and Associateship or Fellowship.

Prof. K.J.JOSEPH Prof. BABY JOHN C L

Co-ordinator Project Guide
 DECLARATION

I, ASWINY MURALI, hereby declare that the project work entitled “A

STUDY ON THE PERCEPTION OF BANKERS AND BENEFICIARIES
TOWARDS EDUCATIONAL LOAN” is a record of independent and bonafide
project work carried out by me under the supervision and guidance of Prof.
Baby John C L, Professor, Department of Commerce, Christ College,
Irinjalakuda.

The information and data given in the report is authentic to the best of
my knowledge. The report has not been previously submitted for the award of
any Degree, Diploma, Associateship or other similar title of any other
university or institute.

Place: Irinjalakuda Aswiny Murali

Date: CCASBCM212
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all

people who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under

whose divine guidance; I have been able to complete this work successfully.

I would like to express my sincere obligation to Rev.Dr. Jolly Andrews,

Principal-in-Charge, Christ college Irinjalakuda for providing various facilities.

I am thankful to Prof. K.J.Joseph, Co-ordinator of B.Com (Finance), for

providing proper help and encouragement in the preparation of this report.

I am thankful to Ms.Prassy Viswambaran, Class teacher for her cordial

support, valuable information and guidance, which helped me in completing
this task through various stages.

I express my sincere gratitude to Prof. Baby John C L, Professor, whose

guidance and support throughout the training period helped me to complete this
work successfully.

I would like to express my gratitude to all the faculties of the

Department for their interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of

my college for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.
 TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1-6

CHAPTER 2 REVIEW OF LITERATURE 7 – 13

INDUSTRY AND COMPANY

CHAPTER 3 14 - 19
PROFILE
DATA ANALYSIS AND
CHAPTER 4 20 - 42
INTERPRETATION
FINDINGS, SUGGESTIONS
CHAPTER 5 43 - 47
& CONCLUSION

BIBLOGRAPHY

ANNEXURE
 LIST OF TABLES

TABLE
TITLE PAGE NO:
NO:
4.1 Table showing age wise classification of beneficiaries 22
4.2 Table showing gender wise classification of beneficiaries. 23
4.3 Table showing marital status of beneficiaries 24
4.4 Table showing the educational status of beneficiaries 25
4.5 Table showing present status of beneficiaries 26
4.6 Table showing parent’s qualifications 27
4.7 Table showing occupation of the parents 28
Table showing recommendation or any influence for getting
4.8 29
educational loan
4.9 Table showing the reasons for availing educational loan 30
Table showing that the beneficiaries got the total amount of
4.10 31
the loan applied for
Table showing the adequacy of educational loan to meet the
4.11 32
expenditure
4.12 Table showing the repayment of loan 33
Table showing the satisfaction with the overall service
4.13 34
provided by the banks
4.14 Table showing the medium useful to spread information 35
4.15 Table showing the perception about educational loan 36
4.16 Table showing area wise classification of the banks 37
Table showing the problems faced relating to educational
4.17 38
loan by the bankers
Table showing probable reasons for low response of
4.18 39
application for educational loan
4.19 Table showing the perception about educational loan 41
 LIST OF CHARTS

FIGURE
TITLE PAGE NO:
NO:
Chart showing classification of the respondents based on
4.1 22
age
Chart showing classification of the respondents based on
4.2 23
gender group
Chart showing classification of the respondents based on
4.3 24
marital status of beneficiaries
4.4 Chart showing the educational status of beneficiaries 25
4.5 Chart showing the present status of beneficiaries 26
4.6 Chart showing parent’s qualifications 27
4.7 Chart showing occupation of parents 28
Chart showing recommendation or any influence for
4.8 29
getting educational loan
4.9 Chart showing the reasons for availing educational loan 30
Chart showing that the beneficiaries got the total amount
4.10 31
of the loan applied for
Chart showing the adequacy of education loan to meet the
4.11 32
expenditure
4.12 Chart showing the repayment 33
Chart showing the satisfaction with the overall service
4.13 34
provided by banks
4.14 Chart showing the medium useful to spread information 35
4.15 Chart showing the perception about educational loan 36
4.16 Chart showing area wise classification of the banks 37
Chart showing the problems faced relating to educational
4.17 38
loan by bankers
Chart showing the probable reasons for low response of
4.18 40
application for educational loan
4.19 Chart showing the perception about educational loan 42
 CHAPTER- 1

INTRODUCTION

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 Education is vital to the human resources and their empowerment in any
country. National and state level polices are framed to ensure that this basic need of
the population is met through appropriate public and private sector on initiations.
While government endeavors to provide primary education to all on a universal basis,
higher education is progressively moving into the domain of private sector. With the
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 educational has widened both in India and in abroad covering
new courses in diversified areas. Development of human capital is a national priority
and it should be the endeavor of all that no deserved student is denied the 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. The
government both central and state is frequently issuing instructions and guidelines to
commercial banks to actively be involved in educational financing.

Making loans accessible to a wide section of students has been one of the
priority areas of the government of India. Today around 18 Lakhs students all over
India are enjoying benefits of educational loans worth 16000 crores, which have been
disbursed to the needy students, according to the Finance Ministry. Forty per cent of
total advances of the commercial banks are advanced to priority sectors like
agriculture, small scale industry etc. Educational loans also form a part of these
priority sector advances of public sector banks, as higher education has gained
significance all across the world in the knowledge era and in these times of
globalization.

The growth of higher education system in terms of institutions and enrolment

was appreciable in India especially during the nineties and beyond, but the nature of
this growth raises some issues. Now there have been quick transitions from publicly
funded general higher education to private professional education dominated by
engineering, management and medicine. The private sector took up this expansion, as
public institutions were not in a position to expand. Apart from obvious concerns
about quality, the major consequences of this mushrooming growth of private sector

2
in higher education field are higher user costs. The tuition fees in all private
professional institutes are high, making higher education increasingly expensive. As a
result, more and more students and their families felt the need to borrow – a trend
unknown just a few years ago.

Thus the financing of higher education is a matter of great theoretical and

empirical debate. The nature, extent and mode of participation of public funds in the
education sector involve a long list of arguments put forward by individual scholars
and institutions and hence this study.

1.2 STATEMENT OF THE PROBLEM

Education has become very expensive proposition nowadays. The fee

structures of self-financed institutions are higher, which have mushroomed in
numbers in the last two decades or so. Moreover, fee structures in elite band institutes
of higher importance are quite high and so to avail good quality education, it is very
imperative for students and families to have access to credit advances. Finally, this
study assumes that the lack of interest among the bank authorities may be due to the
poor repayment levels of educational loan among borrowers, which in turn may lead
to the increasing of NPA (Non-performing Assets),which is a challenge that
constraints the bank‟s performance considerably. Hence, the situation is critical to be
examined so as to improve our understandings about educational loan environment
and to suggest potential areas of improvement and intervention.

