Lok Sabha Question No. 3639 (UNSTARRED), answered on 2020-03-16
Subject: Education Loans
Ministry: FINANCE
Asked by: Keshari Devi Patel

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

## LOKSABHA

## UNSTARRED QUESTION NO. †3639

TO BE ANSWERED ON THE 16 th MARCH, 2020, PHALGUNA 26, 1941 (SAKA)

## EDUCATION LOANS

## †3639. SHRIMATI KESHARI DEVI PATEL:

Will the Minister of FINANCE be pleased to state:

(a) whether the Banks in Uttar Pradesh make it very difficult for the students to get education loans thereby harassing them and if so, the details thereof along with the corrective action taken by the Government in this regard;

- (b) the details of number of students who were unable to complete their education due to non-availability of education loans in Uttar Pradesh;
- (c) the details of steps being taken by the Government to ensure that all students get timely education loans;
- (d) the details of the education loans disbursed in Uttar Pradesh during the year 2019-2020, bank-wise; and

(e) the details of the total number of students who applied for education loans in Uttar Pradesh during the year 2019-2020, district-wise?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

(a) to (e): Government and Indian Banks' Association (IBA) have taken several steps to facilitate hassle free lending with respect to education loans and to enable timely education loans including inter-alia the following:

1. IBA has devised Model Educational Loan Scheme which provides for (i) repayment period upto 15 years, (ii) one year moratorium for repayment after completion of studies in all cases, (iii) moratorium taking into account spells of unemployment/under-employment, say two or three times during the life cycle of the loan and (iv) moratorium for the incubation period if the student wants to take up a start-up venture after graduation, and (v) collateral free loans upto Rs 7.5 Lakh under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL),

2. The Model Education Loan Scheme also provides for education loan applications to be normally disposed off by banks within 15 days to one month of the receipt of loan application complete in all respects. Further, the Scheme has several provisions to enable speedy disposal of loan applications including, inter-alia, (i) issue of standard acknowledgement with reference number on receipt of application containing contact details of the bank official to be contacted in case of delay in disposal of application, (ii) rejection of loan application, if any, to be done with the concurrence of the controlling authority of the branch concerned, and to be conveyed to the applicant stating clearly the reasons for rejection, and (iii) disbursement of the loan in stages as per the requirement/demand directly to the Institutions/Vendors of equipments or instruments to the extent possible in order to avoid delays.

3. Government has also launched an online portal viz ; Vidya Lakshmi Portal to ensure hassle free education loans through a single window system to students.

State Level Bankers' Committee (SLBC), Uttar Pradesh (UP) has informed that banks in UP follow all relevant guidelines regarding education loans. Further, any complaint received in respect of delay in sanction or disbursement of education loans, including those received on the Centralized Public Grievance Redress and Monitoring System (CPGRAMS) which are required to be disposed within 60 days, are taken up with the concerned bank for redressal . The number of education loans and the amount of loans sanctioned by banks in UP have increased from 11219 accounts involving an amount of Rs 780.90 crore in financial year 2018-19 to 11396 accounts involving an amount of Rs 864.34 crore in financial year 2019-20 (till 29.02.2020). Information about the number of students who were unable to complete their education due to non-availability of education loans is not maintained.

As per information furnished by SLBC, UP, Bank-wise details of education loans disbursed during 2019-20 is given in Annexure-I.

As per information furnished by SLBC, UP, District-wise number of students who applied for education loans in UP during the year 2019-20 is given in Annexure-II.

