Lok Sabha Question No. 1833 (UNSTARRED), answered on 2017-03-10
Subject: Growth Rate of Education Loans
Ministry: FINANCE
Asked by: HARI NARAYAN RAJBHAR

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UNSTARRED QUESTION NO. †1833

TO BE ANSWERED ON THE 10 th    MARCH, 2017, PHALGUNA 19, 1938 (SAKA)

## GROWTH RATE OF EDUCATION LOANS

## †1833 SHRI HARINARAYAN RAJBHAR

Will the Minister of FINANCE be pleased to state:

- (a) whether growth rate of education loans of Public Sector Banks (PSBs) has declined during the last three years and the current year;
- (b) if  so,  the  details  thereof,  State/UT-wise  including  Uttar  Pradesh  and  the  reasons therefor;
- (c) the  details  of  criteria  adopted  by  PSBs  for  disbursement  of  education  loans  along with  amount  disbursed  as  such  loan  during  each  of  the  last  three  years  and  the current year, bank and category-wise;
- (d) whether the Government proposes to revise the current model under the education loan scheme;  and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER (MINISTER OF STATE IN THE MINISTRY OF FINANCE) (SHRI SANTOSH KUMAR GANGWAR )

(a) and (b): The details regarding number  of accounts, balance outstanding and percentage growth rate are given below.

|   Year (as on 31 st March |   No. of Accounts (No. in lakh) |   Balance Outstanding (Rs in crore) | % growth rate (over previous year)   |
|---------------------------|---------------------------------|-------------------------------------|--------------------------------------|
|                      2013 |                           25.9  |                             52738.7 |                                      |
|                      2014 |                           26.81 |                             57164.2 | 8.39                                 |
|                      2015 |                           26.71 |                             59336   | 3.80                                 |
|                      2016 |                           24.35 |                             59305.7 | -0.05                                |

Source: RBI

As per the information furnished by RBI, State-wise number of education loan accounts and amount outstanding (classified as priority sector advances) including State of Uttar Pradesh for the last three years and current year is given at Annex-I.

(c)  The loans are sanctioned as per the guidelines laid down by Indian Banks' Association (IBA) from time to time. Presently, as per revised IBA Scheme, the eligibility criteria is as under:

-  The student should be an Indian National.
-  Should have secured admission to a higher education course in recognized institutions in India or abroad through Entrance Test/ Merit Based Selection process after completion of  High  School  Certificate  (HSC)  (10  plus  2  or  equivalent).    However,  entrance  test  or selection purely based on marks obtained in qualifying examination may not be the criterion for  admission  to  some  of  the  post  graduate  courses  or  research  programmes.  In  such cases, banks will have to adopt appropriate criteria based on employability and reputation of the institution concerned.

Note: It would be in order for banks to consider a meritorious student (who qualifies for a seat under merit quota) eligible for loan under this scheme even if the student chooses to pursue a course under Management Quota.

As per data furnished by RBI, Bank-wise details of education loans disbursed by Public Sector Banks (classified as priority sector advances), for the last three years is given at Annex-II.

(d)  and  (e)  The  Model  Education  Loan  Scheme  is  modified  from  time  to  time  by  Indian Banks' Association (IBA) keeping in view the needs of the students. The last such revision was  done  in  August,  2015.  Under  the  revised  scheme,  repayment  period  has  been extended upto  15  years  besides  one  year  moratorium  for  repayment  after  completion  of studies in all cases. There is also a provision for moratorium taking into account spells of unemployment/under-employment, say two or three times during the life cycle of the loan. Moratorium may also be provided for the incubation period if the student wants to take up a start-up venture after graduation.

In order to facilitate easy processing and disbursal of loans, Government has launched a web-based portal namely, Vidya Lakshmi Portal. Students can view, apply and track the education  loan  applications  online  by  accessing  the  portal.  Government  of  India  has launched  a  Credit  Guarantee  Fund  Scheme  for  Education  Loans  (CGFSEL)  wherein collateral free loan is given upto Rs.7.5 lakh.