1.3 SIGNIFICANCES OF THE STUDY

The study aims to analyze both the borrowers and bankers perception about
educational loans. More specifically, this study addresses the problems and level of
satisfaction of borrowers with regard to proceed employed by bankers among the loan
beneficiaries. This study is very significant as it is undertaken in a region that has seen
mushrooming of higher educational institutions and one that has seen a great number
of student migrated from other parts of the country for educational purpose alone.
Banks are also looking into areas where a small intervention or improvement would
do a world of wonders in terms of both the efficiency of service delivery as well in
enhancing the repayment levels of education loans, which to date is not as positive as
it should be. In this situation, studies examining the educational loan landscape in

3
Irinjalakuda is a significant opportunity for researchers, bankers borrowers , and the
government to understand the status of educational loan sector, understand the attitude
and perceptions of bankers and borrowers, and the government to understand the
status of educational loan sector, understand the attitude and perceptions of bankers
and borrowers about educational loans, expand knowledge about the criteria adopted
by banks for sanctioning loans, problems faced during the criteria adopted by banks
for sanctioning loans, problems faced during the loan process, which is our key
concern. To achieve this end, the researcher identified 4 banks, both public sector and
private sector banks in Irinjalakuda, Kerala to examine the performance and
perception of the bankers and their borrowers about educational loans.

1.4 OBJECTIVES OF THE STUDY

 To analyze the perception of banker‟s and beneficiaries towards educational

loan.
 To evaluate the education loan scheme in terms of its i) awareness, ii)
eligibility, iii) adequacy, from the perspective of bankers and beneficiaries.
 To find out the problems encountered by bankers and beneficiaries in
relation to education loan scheme.
 To assess the level of satisfaction of the bankers and borrowers with regard
to the prevailing education loan scheme.

1.5 RESEARCH METHODOLOGY

The methodology part includes the process of selecting the proper sampling
method, data collection procedure, choosing the appropriate tools for the
measurement and statistical techniques used to analyze the data. Methodology is the
systematic, theoretical analysis of the methods applied to a field of study. The
investigator gives a description of the sample, measuring tools, procedure of data
collection and statistical treatment of data in details. It is a systematized effort to find
out the solution of the problem.

1.5.1 RESEARCH DESIGN

Research design is the conceptual structure within which research is

conducted; it constitutes the blueprint for the collection, measurement and analysis of

4
data. Research design provides an outline of what the researcher is going to do in
terms of framing the hypothesis, its operational implications and the final data
analysis. They use behavioral observations on a limited number of subjects, make
decisions, predictions regarding the behavior of the large group, represented by the
subjects. Researchers are designed to proceed in an orderly manner. The research was
performed at study of “Perception of Banker‟s and Beneficiaries towards educational
loan”.

1.5.2 SAMPLE SIZE

The sample size undertaken in this research study is 100; 50-from the bankers
and 50 – from beneficiaries. The study id descriptive in nature. This type of research
describes what exists and may help to uncover new facts and meaning.

1.5.3 SAMPLING METHOD

CONVENIENCE SAMPLING:
Convenience sampling (also known as availability sampling) is a specific type
of non-probability sampling method that relies on data collection from population
members who are conveniently available to participate in study. It is a type of
sampling where the first available primary data source will be used for the research
without additional requirements. In other words, this sampling method involves
getting participants wherever you can find them and typically wherever is convenient.
All subjects are invited to participate.

DATA COLLECTION METHOD:

Primary and secondary data are used for the conceptualization of idea. The
secondary data was collected from reference books, magazines and newspapers,
articles from internet etc.

PRIMARY DATA
Primary data means original data that has been collected specially for the
purpose in mind. It means someone collected the data from the original source first
hand. Data collected this way is called primary data. The people who gather primary
data may be an authorized organization, investigator or enumerator. Those who gather
primary data may have knowledge of the study and may be motivated to make the

5
study a success. These people are acting as a witness so primary data is only
considered as reliable as the people who gathered it.

SECONDARY DATA
Secondary data is the data that have been already collected by and readily
available from other sources. Such data are cheaper and more quickly obtainable than
the primary data and also may be available when primary data cannot be obtained at
all. Usual sources of secondary data are projects, reports, websites, journals,
magazines etc.

TOOLS FOR ANALYSIS:

Statistical Tools aged for the analysis of data:

1. Percentage
2. Diagrammatic presentation

1.6 LIMITATIONS OF THE STUDY

The following factors were the major constraints in undertaking the study.

1) The study was restricted to the perception of banker‟s and beneficiaries

towards educational loan.
2) The sample of 50 is difficult to generalize the results.
3) The data collected was through questionnaires and it has its own limitations.
4) Findings may be influenced by personal bias of the respondents.
5) The time factor was a major limitation in conducting the study.

6
 CHAPTER – 2

REVIEW OF LITERATURE

7
2.1 REVIEW OF LITERATURE

In this chapter, the researcher gives a detailed account on what has been
written and published in the area of priority sector lending and educational loans by
accredited agencies, scholars and researchers. To achieve this end, the researcher has
surveyed literature on the issue of priority sector advances made by commercial bank.
In all about 100 articles, both published and unpublished articles has been reviewed to
understand the key focus areas of research in this domain to identify research gaps,
develop research questions for further empirical investigation. In this section that
follows, researcher presents an overview of some of the key works on priority sector
advances carried out at the National level.

Studies on educational loan sectors: INDIA

KAMATH (2000) illustrated the need, relevance and significance of providing

financial assistance to deserving students of higher education in India. The model
suggested that it is the duty of the government and the commercial banks to provide
financial help to students to pursue higher education and their economic status should
have no binding on the selection of the students. The model also suggested that banks
take up PSL (Priority Sector Lending) seriously and with regard to educational loans,
bankers should work out affordable terms and conditions to ensure that the access to
such financial assistance is not influenced by the socio-economic profile of the
applicants.

SRINIVASAN (2003) analyzed the process involved in selecting a beneficiary for

educational loans to pursue higher education in the study area New Delhi. The probity
model is used for statistical analysis and certain issues like background of the
problematic borrowers, the problems faced by the applicants, and measures needed to
overcome inadequacies associated in securing educational loans. The study has also
demonstrated that a student opting to continue his or her post graduate education after
under graduation prefer education loan than those who go for under graduate. With
respect to bankers, the study found that banker prefers to sanction loans to students of
government-run professional colleges and universities. However, prior work
experience of the students is not taken into consideration for grating educational loan.

8
The study also points out the reluctance lying on the part of the private sector banks to
provide educational loans.

SHATRUGNA COMMITTEE(2004) examination of the pattern of utilization of the

educational grants to the higher education sector suggested that the UGC may institute
newer mechanisms of providing grants, perhaps in the form of a matching grant to
motivate universities to generate its own resources. The committee recommendations
are more or less the same in regard to the aided deemed universities.

TILAK (2005) analyzed the importance of public funding for higher education in
India. The author observed that the costs of higher education can be categorized into
three components such as, student welfare costs, academic support cases, and
academic costs. The author also highlighted the readiness of the industrial sector to
make huge investment in the higher education and research development and hence
recommended that efforts should be taken to raise funds from non-government
sources. Further, the author posited the dominant role played by the state and the
union government in financing higher education. UGC also should institute
mechanism to monitor and govern the growth of universities and the institutes of
higher education. Finally, the author concluded that all forms of financial assistance
or grants provided to the higher education from internal and external sources should
be completely transparent.

