Lok Sabha Question No. 1198 (UNSTARRED), answered on 2017-12-22
Subject: Education Loan
Ministry: FINANCE
Asked by: R. VANAROJA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## UNSTARRED QUESTION NO. 1198 TO BE ANSWERED ON THE 22 nd  DECEMBER, 2017, PAUSHA 1, 1939 (SAKA)

## Education Loan

## 1198. SHRIMATI VANAROJA R.:

Will the Minister of FINANCE be pleased to state:

- (a) whether the banks have seen  142 per cent rise in default by students who have taken education loans during the past few years;
- (b) if so, the details thereof;
- (c) whether the State owned banks, which are already  weighed down by huge defaults by corporates, are hit as they account for over 90 per cent of educational loans; and
- (d) if so, the details thereof ?

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

(a)  to (d):  No Sir, the default in education loan has risen marginally over the years. The details of  Non-Performing Assets (NPAs) of Public Sector Banks in education loans during the last three years is given below:

## Amount in Rs Crore

|   Year (As on 31 st March of) |   Outstanding |     NPA |   %age of NPA |
|-------------------------------|---------------|---------|---------------|
|                          2015 |       62003.3 | 3536.02 |          5.7  |
|                          2016 |       65454.4 | 4777.07 |          7.3  |
|                          2017 |       67678.5 | 5191.72 |          7.67 |

Source: Indian Banks' Association (IBA)

Bank-wise  position  of  NPA  for  education  loans  during  the  last  three  years  is  at Annexure.

To reduce the incidence of NPA in education loans, Government has modified IBA Model Education Loan Scheme taking into account the needs of the students. The changes, inter-alia, include Repayment    Holiday / Moratorium of Course period + 1 year,  additional  periods  of  moratorium  taking  into  account    spells  of  underemployment/unemployment,  during the life cycle of the loan, extension of repayment  period  to  15  years  to  reduce  Equated  Monthly  Instalment  (EMI),  etc. Government  of  India  has  also  launched  a  Credit  Guarantee  Fund  Scheme  for Education  Loans  (CGFEL)  for  loans  upto  Rs  7.50  Lakh.  The  fund  provides guarantee to the extent of 75% of the defaulted amount.

******

Annexure to Reply of Lok Sabha Unstarred Question No. 1198 on Education Loan for answer on 22 nd December, 2017

| Bank-wise Position of NPA of education loans (Amount in   | Bank-wise Position of NPA of education loans (Amount in   | Bank-wise Position of NPA of education loans (Amount in   | Rs Crore)                   | Rs Crore)   |
|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------|-------------|
| S.N.                                                      | Name of Bank                                              | As on 31.03.2015                                          | 31.03.2016 As on 31.03.2017 |             |
| 1                                                         | Allahabad Bank                                            | 40.12                                                     | 34.63                       | 49.20       |
| 2                                                         | Andhra Bank                                               | 81.11                                                     | 57.89                       | 61.97       |
| 3                                                         | Bank of Baroda                                            | 156.73                                                    | 294.93                      | 331.31      |
| 4                                                         | Bank of India                                             | 114.75                                                    | 161.46                      | 218.11      |
| 5                                                         | Bank of Maharashtra                                       | 27.56                                                     | 42.12                       | 51.08       |
| 6                                                         | Bhartiya Mahila Bank                                      | 0.00                                                      | 0.00                        | 0.00        |
| 7                                                         | Canara Bank                                               | 169.16                                                    | 316.60                      | 265.49      |
| 8                                                         | Central Bank of India                                     | 192.00                                                    | 238.00                      | 317.65      |
| 9                                                         | Corporation Bank                                          | 116.75                                                    | 96.99                       | 167.10      |
| 10                                                        | Dena Bank                                                 | 36.73                                                     | 41.47                       | 49.88       |
| 11                                                        | IDBI Bank                                                 | 18.63                                                     | 30.11                       | 35.58       |
| 12                                                        | Indian Bank                                               | 250.01                                                    | 527.78                      | 671.37      |
| 13                                                        | Indian Overseas Bank                                      | 380.49                                                    | 651.16                      | 384.20      |
| 14                                                        | Oriental Bank of Commerce                                 | 106.79                                                    | 107.81                      | 137.41      |
| 15                                                        | Punjab & Sind Bank                                        | 22.69                                                     | 19.23                       | 18.80       |
| 16                                                        | Punjab National Bank                                      | 251.53                                                    | 388.67                      | 478.03      |
| 17                                                        | Syndicate Bank                                            | 299.66                                                    | 368.33                      | 343.00      |
| 18                                                        | UCO Bank                                                  | 101.40                                                    | 298.17                      | 346.71      |
| 19                                                        | Union Bank of India                                       | 194.88                                                    | 233.83                      | 253.49      |
| 20                                                        | United Bank of India                                      | 55.01                                                     | 56.55                       | 56.24       |
| 21                                                        | Vijaya Bank                                               | 34.74                                                     | 33.55                       | 63.16       |
| 22                                                        | State Bank of India                                       | 614.00                                                    | 454.00                      | 538.17      |
| 23                                                        | State Bank of Bikaner & Jaipur                            | 26.45                                                     | 29.99                       | 21.75       |
| 24                                                        | State Bank of Hyderabad.                                  | 41.08                                                     | 37.28                       | 81.83       |
| 25                                                        | State Bank of Mysore                                      | 40.87                                                     | 44.79                       | 66.32       |
| 26                                                        | State Bank of Patiala                                     | 11.75                                                     | 12.79                       | 18.63       |
| 27                                                        | State Bank of Travancore                                  | 151.14                                                    | 198.94                      | 165.24      |
|                                                           | Total                                                     | 3536.02                                                   | 4777.07                     | 5191.72     |

Source: Data provided by IBA