Lok Sabha Question No. 125 (UNSTARRED), answered on 2023-12-04
Subject: Educational Loans by Public Sector Banks
Ministry: FINANCE
Asked by: Balashowry Vallabbhaneni

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

## LOK SABHA UNSTARRED QUESTION NO. 125

TO BE ANSWERED ON THE   DECEMBER 4 th , 2023, AGRAHAYANA 13, 1945 (Saka)

## 'EDUCATIONAL LOANS BY PUBLIC SECTOR BANKS'

## 125. SHRI BALASHOWRY VALLABHANENI:

Will the Minister of FINANCE be pleased to state:

- (a) whether it is true that nearly 90 per cent of educational loans are given by Public Sector Banks (PSBs);
- (b) the details of education loan applications received by PSBs, private banks and foreign banks during the last five years, year-wise, bank-wise and State-wise;
- (c) whether the educational loan target for 2022-23 has been reduced by 14 per cent as compared to 2021-22 by the Government;
- (d) if so, the reasons therefor and the reasons for slow disbursal of educational loans by banks; and
- (e) the reasons that PSBs are not inclined to sanction educational loans without collateral and the details of educational loan target set for 2023-24 and progress made so far?

## ANSWER

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

- (a) As informed by the Indian Bank's Association (IBA), the share of educational loans given by Public Sector Banks (PSBs) under IBA's Model Education loan scheme for pursuing higher education in India and Abroad during FY  2022-23 was approximately 83%.
- (b) Based on the information provided by IBA, the details of education loan applications received by PSBs and Private Sector banks during the last five years, year-wise, and State-wise is provided at Annex I.
- (c) &(d)   The educational loan disbursement target for FY 2022-23 is Rs.20,450 crore vis-àvis the target Rs. 16,965 crores fixed for FY 2021-22, which represents an increase of 20.54 % on a Year-on-Year (YoY) basis.
- (e) Scheduled Commercial Banks (SCBs) follow IBA's Model Education Loan Scheme for  pursuing  Higher  Education  in  India  and  Abroad  which, inter-alia, provides collateral free loans up to Rs.7.50 lakh.

Further, as informed by PSBs, they also provide collateral free loan above Rs.7.50 lakhs for premier institutes as per their board approved policies.

As against the education loan disbursement target of Rs.29,725 crore for FY 202324, Rs.18,083 crore have been disbursed till 31.10.2023 by PSBs.