AKEEM A (2006) Student loan indebtedness has been increasing over time,
especially for non-white pharmacy students. Further research should be done to
examine other factors that might influence student debt load, work contributions and
choice of practice settings. The affordability of pharmacy education for students and
how salaries may or may not help off-set these costs also should be examined closely.

MURALI PATIBANDLA (2008) examined the contribution of higher education in

making India successful in being part of globally traded services, with special
reference to software engineering. The author has found that the institutional structure
has major role in producing a quality engineer to match to the current needs. This
stand as a remarkable achievement based on the rapid change in both job
requirements and the role of people in higher education. The author contented that

9
while it is too early to assess whether the currently emergent needs, particularly in
project management, research, and entrepreneurship, will meet the current structure.
They argue that the state‟s role as regulator will be problematic. The state has so far
proved its capabilities of being an effective regulator. They also argue that new
regulatory capabilities are required for the state to address the evolving problems.
Department of Banking supervision (2006) the analysis also found that the during the
reform period banking sector mainly gone in favor of the medium and large farmers
which is against the core principle of equity.

GANHDHAR (2010) observed that educational loan segment is becoming popular

among the students of higher education in India. The author contended for the need to
work on the weakness and shortages of the scheme and suggested several measures to
be undertaken by the authorities.

BABLI DHIMAN (2011) observed that education is the backbone of a cultured

society, but it has become more commercial or money-making and in order to ensure
the best possible education, it is an expensive affair. Therefore, the educational loans
are biggest support for the needy persons. The study primarily focused on
professional education through banking services (loans) which includes the role of
various banks in providing education loan service and its effect on the education
system of Indian economy. The comparative part of the banking services (educational
loans) provided by the various banks shows the significant effect on education sector
prior and post availability of banking services. The study found that there is a
significant effect of educational loans in development of Indian educational sector
because educational institutes started increasing after education loans were
introduced. So that students are also benefited from education loan schemes. The
study observed that SBI and PNB both have educational loans income at increasing
rate which is the significant part of the total income. Therefore, the banks should have
to encourage more education loans for the growth of the bankers as well as for the
education developments.

THE TIMES OF INDIA (2012) report on educational loan observed that some banks
make the educational loan a real business despite the good intentions of the central
government. They expect the payment of interest for the educational loan in the

10
moratorium period itself, expecting a student to start repaying the loan still in college.
Sometimes the parent has to take the additional burden of repaying the student loan if
their daughter is married soon after graduation in order not to embarrass the groom.

REKHA GOEL (2013) suggested that the procedure and processes associated with
educational loans should be made easier for the students and their parents; low
interest rates and quicker processing of applications and disbursement are critical to
start the lending process in a positive state.

2.2 THEORETICAL FRAMEWORK

In India education is considered crucial to improve social standard. Good
education paves way for successful career. The education in India is structured in such
a way that the period covering pre-school to post forms the monumental proportion.
As per the report of a world bank, there are more than 7,40,000 schools with more
than 3.6 million teachers working full time. The under graduate and post graduate
courses are offered by more than 175 universities and nearly 6000 colleges affiliated
to these universities in India. Rise in cost of education has created deep worry for
students and parents in Indian society.

An educational loan has become inevitable for a student to carry on desired

educational to meet out the high tuition fees and other associated fees. Banks help
financially the students through coverage of all the expenses of the course. The
Reserve Bank of India provide greater thrust through extension of educational loans
and also government support by taking over the interest of moratorium period for
students whose family income is less than 2.5 lakhs per annum. Besides this, banks
ensure loans to meritorious students so that they do not turn into defaulter (Ghosh and
Mousami, 2008).

EDUCATIONAL LOAN AND ITS COMPOSITION

Educational loan of banks and financial institutions is a special purpose loans
available to cover the entire expenses of any kind of higher degrees or specialized
courses. In India educational loans of bank include the fee payable to the college,
school or hostel. It also permit loans for exam fees, lab fees, library fees, caution
deposits and institutions refundable deposit. It extends loans for building fund aided
with institutional bills, purchase receipt of books, equipment‟s, uniforms and

11
instruments. Abroad studies travel expenditure; procurement of computer and other
essential expense for completion of project work and thesis are also included.

CRITERIA OF EDUCATIONAL LOAN

Banks offer financial help to pursue desired course and its support is enriched
with inclusion of wide range courses. The loans are provided for the under graduate
and post graduate courses of different disciplines such as management, MCA,
architecture, engineering, hotel management, arts and commerce, pure sciences,
agriculture, fine arts. Educational loans are given based on the reputation and
affiliation of the institution under which is course is offered. Another criterion is that
the applicant besides residing in India should have been admitted into approved
course or universities that are included in bank‟s list. But there is difference in
covering the expenses among the banks. Some of them provide entire amount whereas
some may not.

DOCUMENTS REQUIRED FOR EDUCATION LOAN

Banks requires certain documents for providing education loan. They include income
proof of the co-applicant, birth certificate for age proof, latest mark sheet for
residence proof, admission letter of the institute, document explaining the course cost.
In case of abroad studies the students are required to provide recommendation from
the related university‟s head of the department, approved documents of visa and travel
and also GRE/GMAT/SAT scores. Additionally the applicant should submit a
declaration or affidavit that the student is not getting financial support from other
banks and any other necessary documents. Education loans have been beneficial in
providing expenses in order to pursue desired course.

FACTORS AFFECTING EDUCATIONAL LOAN

1. Eligibility of loan: before applying for an education loan, you must know the
eligibility criteria as different banks have their own set of terms and
conditions. To apply for a loan, you need to be an Indian Citizen and should
have taken admission in a recognized college.
2. If the income of the guardian is not sufficient, then banks often ask for
collaterals for sanctioning a loan amount between INR 4 and INR 7 lakh. Any

12
 amount more than INR 7.5 lakh requires joint borrowers along with some
tangible security collateral of equivalent value.
3. Interest rate and repayment period: After your admission to a certain
university for a particular course is confirmed, it is better for you to evaluate
all available loan options. It is a must to compare the rate of interest provided
by different banks as well as the time of repayment allowed.
4. According to available updates, a loan of INR 4 lakhs or less comes with an
interest of 10%-15% payable within 3 years, while a higher amount is usually
given at lower interest rates, but with a longer repayment period of 5-7 years.
5. Some banks generally ask for a guarantor in case of a default on the loan
amount. For student, this person is usually their parents or a guardian.
6. Future EMI burden: Student at the beginning of their career don‟t earn much,
hence they should opt for longer loans tenure that goes up to 10-12 years. This
helps in a big way for repayment burden on the student with relatively smaller
EMIs.
7. Check existing loan amount: If any of your guardians or parents have already
taken other loans, you should consult them before burdening them with more
loans. And if the existing amount of loan is small, then there is no reason for
you to worry. If the loan amount is huge, then it is better to avoid another big
loan simultaneously. This is one of the reasons why you need to have good job
opportunities after graduating so that you would be able to repay the education
loan on time.
8. Read terms and conditions well: Terms and conditions for sanctioning loan
vary from bank to bank. Many of the norms mentioned in terms and condition
section might not be conveyed to you at the time of loan disbursal, but you
must check them all before going ahead with the loan. Read the clauses
carefully and make sure you are aware of all associated charges such as the
processing fees, charges involved in pre-payment or late payment of EMIs etc.
9. Special Schemes: There are many banks in India, especially government
owned banks that offer special schemes for girl students who opt for education
loans. Even, some banks offer I percent lower interest rate for girl student for
their higher studies. In some cases, the government offers the subsidy on the
interest levied over the loan amount to girl students during the tenure of their
studies. Hence, it is wise to check with your bank about all special schemes.

