Lok Sabha Question No. 1499 (UNSTARRED), answered on 2019-07-01
Subject: Education Loan
Ministry: FINANCE
Asked by: Suresh Kodikunnil

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

## UNSTARRED QUESTION NO. 1499 TO BE ANSWERED ON THE 1 st  JULY, 2019, ASHADHA 10, 1941 (SAKA)

Education Loan

## 1499. SHRI KODIKUNNIL SURESH:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  Government  is  aware  of  the  unnecessary  delay  in  disbursal  of education loan from nationalized banks in India;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the Government has given any instructions to the nationalized banks for submitting more collateral securities from students applying for education loans; and;
- (d) if so, the details thereof and the details of sanctioned and rejected application in nationalized  banks  during  the  last  three  years  in  the  country,  State-wise  including Kerala?

## ANSWER (FINANCE MINISTER) (SMT. NIRMALA SITHARAMAN)

- (a) & (b):  The  education  loans  are  sanctioned  as  per  the  guidelines  laid  down  by Indian Banks' Association (IBA) from time to time. The process involved in sanction & disbursement of education loan is as under:
- I. Upon  receipt  of  application,  standard  acknowledgement  giving  a  reference number is issued. The acknowledgement contains contact details of the bank official who could be contacted in case of delay in disposal of application.
- II. Normally, sanction/rejection is communicated within 15 days of receipt of duly completed application with supporting documents.
- III. Rejection  of  loan  application,  if  any,  is  done  with  the  concurrence  of  the controlling  authority  of  the  branch  concerned  and  conveyed  to  the  student stating reason for rejection.
- IV. The loan is disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of equipments / instruments to the extent possible.

Further,  Government  has  launched  Vidya  Lakshmi  Portal  to  ensure  students  can avail loans easily through single window system of banks.

However,  Complaints  regarding  education  loans  as  and  when  received  by  the Government are taken up with banks concerned for corrective action.

- (c)   No such instructions have been given. Presently, all education loans upto Rs 4 Lakh  are  collateral  free  as  per  Reserve  Bank  of  India  (RBI)  guidelines.  Further, 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.
- (d) As  per  the  information  furnished  by  PSBs,  details  of  sanctioned  and  rejected application in nationalized banks during the last three years in the country, State-wise including Kerala are at Annexure-I.