******

| Annexure-I referred in reply to part (d) of Lok Sabha Unstarred Question No. 3639 due for answer on 16.03.2020   | Annexure-I referred in reply to part (d) of Lok Sabha Unstarred Question No. 3639 due for answer on 16.03.2020   | Annexure-I referred in reply to part (d) of Lok Sabha Unstarred Question No. 3639 due for answer on 16.03.2020   |
|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|
| Bank-wise details of education loans disbursed in Uttar Pradesh during the year 2019-20 (up to 29.02.2020)**     | Bank-wise details of education loans disbursed in Uttar Pradesh during the year 2019-20 (up to 29.02.2020)**     | Bank-wise details of education loans disbursed in Uttar Pradesh during the year 2019-20 (up to 29.02.2020)**     |
| Name of the Bank                                                                                                 | Number of Accounts                                                                                               | Education loan disbursed (Amount in Rs Crores)                                                                   |
| Bank of Baroda                                                                                                   | 2920                                                                                                             | 83.70                                                                                                            |
| Allahabad Bank                                                                                                   | 481                                                                                                              | 3.68                                                                                                             |
| Union Bank of India                                                                                              | 815                                                                                                              | 23.48                                                                                                            |
| Canara Bank                                                                                                      | 696                                                                                                              | 41.52                                                                                                            |
| Central Bank of India                                                                                            | 129                                                                                                              | 9.53                                                                                                             |
| Punjab National Bank                                                                                             | 1631                                                                                                             | 52.45                                                                                                            |
| State Bank of India                                                                                              | 9047                                                                                                             | 169.81                                                                                                           |
| Bank of India                                                                                                    | 1247                                                                                                             | 20.79                                                                                                            |
| Syndicate Bank                                                                                                   | 492                                                                                                              | 10.16                                                                                                            |
| United Bank of India                                                                                             | 39                                                                                                               | 1.04                                                                                                             |
| UCO Bank                                                                                                         | 169                                                                                                              | 10.16                                                                                                            |
| Bank of Maharashtra                                                                                              | 248                                                                                                              | 6.65                                                                                                             |
| Andhra Bank                                                                                                      | 52                                                                                                               | 1.22                                                                                                             |
| Corporation Bank                                                                                                 | 221                                                                                                              | 4.80                                                                                                             |
| Indian Bank                                                                                                      | 474                                                                                                              | 10.00                                                                                                            |
| Indian Overseas Bank                                                                                             | 426                                                                                                              | 6.63                                                                                                             |
| Punjab and Sindh Bank                                                                                            | 141                                                                                                              | 5.20                                                                                                             |
| Oriental Bank of Commerce                                                                                        | 1818                                                                                                             | 44.58                                                                                                            |
| South Indian Bank                                                                                                | 0                                                                                                                | 0.00                                                                                                             |
| Nainital Bank Ltd.                                                                                               | 49                                                                                                               | 1.73                                                                                                             |
| Federal Bank                                                                                                     | 21                                                                                                               | 0.93                                                                                                             |
| Axis Bank *                                                                                                      | 1013                                                                                                             | 39.40                                                                                                            |
| HDFC Bank *                                                                                                      | 163                                                                                                              | 2.84                                                                                                             |
| ICICI Bank                                                                                                       | 122                                                                                                              | 4.83                                                                                                             |
| UP Sahkari Gram Vikas Bank                                                                                       | 0                                                                                                                | 0.00                                                                                                             |
| Aryavart Bank                                                                                                    | 326                                                                                                              | 3.22                                                                                                             |
| Baroda Uttar Pradesh Gramin Bank                                                                                 | 75                                                                                                               | 2.35                                                                                                             |
| Kashi Gomti Samyut Gramin Bank                                                                                   | 85                                                                                                               | 3.46                                                                                                             |
| Purvanchal Gramin Bank                                                                                           | 11                                                                                                               | 0.27                                                                                                             |
| Prathama UP Gramin Bank                                                                                          | 158                                                                                                              | 2.11                                                                                                             |
| Total                                                                                                            | 23069                                                                                                            | 566.54                                                                                                           |