13
 CHAPTER – 3

INDUSTRY PROFILE

14
INTRODUCTION

Education, in the general, is any act or experience that has a formative

effective on the mind, character, or physical ability of an individual. In its technical
sense, education is the process by which society deliberately transmits its accumulated
knowledge, skills and values from one generation to another. Education can also be
defined as the process of becoming an educated person. Education is a process of
cognitive cartography, mapping your experience and finding a variety of reliable
routes to optimal states when you find yourself in non-optimal states. Educational
persons refer to persons who have access to optimal states of mind regardless of the
situation they are in. That persons are able to perceive accurately, think clearly and act
effectively to achieve self-selected goals and aspirations.

SIGNIFICANCE OF EDUCATION

The role of education in facilitating social and economic progress is well

recognized. It opens up opportunities leading to both individual and group
entitlements. Education is the most crucial input for empowering people especially
youth with skills and knowledge and giving them access to productive employment in
future. Improvements in education have not only expected to enhance efficiency but
also argument the overall quality of life.

Education makes a worthy contribution to our lives, by making us responsible

citizens. We get to know our history and culture through education and imbibe us to
understand our duties as a citizen and encourage us to follow them. There is no
denying fact that an educated person is a better citizen.

Education is futuristic in character and it ensures that the one who receives
good education gets a secure future. Our productivity will be increased in future by
acquiring new skills and talents through education. We find ourselves in the most of
the competitive jobs, courtesy the right training and education. The importance of
education is evident by the dizzy heights we achieve in life.

15
 The significance of education, for a great part, lies in its ability to open new
vistas for us. It expands our outlook and teaches us to be tolerant towards other views.
An educated person will find it easier to understand a different point of view than the
one who is uneducated. Education broadens our mental landscape and is the way
forward to greater enlightenment, the ultimate goal of every human in life.

Education spreads awareness, informing us about our rights and the services
that we can access. It also teaches us to differentiate between right and wrong. For
most part of our lives, we falter in dichotomizing right and wrong, but the right
education gives us the right answers.

Education is significant, because it enable us to take the right decisions and

prevents losses. Decisions throughout our lives and sometimes, decision-making can
be a very tough and challenging process. It can leave us perplexed and often
wondering, as to what is the right choice.

An educated person is a confident person. Education fosters a positive

outlook and allows us to believe in ourselves. Self-belief is the most wanted trait in a
human being and education leads us towards relying on ourselves, making us believe
that we are ready to take on the world.

The fact that education should be meaningful for life cannot be contested.
However, the term „meaningful for life‟ can be interpreted in economic, social, and
intellectual terms. The economic meaning of education means that education should
enable an individual to acquire certain skills that help him to get a decent income
through self-employment or through working on some remunerative job. It might thus
mean that education should improve one‟s own economic status, and in the process,
the economic status of the country. Hence, education should equip an individual for
some career that has significant economic advantages either in the short run, medium
run or in long run. This is what is meant by „relevant education‟. Vocationalization
assumes a special significance under the career oriented program at the graduate and
post graduate stages, as it is at these stages that the students need to enter into the
world of work and into the income earning activities to support the family.

16
EDUCATION IN INDIA

Education in ancient India was highly advanced as evident from the centers of
learning that existed in the Buddhist monasteries of the 7th century BC up to the 3rd
century AD Nalanda. Until 18th century, India had three distinct traditions of
advanced scholarship in the Hindu gurukulas, the Buddhist viharas, and the Quaranic
madarasas, before the British set up a network of schools to impart western education
in English medium in the 19th century. The first such college to impart western
education had founded in 1818 at Serampore near Calcutta. Over the next forty years,
many such colleges had established in different parts of the country at Agra, Bombay,
Madras, Nagpur, Patna, Calcutta and Nagapattanam. In 1857, three federal examining
universities on the pattern of London University were set up at Calcutta, Bombay and
Madras. The existing 27 colleges were affiliating to these three universities. Later,
more universities were established. At the time of independence in 1947, there were
19 universities and several 100 affiliated colleges.

Education in India is provided by public schools (controlled and funded by

three levels; central, state and local) and private schools. Under various articles of the
Indian constitution, free and compulsory education is provided as a fundamental right
to children between the ages of 6 and 14. The approximate ratio of public schools to
private schools in India is 7:5. India has made progress in increasing the attainment
rate of primary education. In 2011, approximately 75% of the population, aged
between 7 and 10 years, was literate. India‟s improved education system is often cited
as one of the main contributors to its economic development. Much of the progress,
especially in higher education and scientific research, has been credited to various
public institutions. While enrollment in higher education has increased steadily over
the past decade, reaching a Gross enrollment ratio of 24% in 2013, there still remains
a significant distance to catch up with tertiary education enrollment levels of
developed nations, a challenge that will be necessary to overcome in order to continue
to reap a demographic dividend from India‟s comparatively young population.

In January 2019, India had over 900 universities and 40000 colleges. In
India‟s higher education system, a significant number of seats are reserved under
affirmative policies for the historically disadvantaged scheduled castes and scheduled
tribes and other backward castes. In universities, colleges, and similar institutions

17
affiliated to the federal government, there are a maximum 50% of reservations
applicable to these disadvantaged groups, at the state level it can vary. Maharashtra
had 73% reservation in 2014, which is the highest percentage of reservations in India.

EDUCATION IN KERALA

Schools and colleges are mostly run by the government, private trusts, or
individuals. Each school is affiliated with the Indian certificate of secondary
education, the central board of secondary education, Kerala state education board or
the NIOS (National Institute of Open School). English is the language of instruction
in most private schools, while government-run schools offer English or Malayalam as
the medium of instructions. Government-run schools in the districts bordering
Karnataka and Tamil Nadu also offer instruction in Kannada or Tamil languages. A
handful of government Sanskrit schools provide instructions in Sanskrit supplemented
by Malayalam, English, Tamil or Kannada. After 10 years of secondary schooling,
students typically enroll at higher education system in one of the three streams-
liberal, commerce and science. Upon completing the required coursework, students
can enroll in general or professional degree programs. Kerala topped the education
development index among 21 major states in India in year 2006-2007. In January
2016, Kerala became the 1st Indian state to achieve 100% primary education through
its literacy program Athulyam.

