Lok Sabha Question No. 70 (UNSTARRED), answered on 2017-12-15
Subject: Study Loans
Ministry: FINANCE
Asked by: RAJAN BABURAO  VICHARE

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

## UNSTARRED QUESTION NO. 70

## TO BE ANSWERED ON THE 15 th  DECEMBER, 2017, AGRAHAYANA 24, 1939 (SAKA) Study Loans

## 70. SHRI RAJAN VICHARE :

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  treats  the  General  Study  Loans  and  the  Scholar Study Loans being provided by the Public Sector Banks (PSBs) in the country on the same footing and if so, the details thereof and if not, the reasons therefor;
- (b) the details regarding the number and total value of study loans provided by the PSBs during the year 2017 for both of these categories, bank and category-wise;
- (c) whether the State Bank of India (SBI) is insisting on the parents being as a co-applicant  along  with  the  students  in  the  case  of  scholar  loans,  whereas  some other PSBs are not resorting to this strange practice;
- (d) if  so,  the  details  thereof and the reasons for putting such a condition by the SBI; and
- (e) the steps taken/being taken by Government to stop this practice on the part of the SBI in particular and other banks as well as in the case of all the scholar loans provided by them during the year 2017 especially and even before that?

## ANSWER (MINISTER OF STATE IN THE MINISTRY OF FINANCE) (SHRI SHIV PRATAP SHUKLA)

- (a)  Banks  follow  the  Indian  Banks  Association  (IBA)  Model  Educational  Loan Scheme which aims to provide financial support to meritorious students for pursuing higher education in India and abroad. As per IBA scheme, General Study Loans and Scholar Study Loans are the same. The scheme provides broad guidelines to the banks for operationalizing the educational loan scheme and the implementing bank have the discretion to make changes as deemed fit.
- (b)  As  per  information  received  from  RBI,  data  on  credit  disbursed  towards Education Loan by Public Sector Banks, during the year 2017 is at Annexure.
- (c) to (e): As per information provided by SBI, for sanction of scholar loans in SBI, the requirement of co-borrower (Parents/Near relatives) is in vogue.  Requirement of Parents to be joint borrowers in study loans is as per provision of IBA Scheme.
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## Annexure to reply of Lok Sabha Unstarred Question No. 70 on Study Loans for answer on 15th December, 2017 Data on credit disbursed towards Education Loan by Public Sector Banks, during the year 2017

(No. of A/c in lakh, Amt. Disbursed in Rs.crore)

| Sr No.                 | Banks                            |   No. of A/c |   Amount Disbursed |
|------------------------|----------------------------------|--------------|--------------------|
| 1                      | STATE BANK OF BIKANER AND JAIPUR |         0.04 |              69.5  |
| 2                      | STATE BANK OF HYDERABAD          |         0.04 |             125.39 |
| 3                      | STATE BANK OF INDIA              |         0.62 |            1376.77 |
| 4                      | STATE BANK OF MYSORE             |         0.07 |             131.62 |
| 5                      | STATE BANK OF PATIALA            |         0.01 |              53.05 |
| 6                      | STATE BANK OF TRAVANCORE         |         0.05 |              41.94 |
| SBI AND ITS ASSOCIATES | SBI AND ITS ASSOCIATES           |         0.84 |            1798.27 |
| 1                      | ALLAHABAD BANK                   |         0.18 |             225.6  |
| 2                      | ANDHRA BANK                      |         0.23 |             585.53 |
| 3                      | BANK OF BARODA                   |         0.24 |             192.48 |
| 4                      | BANK OF INDIA                    |         0.38 |             449.5  |
| 5                      | BANK OF MAHARASHTRA              |         0.11 |             214.37 |
| 6 BHARATIYA            | MAHILA BANK LTD.                 |         0    |               1.84 |
| 7                      | CANARA BANK                      |         1.1  |            1903.06 |
| 8 CENTRAL              | BANK OF INDIA                    |         0.39 |             513.62 |
| 9                      | CORPORATION BANK                 |         0.29 |             874.59 |
| 10                     | DENA BANK                        |         0.02 |              82.58 |
| 11                     | IDBI BANK LIMITED                |         0.11 |             281.25 |
| 12                     | INDIAN BANK                      |         0.28 |             407.53 |
| 13                     | INDIAN OVERSEAS BANK             |         0.11 |             373.28 |
| 14                     | ORIENTAL BANK OF COMMERCE        |         0.11 |             245.99 |
| 15                     | PUNJAB AND SIND BANK             |         0.01 |              99.3  |
| 16                     | PUNJAB NATIONAL BANK             |         0.43 |             915.65 |
| 17                     | SYNDICATE BANK                   |         0.38 |             568.32 |
| 18                     | UCO BANK                         |         0.15 |             318.22 |
| 19                     | UNION BANK OF INDIA              |         0.31 |             548.99 |
| 20                     | UNITED BANK OF INDIA             |         0.08 |             104.63 |
| 21                     | VIJAYA BANK                      |         0.26 |             471.31 |
| NATIONALISED BANKS     | NATIONALISED BANKS               |         5.15 |            9377.64 |
| Total                  | Total                            |         6    |           11175.9  |

Source: RBI