Lok Sabha Question No. 351 (UNSTARRED), answered on 2017-02-03
Subject: Educational Loan
Ministry: FINANCE
Asked by: BHARTRUHARI MAHTAB

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UNSTARRED QUESTION NO. 351 TO BE ANSWERED ON THE 3 RD  FEBRUARY, 2017, MAGHA 14, 1938 (SAKA)

## EDUCATIONAL LOAN

## 351.  SHRI BHARTRUHARI MAHTAB:

Will the Minister of Finance be pleased to state:

- (a)     whether the Government/ Reserve Bank of India has issued any instructions/guidelines to the banks including State Bank of India for granting education loans for pursuing higher education and if so, the details thereof;
- (b)     the details of the education loans sanctioned and disbursed by the said banks for pursuing degree and diploma courses in the country during the last three years and the current year, Statewise and Bank-wise;
- (c)     whether the Nationalised Banks are not granting education loan for post-graduation diploma courses conducted by colleges and approved by AICTE, if so, the details and reasons therefor;
- (d)            whether  the  students  particularly  those  belonging  to  SC/ST  and  poor  class  families  are being exploited by the private banks by charging higher interest rates and if so, the details thereof; and
- (e)     the steps taken/being taken by the Government to provide easy education loan to students in this regard?

## ANSWER (MINISTER OF STATE IN THE MINISTRY OF FINANCE)

## (SHRI SANTOSH KUMAR GANGWAR)

- (a) Indian Banks' Association (IBA) has formulated and circulated to all member banks including State Bank of India a 'Model Education Loan Scheme' for providing financial support to meritorious students  for  pursuing  higher  education  in  India  and  abroad.  The  IBA  scheme  provides  broad guidelines to the banks to operationalise the educational loan scheme and the implementing banks may vary their products as may be required.
- (b)  As  per  the  information  furnished  by  RBI,  the  state-wise/bank-wise education  loan  disbursed (classified as priority sector advances) by public sector banks and private sector banks for the last three years are at Annex- I/Annex- II, respectively.
- (c) As per IBA Model Scheme, approved courses leading to graduate/ post graduate degree and P G Diploma conducted by Colleges/ Universities recognized by the University Grants Commission,  the  All  India  Council  for  Technical  Education,  the  Indian  Council  of  Medical Research, etc. are eligible for education loan.
- (d)  As  per  directions  of  the  Reserve  Bank  of  India,  with  effect  from  1 st July,  2010,  banks  are required to price their loan products including education loans linked with the base rates (presently Marginal Cost of Lending Rate) approved by their respective Boards. Banks are not permitted to resort  to  any  lending  below  the  Base  Rates.  Accordingly,  interest  rates  on  education  loans  are decided by the bank concerned as per their approved policy. Interest Rates levied are not based on  the  socio-economic  background  of  the  students.  Government  of  India  provides  full  interest subsidy on education loans disbursed on or after 1 st April, 2009 by Scheduled Commercial Banks, during the period of moratorium, for the students belonging to economically weaker sections i.e. whose parental income from all sources does not exceed Rs 4.50 lakh per annum.
- (e) In order to facilitate easy processing and disbursal of loans, Government has launched a webbased  portal  viz.  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. 351 on Educational Loan for answer on 3rd February, 2017