FUTURE SCOPE OF EDUCATION

Every year we are seeing a change of trends in almost all sectors and the case
is no different in the field education. This is one of the areas we see a lot of
remarkable change every year. It makes serious impacts on a student‟s perspective on
education and the learning outcomes. It depends on a lot of factors including available
resources, what options are affordable for a larger society and the changing needs or
demands of the present generation students. Education trends are dynamic in nature.

1. Personalized Learning
This is going to be a notable trend of the year as students can learn without
worrying about device, location and timing constraints. This even changes the way of
education delivery or learning process and students can learn without a barrier of their
strength, weakness or pace of understanding. This is, in fact, a game changer for

18
students with special needs as they get the flexibility or freedom to learn through
audio books to overcome their limitations of textbook methods.

2. Online Education
With the widespread acceptance and influence of mobile gadgets, providing
online education is a concept which can be delivered a lot easy than ever before. Even
working professionals or students with problems of transportation can access
education without confinement. This proposes a platform to provide education
through videos and tutorials to the students of rural areas where they can get it at
affordable rates. Moreover, value-added certifications offered online can enhance the
employability of the students.

3. Integrated Learning Solutions

It is not a practical idea for schools to wait till 100% digitalization to give
students the taste of modern education. Integrated learning solutions are now an
accepted reality in most schools. They are aiming to provide optimum digital
infrastructure requirement while keeping traditional textbooks as the base.

4. Augmented Reality
Knowledge retention improves drastically when learning involves audio, video, and
visuals which is lacking in traditional lectures. This is one reason why schools have
accepted virtual reality with both hands. In fact, virtual reality is not only about seeing
something but about experiencing the subject which helps students to learn with better
understanding. Teachers can find this as a feasible option to teach them complex
concepts with comparatively a lesser time with the additional benefit to knowledge
retention. Augmented reality can take learning to a new level as the students just
experience the subject.

19
 CHAPTER - 4

DATA ANALYSIS AND

INTERPRETATION

20
DATA ANALYSIS

Data analysis is defined as a process of cleaning, transforming and modeling data to

discover useful information for business decision making. The purpose of Data Analysis is to
extract useful information from data and taking the decision based upon the data analysis.

Types of data analysis: Techniques and methods

There are several types of data analysis techniques that exists based on business and
technology. However, the major data analysis methods are:

 Text Analysis
 Statistical Analysis
 Diagnostic Analysis
 Predictive Analysis
 Prescriptive Analysis
Interpretation of data is the process of reviewing data through some predefined
processes which will help assign some meaning to the data and arrive at a relevant
conclusion. It involves taking the result of data analysis, making inference on the
relations studied and using them to conclude.

21
 Table showing different AGE groups

Table 4.1

AGE FREQUENCY PERCENTAGE

Less than 20 12 24%
20 - 25 30 60%
More than 25 8 16%
TOTAL 50 100%

Chart related with different age groups

Chart 4.1

FREQUENCY

16%

morethan25
lessthan 20
24% 20-25
60%

Interpretation: 60% of the beneficiaries come under the category between 20-25.Only 16%
of the beneficiaries come under the category above 25.

22
 Table showing GENDER groups

Table 4.2

GENDER FREQUENCY PERCENTAGE

Female 16 32%
Male 34 68%
Prefer not to say 0 0%
Total 50 100%

Chart related with GENDER

CHART 4.2

32% female
male
prefer no to say

68%

INTERPRETATION: 68% of the beneficiaries are in the male category and 32% of the
beneficiaries are in the female category.

23
 Table showing MARITAL STATUS of beneficiaries

TABLE 4.3

Marital Status Frequency Percentage

Single 40 80%
Married 10 20%
Total 50 100%

Chart related to marital status

Chart 4.3

frequency

20%

single
married

80%

Interpretation: 80% of the beneficiaries are singles only 20% of them are married.

24
 Table showing the educational status of beneficiaries

TABLE 4.4

Education completed Frequency Percentage

Up to SSLC 8 16%
Plus Two/Diploma 13 26%
UG 19 38%
PG 10 20%
Total 50 100%

Chart 4.4 related to table 4.4

frequency
20

18

16

14

12

10
19 Column1
8

6 13
10
4 8

0
uptoSSLC plus two/diploma ug pg

Interpretation: Analysis shows that 38% of the beneficiaries have completed UG and only
16% of them have completed SSLC at the time of availing the
educational loan

25
 Table showing PRESENT STATUS of beneficiaries

Table 4.5

PRESENT STATUS FREQUENCY PERCENTAGE

Searching For A Job 6 12%
Student 31 62%
Employed 13 26%
Total 50 100%

CHART 4.5 related with present status of beneficiaries

Frequency

12%

26%

searching for a job

student
employed

62%

Interpretation : The present status of the beneficiaries shows that 62% of them are student
and only 12% of them are searching for job.

26
 Table showing PARENT’S QUALIFICATION of beneficiaries

TABLE 4.6

Qualification Frequency Percentage

No formal education 9 18%
Up to 12th 14 28%
UG 14 28%
PG 7 14%
Professional 6 12%
Total 50 100%

CHART 4.6 related to qualification

Frequency
16

14

12

10

8
14 14 Frequency
6

4 9
7
6
2

0
no formal upto12th UG PG Professional
education

Interpretation: 28% of the parents are qualified up to 12th and UG; only 6% of the parents
are professionals.

27
 Table showing OCCUPATION of the parent

TABLE 4.7

Occupation Frequency Percentage

Farmer 7 14%

Business 8 16%
Government employee 7 14%
Private employee 17 34%
Profession 5 10%
Retired 4 8%
Others 2 4%

Total 50 100%

CHART 4.7 related to occupation

FREQUENCY
18
16
14
12
10
8
6
FREQUENCY
4
2
0

Interpretation: 34% of the parents are private employee only 4% of the parents come
under other category.

28
 RECOMMENDATION OR ANY SUCH INFLUENCE NEEDED TO GET LOAN

TABLE 4.8

Recommendation Frequency Percentage

Yes 26 52%
No 24 48%
Total 50 100%

CHART 4.8 related to the above table

Frequency

48% yes
52% No

Interpretation: 52% of the beneficiaries have influence for availing educational loan only
48% have no influence.

29
 Table showing reasons for availing loan

TABLE 4.9

Strongly Strongly
Disagree Neutral Agree
disagreed Agree
Perception
Freq. % Freq. % Freq. % Freq. % Freq. %

Parent’s income
9 18 12 24 15 30 7 14 7 14
Is not sufficient

To create a
feeling of 4 8 9 18 18 36 13 26 6 12
commitment
To avoid
dependence on 7 14 10 20 12 24 7 14 14 28
parent

CHART 4.9related to table 4.9

20
18
18
16 15
14
14 13
12 12
12 strongly disagree
10 Disagree
10 9 9
Neutral
8 7 7 7 7
6 Agree
6
4 Strongly agree
4
2

0
Parent's income is not To create a feeling of To avoid dependence on
sufficient commitment parent

Interpretation: Analysis shows that 30% are neutral about the insufficiency of parent’s
income, 38% are neutral that it is just to avail loan granted by bank, 36% are
again neutral about the commitment and 28% strongly agree that it is avoid
dependence on parent. These are the major reasons for availing loan.