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| Details of sanctioned and rejected applications in Public Sector Banks (PSBs)   | Details of sanctioned and rejected applications in Public Sector Banks (PSBs)   | Details of sanctioned and rejected applications in Public Sector Banks (PSBs)   | Details of sanctioned and rejected applications in Public Sector Banks (PSBs)   | Details of sanctioned and rejected applications in Public Sector Banks (PSBs)   | Details of sanctioned and rejected applications in Public Sector Banks (PSBs)   |
|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| States                                                                          | 2016-17                                                                         | 2016-17                                                                         | 2017-18                                                                         | 2017-18                                                                         | 201                                                                             |
|                                                                                 | Total No. of Application Sanctioned                                             | Total No. of Application Rejected                                               | Total No. of Application Sanctioned                                             | Total No. of Application Rejected                                               | Total No. of Application Sanctioned                                             |
| Andaman & Nicobar Island                                                        | 44                                                                              | 3                                                                               | 45                                                                              | 4                                                                               | 44                                                                              |
| Andhra Pradesh                                                                  | 11749                                                                           | 695                                                                             | 13101                                                                           | 774                                                                             | 15100                                                                           |
| Arunachal Pradesh                                                               | 50                                                                              | 5                                                                               | 49                                                                              | 5                                                                               | 43                                                                              |
| Assam                                                                           | 1768                                                                            | 202                                                                             | 1989                                                                            | 188                                                                             | 1709                                                                            |
| Bihar                                                                           | 7676                                                                            | 479                                                                             | 14813                                                                           | 909                                                                             | 4113                                                                            |
| Chandigarh                                                                      | 536                                                                             | 47                                                                              | 535                                                                             | 53                                                                              | 623                                                                             |
| Chattisgarh                                                                     | 2308                                                                            | 216                                                                             | 2386                                                                            | 188                                                                             | 2194                                                                            |
| Dadra & Nagar Haveli                                                            | 7                                                                               | 0                                                                               | 32                                                                              | 1                                                                               | 37                                                                              |
| Daman & Diu                                                                     | 23                                                                              | 2                                                                               | 27                                                                              | 1                                                                               | 21                                                                              |
| Delhi                                                                           | 4954                                                                            | 379                                                                             | 5865                                                                            | 419                                                                             | 5484                                                                            |
| Goa                                                                             | 596                                                                             | 49                                                                              | 680                                                                             | 47                                                                              | 748                                                                             |
| Gujarat                                                                         | 5245                                                                            | 412                                                                             | 7300                                                                            | 503                                                                             | 8945                                                                            |
| Haryana                                                                         | 3306                                                                            | 217                                                                             | 4280                                                                            | 263                                                                             | 4389                                                                            |
| Himachal Pradesh                                                                | 1576                                                                            | 68                                                                              | 1884                                                                            | 82                                                                              | 1626                                                                            |
| Jammu & Kashmir                                                                 | 405                                                                             | 32                                                                              | 475                                                                             | 35                                                                              | 483                                                                             |
| Jharkhand                                                                       | 9529                                                                            | 484                                                                             | 9692                                                                            | 403                                                                             | 8121                                                                            |
| Karnataka                                                                       | 17310                                                                           | 667                                                                             | 18864                                                                           | 1048                                                                            | 17904                                                                           |
| Kerala                                                                          | 15889                                                                           | 866                                                                             | 17405                                                                           | 1255                                                                            | 18977                                                                           |
| Lakshadweep                                                                     | 161                                                                             | 2                                                                               | 148                                                                             | 0                                                                               | 83                                                                              |
| Madhya Pradesh                                                                  | 8318                                                                            | 664                                                                             | 8876                                                                            | 620                                                                             | 7852                                                                            |
| Maharashtra                                                                     | 23162                                                                           | 1829                                                                            | 26156                                                                           | 1803                                                                            | 26633                                                                           |
| Manipur                                                                         | 110                                                                             | 21                                                                              | 152                                                                             | 40                                                                              | 109                                                                             |
| Meghalaya                                                                       | 500                                                                             | 53                                                                              | 470                                                                             | 42                                                                              | 417                                                                             |
| Mizoram                                                                         | 27                                                                              | 4                                                                               | 27                                                                              | 6                                                                               | 21                                                                              |
| Nagaland                                                                        | 354                                                                             | 13                                                                              | 364                                                                             | 14                                                                              | 287                                                                             |
| Orissa                                                                          | 5208                                                                            | 322                                                                             | 4876                                                                            | 373                                                                             | 4487                                                                            |
| Puducherry                                                                      | 673                                                                             | 80                                                                              | 655                                                                             | 107                                                                             | 732                                                                             |
| Punjab                                                                          | 4107                                                                            | 233                                                                             | 4644                                                                            | 259                                                                             | 4815                                                                            |
| Rajasthan                                                                       | 3947                                                                            | 275                                                                             | 5256                                                                            | 363                                                                             | 5388                                                                            |
| Sikkim                                                                          | 76                                                                              | 7                                                                               | 58                                                                              | 4                                                                               | 70                                                                              |
| Tamil Nadu                                                                      | 37243                                                                           | 2675                                                                            | 32942                                                                           | 4867                                                                            | 26259                                                                           |
| Telangana                                                                       | 6656                                                                            | 392                                                                             | 7606                                                                            | 508                                                                             | 8239                                                                            |
| Tripura                                                                         | 335                                                                             | 37                                                                              | 265                                                                             | 34                                                                              | 252                                                                             |
| Uttarakhand                                                                     | 4229                                                                            | 286                                                                             | 4991                                                                            | 326                                                                             | 5237                                                                            |
| Uttar Pradesh                                                                   | 10385                                                                           | 498                                                                             | 11693                                                                           | 726                                                                             | 9622                                                                            |
| West Bengal                                                                     | 7615                                                                            | 822                                                                             | 8361                                                                            | 853                                                                             | 7957                                                                            |
| Total                                                                           | 196077                                                                          | 13038                                                                           | 216962                                                                          | 17122                                                                           | 199021                                                                          |