| State-wise education loans disbursed (classified as by Public Sector Banks and Private Sector Banks   | State-wise education loans disbursed (classified as by Public Sector Banks and Private Sector Banks   | State-wise education loans disbursed (classified as by Public Sector Banks and Private Sector Banks   | priority sector advances) (Rs. in 'Thousands')   |
|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------------------------------------------------|
| States/UTs                                                                                            | 2013-14                                                                                               | 2014-15                                                                                               | 2015-16                                          |
| A & N Islands                                                                                         | 13763                                                                                                 | 15224                                                                                                 | 19577                                            |
| Andhra Pradesh                                                                                        | 7715289                                                                                               | 10614066                                                                                              | 8894066                                          |
| Arunachal Pradesh                                                                                     | 13035                                                                                                 | 27689                                                                                                 | 20893                                            |
| Assam                                                                                                 | 410345                                                                                                | 399712                                                                                                | 505530                                           |
| Bihar                                                                                                 | 2513372                                                                                               | 2918127                                                                                               | 2531889                                          |
| Chandigarh                                                                                            | 289488                                                                                                | 348669                                                                                                | 474438                                           |
| Chattisgarh                                                                                           | 440430                                                                                                | 582513                                                                                                | 689336                                           |
| Dadra & Nagar Haveli                                                                                  | 9851                                                                                                  | 10617                                                                                                 | 8692                                             |
| Daman & Diu                                                                                           | 6270                                                                                                  | 10402                                                                                                 | 11502                                            |
| Delhi                                                                                                 | 1657151                                                                                               | 1899132                                                                                               | 2497637                                          |
| Goa                                                                                                   | 137763                                                                                                | 151351                                                                                                | 154219                                           |
| Gujarat                                                                                               | 1951221                                                                                               | 2079895                                                                                               | 2418998                                          |
| Haryana                                                                                               | 1454475                                                                                               | 1430145                                                                                               | 2034879                                          |
| Himachal Pradesh                                                                                      | 526395                                                                                                | 521087                                                                                                | 575474                                           |
| Jammu & Kashmir                                                                                       | 740630                                                                                                | 334366                                                                                                | 405772                                           |
| Jharkhand                                                                                             | 1171580                                                                                               | 1221989                                                                                               | 1269416                                          |
| Karnataka                                                                                             | 7121144                                                                                               | 7998035                                                                                               | 9721996                                          |
| Kerala                                                                                                | 9498078                                                                                               | 10975798                                                                                              | 9688635                                          |
| Lakshadweep                                                                                           | 782                                                                                                   | 3152                                                                                                  | 1727                                             |
| Madhya Pradesh                                                                                        | 2156833                                                                                               | 2149217                                                                                               | 2499918                                          |
| Maharashtra                                                                                           | 7838689                                                                                               | 7494659                                                                                               | 10950914                                         |
| Manipur                                                                                               | 37801                                                                                                 | 47847                                                                                                 | 41214                                            |
| Meghalaya                                                                                             | 27645                                                                                                 | 63943                                                                                                 | 41307                                            |
| Mizoram                                                                                               | 19082                                                                                                 | 18675                                                                                                 | 26343                                            |
| Nagaland                                                                                              | 13307                                                                                                 | 21636                                                                                                 | 14672                                            |
| Orissa                                                                                                | 1320492                                                                                               | 1364157                                                                                               | 1584516                                          |
| Puducherry                                                                                            | 257420                                                                                                | 243354                                                                                                | 240866                                           |
| Punjab                                                                                                | 2313635                                                                                               | 2060098                                                                                               | 3051631                                          |
| Rajasthan                                                                                             | 1956429                                                                                               | 1843165                                                                                               | 2986249                                          |
| Sikkim                                                                                                | 15176                                                                                                 | 24975                                                                                                 | 31415                                            |
| Tamil Nadu                                                                                            | 18963128                                                                                              | 19522193                                                                                              | 15849561                                         |
| Telangana                                                                                             |                                                                                                       |                                                                                                       | 8826259                                          |
| Tripura                                                                                               | 103510                                                                                                | 115713                                                                                                | 270804                                           |
| Uttarakhand                                                                                           | 1133760                                                                                               | 1109350                                                                                               | 1357180                                          |
| Uttar Pradesh                                                                                         | 3798252                                                                                               | 3528543                                                                                               | 4748918                                          |
| West Bengal                                                                                           | 1872889                                                                                               | 1977413                                                                                               | 2293620                                          |
| Total                                                                                                 | 77499110                                                                                              | 83126907                                                                                              | 96740063                                         |