******

Annex-I to reply of  Lok Sabha UnStarred Question No. 1833 on Growth Rate of Education Loans  for answer on 10th March, 2016

| State-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | State-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | State-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | State-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | State-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | State-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | State-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | State-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | State-wise number of education loan accounts and amount outstanding in Rs 'Crore'   |
|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|
|                                                                                     | 31.03.2013                                                                          | 31.03.2013                                                                          | 31.03.2014                                                                          | 31.03.2014                                                                          | 31.03.2015                                                                          | 31.03.2015                                                                          | 31.03.2016                                                                          | 31.03.2016                                                                          |
| State                                                                               | No. of Accounts                                                                     | Amount Outstanding                                                                  | No. of Accounts                                                                     | Amount Outstanding                                                                  | No. of Accounts                                                                     | Amount Outstanding                                                                  | No. of Accounts                                                                     | Amount Outstandi ng                                                                 |
| A & N Islands                                                                       | 568                                                                                 | 13.60                                                                               | 585                                                                                 | 15.04                                                                               | 590                                                                                 | 16.41                                                                               | 447                                                                                 | 14.09                                                                               |
| Andhra Pradesh                                                                      | 197032                                                                              | 4698.58                                                                             | 190340                                                                              | 4987.76                                                                             | 170678                                                                              | 5443.33                                                                             | 103152                                                                              | 3411.63                                                                             |
| Arunachal Pradesh                                                                   | 510                                                                                 | 12.20                                                                               | 589                                                                                 | 13.61                                                                               | 685                                                                                 | 15.15                                                                               | 573                                                                                 | 14.68                                                                               |
| Assam                                                                               | 16394                                                                               | 391.20                                                                              | 16678                                                                               | 423.97                                                                              | 16467                                                                               | 522.10                                                                              | 15357                                                                               | 427.52                                                                              |
| Bihar                                                                               | 88982                                                                               | 2107.09                                                                             | 99620                                                                               | 2725.34                                                                             | 102426                                                                              | 2949.60                                                                             | 100418                                                                              | 3079.90                                                                             |
| Chandigarh                                                                          | 5181                                                                                | 160.44                                                                              | 4873                                                                                | 160.02                                                                              | 4633                                                                                | 166.72                                                                              | 4282                                                                                | 154.56                                                                              |
| Chattisgarh                                                                         | 16015                                                                               | 308.59                                                                              | 16792                                                                               | 368.03                                                                              | 18010                                                                               | 406.23                                                                              | 17694                                                                               | 432.37                                                                              |
| Dadra & Nagar Haveli                                                                | 313                                                                                 | 5.76                                                                                | 226                                                                                 | 6.10                                                                                | 265                                                                                 | 6.62                                                                                | 213                                                                                 | 6.25                                                                                |
| Daman & Diu                                                                         | 124                                                                                 | 3.27                                                                                | 127                                                                                 | 3.28                                                                                | 137                                                                                 | 4.32                                                                                | 222                                                                                 | 8.73                                                                                |
| Delhi                                                                               | 34073                                                                               | 1018.29                                                                             | 32890                                                                               | 1028.53                                                                             | 31990                                                                               | 1411.55                                                                             | 30100                                                                               | 1042.21                                                                             |
| Goa                                                                                 | 3492                                                                                | 84.62                                                                               | 3342                                                                                | 90.94                                                                               | 3211                                                                                | 94.87                                                                               | 2995                                                                                | 100.56                                                                              |
| Gujarat                                                                             | 44055                                                                               | 1271.78                                                                             | 45937                                                                               | 1182.63                                                                             | 45911                                                                               | 1160.67                                                                             | 44177                                                                               | 1349.63                                                                             |
| Haryana                                                                             | 37254                                                                               | 839.38                                                                              | 37531                                                                               | 950.39                                                                              | 36401                                                                               | 953.83                                                                              | 35290                                                                               | 986.48                                                                              |
| Himachal Pradesh                                                                    | 14171                                                                               | 286.85                                                                              | 14611                                                                               | 330.65                                                                              | 14929                                                                               | 353.67                                                                              | 14254                                                                               | 340.76                                                                              |
| Jammu & Kashmir                                                                     | 10838                                                                               | 223.60                                                                              | 10935                                                                               | 241.26                                                                              | 11306                                                                               | 248.36                                                                              | 3232                                                                                | 94.87                                                                               |
| Jharkhand                                                                           | 46018                                                                               | 1231.98                                                                             | 48849                                                                               | 1333.10                                                                             | 48423                                                                               | 1368.78                                                                             | 45761                                                                               | 1436.44                                                                             |
| Karnataka                                                                           | 186623                                                                              | 3874.54                                                                             | 195169                                                                              | 4062.52                                                                             | 198709                                                                              | 4159.53                                                                             | 195419                                                                              | 4447.51                                                                             |