30
WHETHER THE BENEFICIARIES GOT THE TOTAL AMOUNT OF LOAN THEY
APPLIED FOR

Table 4.10

Total amount Frequency Percentage

Yes 28 56%
No 22 44%
Total 50 100%

Chart 4.10 related with above table

Frequency

44%
yes
no
56%

Interpretation: 56% of the beneficiaries got the total amount of loan they have applied for
only 44% of them did get the full amount.

31
 ADEQUACY OF EDUCATION LOAN TO MEET THE EXPENDITURE

TABLE 4.11

Expenditure Frequency Percentage

Yes 35 70%
No 15 30%
Total 50 100%

Chart 4.11 related to expenditure

Frequency

30%

yes
no

70%

Interpretation: 70% of the beneficiaries accept that the education loan was adequate to meet
the expenditure only 30% of them declined it.

32
 Table showing REPAYMENT of loan

TABLE 4.12

Repayment Frequency Percentage

Parents 19 38%
Siblings 1 2%
Guardian 5 10%
Students 25 50%
Total 50 100%

Chart No: 4.12 showing the repayment

frequency
30

25

20

15
frequency
25
10 19

5
5
0 1
PARENTS SIBLINGS GUARDIAN STUDENTS

Interpretation: 50% of the education loan is repaid by them only 2% of them are repaid by
their brother/sisters.

33
 SATISFACTION WITH THE OVERALL SERVICE PROVIDED BY THE BANKS

TABLE 4.13

Satisfaction Frequency Percentage

Very good 8 16%
Good 29 58%
Barely accepted 11 22%
Poor 0 0%
Very poor 2 4%
Total 50 100%

Chart 4.13 showing the satisfaction level of beneficiaries

Frequency
35

30

25

20

15 58% Frequency

10

5 22%
16%
0 0 4%
very good good barely poor very poor
acceptable

Interpretation: 22% are barely acceptable with the overall service provided by the bank only
4% are very poorly satisfied.

34
 TABLE SHOWING THE MEDIUM USED TO SPREAD INFORMATION

TABLE 4.14

Not at all Not very Somewhat Occasional by

Very useful
useful useful useful useful
Medium
Freq. % Freq. % Freq. % Freq. % Freq. %

Newspaper 12 24% 7 14% 16 32% 8 16% 7 14%

TV 2 4% 11 22% 17 34% 13 26% 7 14%

Social media 3 6% 6 12% 15 30% 7 14% 19 38%

Pit notices 7 14% 14 28% 20 40% 6 12% 3 6%

CHART 4.14 related to the medium used to spread information

25

20
20 19
17
16
15 not at all useful
15 14
13 not very useful
12
11 somewhat useful
10 occasionally useful
8
7 7 7 7 7
6 6 very useful
5
3 3
2

0
newspaper TV SocialMedia Pit notices

Interpretation: Analysis show that 32% say that newspaper is somewhat useful,34% says
that TV is somewhat useful, 38% says that social media is very useful,40%
says that pit notices is useful to spread the information regarding the
educational loan.

35
 TABLE SHOWING THE PERCEPTION OF BENEFICIARIES TOWARDS
EDUCATIONAL LOAN
TABLE 4.15
Strongly
disagree neutral Agree Strongly agree
Perception disagree
Freq. % Freq. % Freq. % freq % Freq. %
When it is
available it is 9 18 12 24 15 30 7 14 7 14
better to use
Students to get
quick 4 8 16 32 19 38 7 14 4 8
employment
Educational
loan should be
given only to 4 8 9 18 18 36 13 26 6 12
the poor
students
Interest rate
should be 7 14 10 20 12 24 7 14 14 28
reduced
Poor recovery
rate is only due 7 14 9 18 19 38 7 14 8 16
to bank

CHART 4.15 RELATED TO THE PERCEPTION OF BENEFICIARIES

20 19 19
18
18 16
16 15
14
14 13
12 12
12 10
10 9 9 9 STRONGLY DISAGREE
8
8 77 7 7 7 7 7
6 DISAGREE
6 4 4 4
4 NEUTRAL
2 AGREE
0
STRONGLY AGREE
When it is students to educational interest rate poor
available it is get quick loan should should be recovery rate
better to use employment be given only reduced of
to the poor educational
students loan is due to
bank

Interpretation: Analysis shows that 30% are neutral about the usage of loan when it is available
to use, 38% are neutral about the students to get quick employment, 36% stands neutral about the
educational loan should be given only to the poor students, 28% strongly agree that the interest
rate should be reduced, 38% are neutral that poor recovery of educational loan is due to bank.
These are the overall perception of the beneficiaries regarding the educational loan.

36
 TABLE SHOWING THE AREA OF THE BANK

TABLE 4.16

Area Frequency Percentage

Urban 17 34
Semi-urban 22 44
Rural 11 22
Total 50 100

CHART 4.16 RELATED TO THE AREA OF BANK

frequency

22%

34%

urban
semi-urban
rural

44%

Interpretation: Analysis shows that 44% of the bankers are from semi-urban area.

37
 TABLE SHOWING THE PROBLEMS FACED RELATING TO EDUCATIONAL
LOAN BY THE BANKERS

TABLE 4.17

Always Often Sometimes Rarely Never

Problems faced
Freq. % Freq. % Freq. % Freq. % Freq. %
Inadequate
security from 6 12 18 36 16 32 6 12 4 8
borrowers
Complexity in
education loan 10 20 12 24 23 46 1 2 4 8
procedure
Repayment of
loan and interest 12 24 14 28 15 30 6 12 3 6
rate
Inadequate
support from 7 14 11 22 16 32 6 12 10 20
parents

CHART 4.17 related to the problems faced by the bankers

25
23

20
18
16 16
15
15 14 ALWAYS
12 12
11 OFTEN
10
10 SOMETIMES
7 RARELY
6
5 NEVER

0
inadequate complexity in repament of loan inadequate support
document from educational loan and interest rate from parents
borrowers procedure

Interpretation: Analysis shows that 36% due to inadequate documents from borrowers, 46%
due to complexity in education loan procedure, 30% due to the failure of
repayment of loan and interest rate and 32% due to inadequate support from
parents.

