Lok Sabha Question No. 3131 (UNSTARRED), answered on 2023-03-20
Subject: Education Loans
Ministry: FINANCE
Asked by: Aparajita Sarangi

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 3131

ANSWERED ON THE 20 th  MARCH, 2023/ PHALGUNA 29, 1944 (Saka)

## 'EDUCATION LOANS'

## 3131 : SHRIMATI APARAJITA SARANGI

Will the Minister of FINANCE be pleased to state:

(a)  whether  the  Government  has  formulated  any  new  schemes/policies  to  provide  easy educational loan to students in the recent years;

(b) if so, the details thereof including the funds released/targets set and the achievements made under the schemes during the last three years and the current year; and

(c) whether any survey has been made by the Banks for the estimated need of loan for higher education in future and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR. BHAGWAT KARAD)

(a) and (b) 'The Indian Banks' Association (IBA) Model Educational Loan scheme for pursuing Higher education in India and Abroad' was formulated in the year 2001. Since then the scheme had been modified from time to time, based on the experience gained and feedbacks received during its implementation over the years. The last revision was undertaken during the year 2021.

Model Education Loan Scheme encompasses, inter-alia, broad  guidelines  regarding  eligibility criteria, courses eligible for loan, quantum of finance, security and margin, rate of interest etc. Banks are broadly guided by the above Scheme while sanctioning educational loans.

Further,  Government  has  also  launched  an  online  portal viz; Vidya  Lakshmi  Portal  (VLP)  to ensure  hassle  free  education  loans  through  a  single  window  system  to  students.  Student  can apply, view, and track the education loan applications submitted to banks anytime, anywhere by accessing the portal. Further, the decision on a loan application is to be reported by the banks on VLP.

The targets set and the achievements made by the Public Sector Banks (PSBs) during the last three years and the current year is as under:

| Year                        | Amount in Rs crore   | Amount in Rs crore   |
|-----------------------------|----------------------|----------------------|
|                             | Targets Set          | Achievements         |
| 2019-20                     | 16,626               | 15,263               |
| 2020-21                     | 16,965               | 11,555               |
| 2021-22                     | 16,965               | 16,183               |
| 2022-23 (01.04.22-31.12.22) | 20,450               | 17,746               |
| Source: PSBs                | Source: PSBs         | Source: PSBs         |

Due to Covid Crisis, targets for the last three years had been kept at the same level. However, for the FY 2022-23, the targets have been appropriately enhanced by 20% over the previous year achievement/target, whichever is higher.

(c) As reported by PSBs, no such specific survey has been made by the Banks for the estimated need  of  loan  for  higher  education  in  future.  However,  continuous  feedback/suggestions  are regularly solicited through internal mechanism of the banks so as to further improve upon the existing scheme, while ensuring necessary benchmarking.

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