Source RBI

| Annex-II to reply of Lok Sabha Unstarred Question No. 351 on 'Educational Loan' for answer on 3 rd February, 2017   | Annex-II to reply of Lok Sabha Unstarred Question No. 351 on 'Educational Loan' for answer on 3 rd February, 2017   | Annex-II to reply of Lok Sabha Unstarred Question No. 351 on 'Educational Loan' for answer on 3 rd February, 2017   | Annex-II to reply of Lok Sabha Unstarred Question No. 351 on 'Educational Loan' for answer on 3 rd February, 2017   |
|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
| 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                                                                                                 | February, 2017 7386925                                                                                              | 7220871                                                                                                             | 14450625                                                                                                            |
| State Bank of Mysore                                                                                                | 824700                                                                                                              | 1132406                                                                                                             | 1362196                                                                                                             |
| State Bank of Patiala                                                                                               | 672410                                                                                                              | 658986                                                                                                              | 491430                                                                                                              |
| State Bank of Travancore                                                                                            | on February, 2017 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 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                                                                                                            |
| Axis Bank                                                                                                           | 219721                                                                                                              | 509939                                                                                                              | 1095381                                                                                                             |
| Bandhan Bank                                                                                                        | 0                                                                                                                   | 0                                                                                                                   | 221500                                                                                                              |
| Catholic Syrian Bank City Union Bank                                                                                | 427669 293657                                                                                                       | 1086206 314989                                                                                                      | 129005 242540                                                                                                       |
| Development Credit Bank                                                                                             | 33413                                                                                                               | 47946                                                                                                               | 70413                                                                                                               |
| Dhanlaxmi Bank                                                                                                      | 210534                                                                                                              | 256531                                                                                                              | 242406                                                                                                              |
| Federal Bank                                                                                                        | 1392737                                                                                                             | 1432879                                                                                                             | 1183368                                                                                                             |
| HDFC Bank                                                                                                           | 92991                                                                                                               | 262457                                                                                                              | 302227                                                                                                              |
| ICICI Bank                                                                                                          | 119543                                                                                                              | 97434                                                                                                               | 76664                                                                                                               |
| Indusind Bank                                                                                                       | 1498                                                                                                                | 564                                                                                                                 | 231                                                                                                                 |
| ING Vysya Bank                                                                                                      | 36912                                                                                                               | 6147                                                                                                                | 0                                                                                                                   |
| Jammu & Kashmir Bank                                                                                                | 653591                                                                                                              | 270442                                                                                                              | 266121                                                                                                              |
| Karnataka Bank                                                                                                      | 349182                                                                                                              | 364801                                                                                                              | 506335                                                                                                              |
| Karur Vysya Bank                                                                                                    | 222476                                                                                                              | 81764                                                                                                               | 392164                                                                                                              |
| Kotak Mahindra Bank                                                                                                 | 33772                                                                                                               | 127907                                                                                                              | 8249                                                                                                                |
| Lakshmi Vilas Bank                                                                                                  | 345869                                                                                                              | 348108                                                                                                              | 100819                                                                                                              |
| Nainital Bank                                                                                                       | 21243                                                                                                               | 75967                                                                                                               | 71933                                                                                                               |
| Ratnakar Bank                                                                                                       | 28972                                                                                                               | 122781                                                                                                              | 333709 738188                                                                                                       |
| South Indian Bank                                                                                                   | 2080356 334978                                                                                                      | 1202947 326124                                                                                                      | 273028                                                                                                              |
| Tamilnad Mercantile Bank Yes Bank                                                                                   | 0                                                                                                                   | 430                                                                                                                 | 0                                                                                                                   |
| Total Private Sector Banks                                                                                          | 6899114                                                                                                             | 6936363                                                                                                             | 6254281                                                                                                             |
| Total                                                                                                               | 77499110                                                                                                            | 83126907                                                                                                            | 96740063                                                                                                            |

Source: RBI