| Kerala                                                                              | 336212                                                                              | 7353.91                                                                             | 341427                                                                              | 7975.57                                                                             | 331663                                                                              | 7788.53                                                                             | 276817                                                                              | 7335.42                                                                             |
| Lakshadweep                                                                         | 20                                                                                  | 0.37                                                                                | 29                                                                                  | 0.62                                                                                | 31                                                                                  | 0.81                                                                                | 36                                                                                  | 0.89                                                                                |
| Madhya Pradesh                                                                      | 80077                                                                               | 1586.77                                                                             | 83230                                                                               | 1739.40                                                                             | 81372                                                                               | 1813.45                                                                             | 76846                                                                               | 1830.38                                                                             |
| Maharashtra                                                                         | 169491                                                                              | 4073.87                                                                             | 178587                                                                              | 4131.22                                                                             | 188673                                                                              | 4532.75                                                                             | 180538                                                                              | 4765.12                                                                             |
| Manipur                                                                             | 1393                                                                                | 39.60                                                                               | 1433                                                                                | 40.74                                                                               | 1338                                                                                | 37.35                                                                               | 1092                                                                                | 34.95                                                                               |
| Meghalaya                                                                           | 1687                                                                                | 39.80                                                                               | 2021                                                                                | 51.51                                                                               | 2184                                                                                | 52.26                                                                               | 2140                                                                                | 62.37                                                                               |
| Mizoram                                                                             | 390                                                                                 | 10.51                                                                               | 706                                                                                 | 24.00                                                                               | 685                                                                                 | 20.63                                                                               | 579                                                                                 | 19.78                                                                               |
| Nagaland                                                                            | 399                                                                                 | 10.72                                                                               | 417                                                                                 | 12.48                                                                               | 444                                                                                 | 12.92                                                                               | 384                                                                                 | 10.07                                                                               |
| Orissa                                                                              | 69886                                                                               | 1665.24                                                                             | 68200                                                                               | 1733.98                                                                             | 65016                                                                               | 1737.16                                                                             | 59829                                                                               | 1575.01                                                                             |
| Puducherry                                                                          | 14636                                                                               | 264.42                                                                              | 14808                                                                               | 292.18                                                                              | 14598                                                                               | 288.41                                                                              | 13271                                                                               | 272.86                                                                              |
| Punjab                                                                              | 32005                                                                               | 812.68                                                                              | 32810                                                                               | 956.26                                                                              | 32438                                                                               | 1021.41                                                                             | 31477                                                                               | 1023.27                                                                             |
| Rajasthan                                                                           | 58424                                                                               | 1318.15                                                                             | 59314                                                                               | 1353.26                                                                             | 57940                                                                               | 1355.02                                                                             | 55916                                                                               | 1407.16                                                                             |
| Sikkim                                                                              | 409                                                                                 | 10.83                                                                               | 440                                                                                 | 12.03                                                                               | 444                                                                                 | 12.30                                                                               | 453                                                                                 | 12.91                                                                               |
| Tamil Nadu                                                                          | 886752                                                                              | 13343.65                                                                            | 940990                                                                              | 15077.59                                                                            | 960202                                                                              | 16313.06                                                                            | 837508                                                                              | 14601.73                                                                            |
| Telangana                                                                           | 0                                                                                   | 0.00                                                                                | 0                                                                                   | 0.00                                                                                | 0                                                                                   | 0.00                                                                                | 68483                                                                               | 3253.03                                                                             |
| Tripura                                                                             | 2280                                                                                | 45.89                                                                               | 2804                                                                                | 61.83                                                                               |                                                                                     |                                                                                     | 3153                                                                                | 85.53                                                                               |
|                                                                                     | 28401                                                                               | 665.44                                                                              | 26121                                                                               |                                                                                     | 3271                                                                                | 76.10                                                                               |                                                                                     | 833.13                                                                              |
| Uttarakhand Uttar Pradesh                                                           | 137393                                                                              | 3521.06                                                                             | 141095                                                                              | 657.34 3575.11                                                                      | 33811 127478                                                                        | 878.14 3130.67                                                                      | 30772 122344                                                                        | 3284.06                                                                             |
| West Bengal                                                                         | 68547                                                                               | 1443.98                                                                             | 67834                                                                               | 1545.87                                                                             | 64957                                                                               |                                                                                     |                                                                                     |                                                                                     |
| TOTAL                                                                               | 2590045                                                                             | 52738.67                                                                            | 2681360                                                                             | 57164.17                                                                            | 2671316                                                                             | 983.31 59336.04                                                                     | 60257 2435481                                                                       | 1549.80 59305.71                                                                    |