Note: * Data Reported as on Dec' 2019

Source: SLBC-UP

** Provisional Data

| Annexure-II referred in reply to part (e) of reply to Lok Sabha unstarred question no. 3639 due for answer on 16.03.2020   | Annexure-II referred in reply to part (e) of reply to Lok Sabha unstarred question no. 3639 due for answer on 16.03.2020   | Annexure-II referred in reply to part (e) of reply to Lok Sabha unstarred question no. 3639 due for answer on 16.03.2020   |
|----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| S.N.                                                                                                                       | Pradesh during the Name of the District                                                                                    | 2019-20 (upto 29.02.2020)* Number of Applications Received                                                                 |
| 1                                                                                                                          | AGRA                                                                                                                       | 655                                                                                                                        |
| 2                                                                                                                          | ALIGARH                                                                                                                    | 253                                                                                                                        |
| 3                                                                                                                          | AMBEDKAR NAGAR                                                                                                             | 68                                                                                                                         |
| 4                                                                                                                          | AMETHI                                                                                                                     | 114                                                                                                                        |
| 5                                                                                                                          | AMROHA                                                                                                                     | 62                                                                                                                         |
| 6                                                                                                                          | AURAIYA                                                                                                                    | 32                                                                                                                         |
| 7                                                                                                                          | AYODHYA                                                                                                                    | 138                                                                                                                        |
| 8                                                                                                                          | AZAMGARH                                                                                                                   | 131                                                                                                                        |
| 9                                                                                                                          | BAGHPAT                                                                                                                    | 114                                                                                                                        |
| 10                                                                                                                         | BAHRAICH                                                                                                                   | 40                                                                                                                         |
| 11                                                                                                                         | BALLIA                                                                                                                     | 88                                                                                                                         |
| 12                                                                                                                         | BALRAMPUR                                                                                                                  | 41                                                                                                                         |
| 13                                                                                                                         | BANDA                                                                                                                      | 47                                                                                                                         |
| 14                                                                                                                         | BARABANKI                                                                                                                  | 106                                                                                                                        |
| 15                                                                                                                         | BAREILLY                                                                                                                   | 501                                                                                                                        |
| 16                                                                                                                         | BASTI                                                                                                                      | 87                                                                                                                         |
| 17                                                                                                                         | BHADOHI                                                                                                                    | 72                                                                                                                         |
| 18                                                                                                                         | BIJNOR                                                                                                                     | 248                                                                                                                        |
| 19                                                                                                                         | BUDAUN                                                                                                                     | 97                                                                                                                         |
| 20                                                                                                                         | BULANDSHAHAR                                                                                                               | 186                                                                                                                        |
| 21                                                                                                                         | CHANDAULI                                                                                                                  | 87                                                                                                                         |
| 22                                                                                                                         | CHITRAKOOT                                                                                                                 | 14                                                                                                                         |
| 23                                                                                                                         | DEORIA                                                                                                                     | 137                                                                                                                        |
| 24                                                                                                                         | ETAH                                                                                                                       | 93                                                                                                                         |
| 25                                                                                                                         | ETAWAH                                                                                                                     | 49                                                                                                                         |
| 26                                                                                                                         | FARRUKHABAD                                                                                                                | 78                                                                                                                         |
| 27                                                                                                                         | FATEHPUR                                                                                                                   | 78                                                                                                                         |
| 28                                                                                                                         | FIROZABAD                                                                                                                  | 183                                                                                                                        |
| 29                                                                                                                         | G.B.Nagar                                                                                                                  | 534                                                                                                                        |
| 30                                                                                                                         | GHAZIABAD                                                                                                                  | 745                                                                                                                        |
| 31                                                                                                                         | GHAZIPUR                                                                                                                   | 143                                                                                                                        |
| 32                                                                                                                         | GONDA                                                                                                                      | 97                                                                                                                         |
| 33                                                                                                                         | GORAKHPUR                                                                                                                  | 415                                                                                                                        |
| 34                                                                                                                         | HAMIRPUR                                                                                                                   | 39                                                                                                                         |
| 35                                                                                                                         | HAPUR                                                                                                                      | 195                                                                                                                        |
| 36                                                                                                                         | HARDOI                                                                                                                     | 86                                                                                                                         |
| 37                                                                                                                         | HATHRAS                                                                                                                    | 141                                                                                                                        |

| 38   | JALAUN           |    57 |
|------|------------------|-------|
| 39   | JAUNPUR          |   168 |
| 40   | JHANSI           |   196 |
| 41   | KANNAUJ          |    54 |
| 42   | KANPUR DEHAT     |   159 |
| 43   | KANPUR NAGAR     |  1216 |
| 44   | KASHGANJ         |    69 |
| 45   | KAUSHAMBI        |    23 |
| 46   | KUSHI NAGAR      |    68 |
| 47   | LAKHIMPUR KHERI  |    83 |
| 48   | LALITPUR         |    26 |
| 49   | LUCKNOW          |  1995 |
| 50   | MAHARAJGANJ      |    59 |
| 51   | MAHOBA           |    21 |
| 52   | MAINPURI         |    73 |
| 53   | MATHURA          |   249 |
| 54   | MAU              |    55 |
| 55   | MEERUT           |   550 |
| 56   | MIRZAPUR         |    84 |
| 57   | MORADABAD        |   294 |
| 58   | MUZAFFARNAGAR    |   253 |
| 59   | PILIBHIT         |   121 |
| 60   | PRATAPGARH       |    86 |
| 61   | PRAYAGRAJ        |   569 |
| 62   | RAEBARELI        |   134 |
| 63   | RAMPUR           |   132 |
| 64   | SAHARANPUR       |   327 |
| 65   | SAMBHAL          |    65 |
| 66   | SANT KABIR NAGAR |    49 |
| 67   | SHAHAJAHANPUR    |   140 |
| 68   | SHAMLI           |   140 |
| 69   | SHRAVASTI        |    10 |
| 70   | SIDDHARTH NAGAR  |    47 |
| 71   | SITAPUR          |    84 |
| 72   | SONEBHADRA       |    96 |
| 73   | SULTANPUR        |    97 |
| 74   | UNNAO            |    90 |
| 75   | VARANASI         |   778 |
|      | TOTAL            | 14889 |

Source: SLBC-UP *Provisional Data