38
 TABLE SHOWING THE PROBABLE REASONS FOR LOW RESPONSE OF
APPLICATION

TABLE 4.18

Strongly Strongly
Disagree Neutral Agree
Probable reasons disagree Agree
Freq. % Freq. % Freq. % Freq. % Freq. %
People do not
11 22 16 32 8 16 11 22 4 8
have awareness
People are not
willing to educate
5 10 16 32 14 28 9 18 6 12
their children by
getting loan
Bankers have not
communicated to
the people
7 14 9 18 21 42 8 16 5 10
properly about
education loan
offered.
Bankers are not
showing much
5 10 14 28 14 28 12 24 5 10
interest on
education loan
Preferring
personal
borrowing than 8 16 8 16 20 40 8 16 6 12
for educational
loan

39
 CHART 4.18 Related to the reasons for low response

25

42%
40%
20

32% 32%

15 14 28%

24%
22% 22% STRONGLY DISAGREE
10 18% 18% DISAGREE
16% 16% 16% 16%
14% NEUTRAL
12% 12% AGREE
10% 10% 10% 10%
5 8% STRONGLY AGREE

0
PEOPLE DO NOT PEOPLE ARE NOT BANKERS HAVE BANKERS ARE PEOPLE PREFER
HAVE WILLING TO NOT NOT SHOWING PERSONAL
AWARENESS EDUCATE THEIR COMMUNICATED MUCH INTEREST BORROWING
CHILDREN BY TO THE PEOPLE ON LOAN THAT
GETTING LOAN PROPERLY ABOUT INSTITUTIONAL
EDUCATION LOAN BORROWING FOR
OFFERED B EDUCATIONAL
LOAN

Interpretation: 32% is where people do not have awareness and people are not willing to
educate their children by getting loan, 42% is due to no proper
communication to the people properly about education loan, 28% due to
lack of interest on education loan, 40% where people prefer personal
borrowing than institutional borrowing are reasons for low response of
application in educational loan.

40
 TABLE SHOWING PERCEPTION OF BANKERS TOWARDS

EDUCATIONAL LOAN

TABLE 4.19

Strongly Strongly
Disagree Neutral Agree
Disagree Agree
Perception
Freq. % Freq. % Freq. % Freq. % Freq. %
It induces the
candidates to
8 16 8 16 24 48 6 12 4 8
be
accountable
It should be
given only to 4 8 21 42 18 36 3 6 4 8
poor students
Government
unnecessarily
pressuring
11 22 6 12 26 52 6 12 1 2
banks to
award more
loan
It is huge
burden to the 2 4 20 40 15 30 12 24 1 2
bank
Interest rate
should be
lower 7 14 7 14 20 40 5 10 11 22
compared to
other loan

41
 CHART 4.19 RELATED TO THE PERCEPTION OF BANKS TOWARDS
EDUCATIONAL LOAN

30

26
25 48%

42%
40% 40%
20
36%

30%
15 strongly disagree
24% disagree
22% 22%
neutral
10
16% agree
14%
12% 12% 12%
10% strongly agree
5 8% 8% 8%
6%
4%
2% 2%
0
it induces the it should be government it is huge interest rate
candidate to be given only to unnecessary burden to the should be
accountable poor students pressuring bank lower
banks to award compared to
more loan other loan

Interpretation: Analysis shows that 48% are neutral with the inducement of the candidate to
be accountable, 42% disagree that it should be given only to poor students,
52% stands neutral about the government’s unnecessary pressuring of banks
to award more loan, 40% disagree that it is huge burden to the bank, 40% are
neutral that the interest rate should be lower compared to other loan. These
are the overall perception of bankers regarding educational loan.

42
 CHAPTER- 5

FINDINGS, SUGGESTION

AND

CONCLUSIONS

43
5.1 FINDINGS
5.1.1 BANKERS PERCEPTION

In this section, the perception of bankers with respect to the educational loan has been dealt
with. The following points such as Bankers General Information, Information sources,
Reasons for low response, Problems faced and overall perception on educational loan have
been dealt in detail.

 Bank branch are mainly located in the semi-urban area.

 46% of the bankers process their loan within 10-15 days; only 14% of them take more
than 30 days to sanction it.
 44% of the bankers disburse the loan within 4-5 days; only 10% of them take more
than 7 days to disburse the sanctioned loan.
 Failure in repayment of loan and interest rate and complexity in education loan
procedure (10%) are always the main reason for the problems faced relating to
educational loan.
 Majority of the bankers strongly agree that the borrowers prefer personal borrowing.
However 36% of them disagree that it is not because of unawareness of the borrowers
or unwillingness to educate their children by getting loan is the reason for the low
number of applications for educational loan.
 Majority of the bankers strongly disagree that the loan should be given only to poor
students and the government intervention to grant more loans.

5.1.2 BORROWERS PERCEPTION

In this section, borrower’s perception towards educational loan has been dealt with. The
following point such as borrower’s personal profits, reasons for opting educational loan,
borrower’s level of satisfaction, awareness and overall perception has been dealt in detail.

 68% of the borrowers included in this study are male. Majority of the borrowers are in
the age group of 20-25 years. This result is quite with the general trends that prevail
education loan sector where young graduates are desirous of pursuing higher studies
for better and faster career growth.

44
 Educational qualifications, majority of the borrowers has completed their graduation
i.e., UG (38%) and the rest has completed their school education i.e., plus
two/diploma (26%). This result reveals that the educational loans are sanctioned by
the banks to pursue both the graduate and post graduate studies almost equally.
 The banks prefer to sanction educational loans to students who are pursuing technical
and professional degrees that provide good career opportunities to the students and in
turn, repayment of educational loans. Respondents based on the present status shows
that 62% f them students, a little less 12% of them are searching for their jobs after
completing their studies. However, a 26% are gainfully employed.
 Most of the borrower’s parents either completed 12th or completed their UG. Only a
significant proportion has completed their PG or professional degrees. The real
income of borrowers is essentially important to study the liquidity position. Limited
income people have no ability to save money at a time for meeting the increasing
costs and hence they have to seek credit sources for meeting up subsistence and
growth needs.
 Educational loans are sanctioned to all economic statuses, say the children of the
salaries, farmers, business professionals and daily wagers, however the proportion
varies.
 52% of the borrowers have used some influence or the other during the process of
availing educational loan. Most of the influences are from bank officials (26%),
politicians (14%) etc…for availing loan. By the recommendations from higher
officials, there will be a surety in the mind of the borrowers regarding the education
loan.
 Majority of the lenders strongly agree that the main reason for availing loan is to
avoid dependence on parents; this shows the independency of the borrowers and
commitment towards their career.
 Majority of the borrowers are of the opinion that they have received the adequate and
total amount of the sanctioned loan they have applied for. However less than one-fifth
of the borrowers have sought financial aid from other as well to meet their educational
expenses due to inadequacy of the educational loan.
 One-half of the borrowers are doing the repayment themselves to avoid dependency
over others, only 38% of the borrower’s parents are making the repayment.

45
 Just majority of the borrowers (58%) are satisfied with regard to educational loan as
offered to them. However less than one-fourth (22%) of the borrowers are highly
satisfied about the educational loan services offered to them.
 Advertisement through social media (38%) continues to be the most dominant means
to spread information regarding the educational loan followed by TV and Newspaper
(14%) and pit notices (6%), which may be because of the higher growth in technology
and social media among potential customers.
 Analysis concluded that borrowers consider educational loan as a significant
opportunity to finance their educational loans. 36% of the borrowers expect that the
interest rate should be reduced only few (8%) of them agree that educational loan is
utilized for the students to get quick employment.