Source RBI

## Annex-II to reply of Lok Sabha Unstarred Question No. 1833 on 'Growth Rate of Education Loans' for answer on 10th March , 2017

| Bank-wise education loans disbursed (classified as priority sector advances) ( Rs in 'Thousands')   | Bank-wise education loans disbursed (classified as priority sector advances) ( Rs in 'Thousands')   | Bank-wise education loans disbursed (classified as priority sector advances) ( Rs in 'Thousands')   | Bank-wise education loans disbursed (classified as priority sector advances) ( Rs in 'Thousands')   |
|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|
| Name of the Bank                                                                                    | 2013-14                                                                                             | 2014-15                                                                                             | 2015-16                                                                                             |
| State Bank of Bikaner & Jaipur                                                                      | 855479                                                                                              | 630342                                                                                              | 775693                                                                                              |
| State Bank of Hyderabad                                                                             | 875584                                                                                              | 1217320                                                                                             | 1820578                                                                                             |
| State Bank of India                                                                                 | 7386925                                                                                             | 7220871                                                                                             | 14450625                                                                                            |
| State Bank of Mysore                                                                                | 824700                                                                                              | 1132406                                                                                             | 1362196                                                                                             |
| State Bank of Patiala                                                                               | 672410                                                                                              | 658986                                                                                              | 491430                                                                                              |
| State Bank of Travancore                                                                            | 2610003                                                                                             | 1886835                                                                                             | 1252042                                                                                             |
| Allahabad Bank                                                                                      | 1779870                                                                                             | 1649317                                                                                             | 1023718                                                                                             |
| Andhra Bank                                                                                         | 3073890                                                                                             | 4504114                                                                                             | 6575202                                                                                             |
| Bank of Baroda                                                                                      | 3506734                                                                                             | 2413692                                                                                             | 2310149                                                                                             |
| Bank of India                                                                                       | 5431375                                                                                             | 5801433                                                                                             | 4841241                                                                                             |
| Bank of Maharashtra                                                                                 | 1631006                                                                                             | 775841                                                                                              | 1189630                                                                                             |
| Bhartiya Mahila Bank Ltd.                                                                           | 0                                                                                                   | 26440                                                                                               | 23412                                                                                               |
| Canara Bank                                                                                         | 1162304                                                                                             | 9150015                                                                                             | 10066068                                                                                            |
| Central Bank of India                                                                               | 3138700                                                                                             | 4982246                                                                                             | 4737615                                                                                             |
| Corporation Bank                                                                                    | 4164689                                                                                             | 3006334                                                                                             | 857405                                                                                              |
| Dena Bank                                                                                           | 968364                                                                                              | 786955                                                                                              | 1013303                                                                                             |
| IDBI Bank Ltd.                                                                                      | 1138802                                                                                             | 1040466                                                                                             | 2882734                                                                                             |
| Indian Bank                                                                                         | 3725133                                                                                             | 2834120                                                                                             | 2088487                                                                                             |
| Indian Overseas Bank                                                                                | 6051034                                                                                             | 5823249                                                                                             | 4654762                                                                                             |
| Oriental Bank of Commerce                                                                           | 2185265                                                                                             | 1648793                                                                                             | 4456731                                                                                             |
| Punjab and Sind Bank                                                                                | 898673                                                                                              | 512427                                                                                              | 1062607                                                                                             |
| Punjab National Bank                                                                                | 6014838                                                                                             | 5596306                                                                                             | 6674830                                                                                             |
| Syndicate Bank                                                                                      | 3125989                                                                                             | 2932516                                                                                             | 5390109                                                                                             |
| UCO Bank                                                                                            | 2611481                                                                                             | 2466765                                                                                             | 2304969                                                                                             |
| Union Bank of India                                                                                 | 3796491                                                                                             | 4092472                                                                                             | 3979842                                                                                             |
| United Bank of India                                                                                | 1012387                                                                                             | 856758                                                                                              | 818579                                                                                              |
| Vijaya Bank                                                                                         | 1957870                                                                                             | 2543525                                                                                             | 3381826                                                                                             |
| Total Public Sector Banks                                                                           | 70599996                                                                                            | 76190544                                                                                            | 90485781                                                                                            |

Source: RBI