5.2 SUGGESTIONS
 Educational institutions have to create awareness among students and parents about
the availability of educational loan scheme offered by different banks. They shall also
appraise the pros and cons of education loan to them. A tie up of the institution with a
few banks may significantly reduce the complications such as repeated visits,
complicated formalities and lack of proper guidance. Through such tie ups, bank
managers can be relieved from the difficulties they encounter during the sanctioning,
disbursement and recovery of educational loan. By co-opting educational institution
in all stages of education loan may significantly reduce NPA of banks. It may also
help the students to avail education loan at comparatively less rate of interest.
 From the bank side also, awareness programs may be given to prospective borrowers
about document requirements, formalities etc. regarding educational loan.
 A data bank of education loan borrowers may be collected centrally and proper
monitoring of borrowers and their accounts may be done so as to avoid willful
defaulters.
 One reason for not getting good job after the completion of the course is the lack of
competency of the students and the mushrooming of substandard educational
institutions in the country which miserably fails to bring out competent and
employable students. Cut off marks at entry level for different courses may be fixed
well in advance and institution based interest rate as per the grade of the institution
will discourage incapable applicants from availing education loan.

46
5.3 CONCLUSION

The study examined the perception of bankers and beneficiaries towards educational loan
in Irinjalakuda, Thrissur. The evaluation of education loan scheme of in Kerala from the
perspective of borrowers shows that the borrowers hailing from semi-urban areas are
significantly more aware of educational loan than borrowers from rural area. The
different aspects of educational loan such as awareness, eligibility, adequacy,
affordability and acceptability of educational loan. Moreover, the ‘repeated visit to bank’
has been identified as the most prominent problem encountered by borrowers during the
sanction and disbursement of loan. Evaluation of education loan from managers’
perspective signifies that problem on account of education loan is significantly more
because of the busy schedule and lack of proper documentation. In short, the tapping of
tremendous potential of educational loan, through effective implementation, monitoring
and follow up we will be able to cater to the mounting financial needs of students for
pursuing their studies. Educational loan scheme can provide a more promising tomorrow
by educating the masses leading to the creation of a highly enlightened future generation.
The problem encountered by borrowers and managers of commercial banks need to be
addressed proactively. Certainly, education loan will be a true contribution to the social
and economic development of the country in general and education sector in particular.

47
BIBLIOGRAPHY

48
REFERENCES

JOURNAL

 Srinivasan R. (2003) Analysis of education loan: A case study of National Capital

Territory of Delhi. International Journal of Management and Strategy, 2(3)1-14.
 Shatrugna (2004). Financial higher education, analysis the review and restructure of
the norms for financing the education sector, The Great Nationalist Ideology, 3(4), 1-
24.
 Tilak, (2005), ‘Is funding higher education in India’. Analysis the need for
continuation of the crucial role of the state in funding higher education, National
University of educational planning and administration, 16(4), 551-165.
 Gandhar, (2010), Educational loan scheme of scheduled commercial banks in India:
An Assessment, Sri Krishna International Research and Educational Consortium, 1(1)
65-95.
 Babli dhiman (2011) Educational loans: A study of students, educational institutions
and banker’s perspective. International Journal of Research in Commerce, It &
Management, 1(1) 81-92.
 Rekha Goel (2013) Students Perception Regarding Students Financing (with special
reference to Palwal and Faridabad District of Haryana) International Journal of Social
Science & Interdisciplinary Research, 2(7), 97-104.

WEBSITES

 http://www.sbi.co.in./user.html
 http://www.canarabank.co/educational-loan
 http://www.federalbank.com/educational-loan
 www.Googlescholar.com
 www.wikipidea.com
 www.shodhganga.com
 www.researchgate.com

49
ANNEXURE

50
 QUESTIONNAIRE FOR BENEFICIARIES

Dear Sir/Madam

Warm Greetings!

I request you to kindly fill up the questionnaire with at most care with most
appropriate information. I assure you that any information furnished by you will be kept
confidential and will be used only for academic purpose. I once again thank you for sparing
your valuable time for this study.

Thanking you,

Yours sincerely,

Aswiny Murali

1. Name:
2. Age :
 Less than 20
 20-25
 More than 25
3. Gender:
 Female
 Male
 Prefer not to say
4. Marital status
 Single
 Married
5. Education completed when you have availed loan:
 Up to SSLC
 Plus two/ Diploma
 UG
 PG
6. Present status:
 Searching for a job
 Student
 Employed

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7. Parent’s qualification
 No formal education
 Up to 12th
 UG
 PG
 Professional
 Others:
8. Occupation of the parent
 Farmer
 Business
 Government employee
 Private employee
 Profession
 Retires
 Other: -
9. Was any recommendation or any such influence was needed by you to get the loan
 Yes
 No
10. What are the reasons for availing educational loan?

Strongly Disagree Neutral Agree Strongly

Disagree Agree
Parent’s
income is not
sufficient
To create a
feeling of
commitment
To avoid
dependence
on parent
11. Did you get the total amount of the loan you have applied for?
 Yes
 No
12. Was the borrowed loan adequate to meet education expenditure?
 Yes
 No

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13. Who is making repayment ?
 Parents
 Siblings
 Guardian
 Student
14. How satisfied are you with the overall service provided by the banks
 Very good
 Good
 Barely acceptable
 Poor
 Very poor
15. Which medium is very useful to spread information

Not at all Not very Somewhat Occasionally Very useful

useful useful useful useful
Newspaper
TV
Social media
Pit notices

16. What is your perception about educational loan?

Strongly Disagree Neutral Agree Strongly

disagree Agree
When it is
available it is
better to use
Student’s to
get quick
employment
Education
loan should
be given only
to the poor
students
Interest rate
should be
reduced
Poor
recovery rate
of
educational
loan is due to
bank

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Questionnaire for Bankers

1. Name of the bank

 SIB
 Canara bank
 Federal bank
 SBI
2. Area of the bank branch
 Urban
 Semi- Urban
 Rural

3. Have you faced the following problems relating to education loan

Always often sometimes Rarely Never

Inadequate
documents
from
borrowers
Complexity
in education
loan
procedure
Failure in
repayment of
loan and
interest rate
Inadequate
support from
parents

4. In case your bank is receiving low number of applications for education loan, indicate the
probable reasons for such low response

Strongly Disagree Neutral Agree Strongly

Disagree Agree
People do not
have
awareness
People are not
willing to
educate their
children by
getting loan

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Bankers have
not
communicated
to the people
properly about
education loan
Bankers are
not showing
much interest
on educational
loan
People prefer
personal
borrowing
than
institutional
borrowing for
educational
loan

5. What is your perception about educational loan

Strongly Disagree Neutral Agree Strongly

Disagree Agree
It induces the
candidate to
be
accountable
It should be
given only to
poor students
Govt.
unnecessary
pressuring
banks to
award more
loan
It’s a huge
burden to the
bank
Interest rate
should be
lower
compared to
other loan

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