*****

## Annex-I as referred to in Part (b) of the Reply

| Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   | Number of Educational Loan Application Received by Banks during Financial Year   |
|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
|                                                                                  | 2018-19                                                                          | 2018-19                                                                          | 2018-19                                                                          | 2019-20                                                                          | 2019-20                                                                          | 2019-20                                                                          | 2020-21                                                                          | 2020-21                                                                          | 2020-21                                                                          | 2021-22                                                                          | 2021-22                                                                          | 2021-22                                                                          | 2022-23                                                                          | 2022-23                                                                          | 2022-23                                                                          |
|                                                                                  | PSBs                                                                             | Pvt. Bank                                                                        | Total                                                                            | PSBs                                                                             | Pvt. Bank                                                                        | Total                                                                            | PSBs                                                                             | Pvt. Bank                                                                        | Total                                                                            | PSBs                                                                             | Pvt. Bank                                                                        | Total                                                                            | PSBs                                                                             | Pvt. Bank                                                                        | Total                                                                            |
| Andaman and Nicobar Islands                                                      | 49                                                                               | 2                                                                                | 51                                                                               | 72                                                                               | 1                                                                                | 73                                                                               | 47                                                                               | 6                                                                                | 53                                                                               | 108                                                                              | 9                                                                                | 117                                                                              | 308                                                                              | 8                                                                                | 316                                                                              |
| Andhra Pradesh                                                                   | 18082                                                                            | 1192                                                                             | 19274                                                                            | 18858                                                                            | 1689                                                                             | 20547                                                                            | 14487                                                                            | 1827                                                                             | 16314                                                                            | 22906                                                                            | 2848                                                                             | 25754                                                                            | 43546                                                                            | 3169                                                                             | 46715                                                                            |
| Arunachal Pradesh                                                                | 70                                                                               | 3                                                                                | 73                                                                               | 62                                                                               | 1                                                                                | 63                                                                               | 35                                                                               | 1                                                                                | 36                                                                               | 59                                                                               | 2                                                                                | 61                                                                               | 116                                                                              | 7                                                                                | 123                                                                              |
| Assam                                                                            | 2075                                                                             | 103                                                                              | 2178                                                                             | 2735                                                                             | 83                                                                               | 2818                                                                             | 2132                                                                             | 115                                                                              | 2247                                                                             | 2993                                                                             | 169                                                                              | 3162                                                                             | 4723                                                                             | 236                                                                              | 4959                                                                             |
| Bihar                                                                            | 5238                                                                             | 691                                                                              | 5929                                                                             | 5645                                                                             | 989                                                                              | 6634                                                                             | 5508                                                                             | 884                                                                              | 6392                                                                             | 7152                                                                             | 1213                                                                             | 8365                                                                             | 8978                                                                             | 1564                                                                             | 10542                                                                            |
| Chandigarh                                                                       | 739                                                                              | 97                                                                               | 836                                                                              | 849                                                                              | 87                                                                               | 936                                                                              | 559                                                                              | 65                                                                               | 624                                                                              | 800                                                                              | 244                                                                              | 1044                                                                             | 964                                                                              | 645                                                                              | 1609                                                                             |
| Chhattisgarh                                                                     | 2410                                                                             | 162                                                                              | 2572                                                                             | 2821                                                                             | 248                                                                              | 3069                                                                             | 2034                                                                             | 185                                                                              | 2219                                                                             | 2848                                                                             | 245                                                                              | 3093                                                                             | 3930                                                                             | 363                                                                              | 4293                                                                             |
| Dadra &Nagar Haveli and Daman &Diu                                               | 442                                                                              | 11                                                                               | 453                                                                              | 490                                                                              | 7                                                                                | 497                                                                              | 274                                                                              | 4                                                                                | 278                                                                              | 475                                                                              | 25                                                                               | 500                                                                              | 575                                                                              | 21                                                                               | 596                                                                              |
| Delhi                                                                            | 6248                                                                             | 1339                                                                             | 7587                                                                             | 7610                                                                             | 1535                                                                             | 9145                                                                             | 6736                                                                             | 1436                                                                             | 8172                                                                             | 8591                                                                             | 2998                                                                             | 11589                                                                            | 10292                                                                            | 6304                                                                             | 16596                                                                            |
| Goa                                                                              | 2142                                                                             | 30                                                                               | 2172                                                                             | 2323                                                                             | 19                                                                               | 2342                                                                             | 1046                                                                             | 12                                                                               | 1058                                                                             | 1281                                                                             | 35                                                                               | 1316                                                                             | 1694                                                                             | 72                                                                               | 1766                                                                             |
| Gujarat                                                                          | 9049                                                                             | 1720                                                                             | 10769                                                                            | 10472                                                                            | 1741                                                                             | 12213                                                                            | 7829                                                                             | 1621                                                                             | 9450                                                                             | 10423                                                                            | 6485                                                                             | 16908                                                                            | 13419                                                                            | 14613                                                                            | 28032                                                                            |
| Haryana                                                                          | 4117                                                                             | 599                                                                              | 4716                                                                             | 5155                                                                             | 663                                                                              | 5818                                                                             | 4665                                                                             | 766                                                                              | 5431                                                                             | 6771                                                                             | 1218                                                                             | 7989                                                                             | 9293                                                                             | 1840                                                                             | 11133                                                                            |
| Himachal Pradesh                                                                 | 1289                                                                             | 30                                                                               | 1319                                                                             | 1890                                                                             | 64                                                                               | 1954                                                                             | 1392                                                                             | 43                                                                               | 1435                                                                             | 2120                                                                             | 101                                                                              | 2221                                                                             | 3215                                                                             | 134                                                                              | 3349                                                                             |
| Jammu and Kashmir                                                                | 724                                                                              | 2011                                                                             | 2735                                                                             | 1067                                                                             | 1723                                                                             | 2790                                                                             | 670                                                                              | 1278                                                                             | 1948                                                                             | 1150                                                                             | 1729                                                                             | 2879                                                                             | 1384                                                                             | 2170                                                                             | 3554                                                                             |
| Jharkhand                                                                        | 6585                                                                             | 425                                                                              | 7010                                                                             | 7095                                                                             | 541                                                                              | 7636                                                                             | 5815                                                                             | 521                                                                              | 6336                                                                             | 7989                                                                             | 757                                                                              | 8746                                                                             | 9986                                                                             | 829                                                                              | 10815                                                                            |
| Karnataka                                                                        | 21640                                                                            | 2334                                                                             | 23974                                                                            | 29495                                                                            | 2453                                                                             | 31948                                                                            | 23902                                                                            | 2160                                                                             | 26062                                                                            | 36830                                                                            | 3465                                                                             | 40295                                                                            | 47372                                                                            | 6114                                                                             | 53486                                                                            |
| Kerala                                                                           | 22211                                                                            | 3994                                                                             | 26205                                                                            | 33348                                                                            | 4393                                                                             | 37741                                                                            | 27796                                                                            | 2044                                                                             | 29840                                                                            | 48627                                                                            | 3595                                                                             | 52222                                                                            | 61874                                                                            | 4712                                                                             | 66586                                                                            |
| Ladakh                                                                           | 12                                                                               | 0                                                                                | 12                                                                               | 20                                                                               | 6                                                                                | 26                                                                               | 15                                                                               | 3                                                                                | 18                                                                               | 11                                                                               | 7                                                                                | 18                                                                               | 18                                                                               | 8                                                                                | 26                                                                               |
| Lakshadweep                                                                      | 776                                                                              | 0                                                                                | 776                                                                              | 724                                                                              | 0                                                                                | 724                                                                              | 146                                                                              | 0                                                                                | 146                                                                              | 285                                                                              | 0                                                                                | 285                                                                              | 502                                                                              | 0                                                                                | 502                                                                              |
| Madhya Pradesh                                                                   |                                                                                  | 1133                                                                             | 11507                                                                            |                                                                                  | 1226                                                                             | 13695                                                                            | 9214                                                                             | 917                                                                              | 10131                                                                            | 12453                                                                            | 1547                                                                             | 14000                                                                            | 16798                                                                            | 2280                                                                             | 19078                                                                            |
|                                                                                  | 10374                                                                            |                                                                                  |                                                                                  | 12469                                                                            |                                                                                  |                                                                                  |                                                                                  |                                                                                  |                                                                                  |                                                                                  |                                                                                  |                                                                                  |                                                                                  |                                                                                  |                                                                                  |

| Maharashtra   |   38299 |   4565 |   42864 |   41166 |   4887 |   46053 |   33194 |   3770 |   36964 |   52401 |   7682 |   60083 |   63277 |   15417 |   78694 |
|---------------|---------|--------|---------|---------|--------|---------|---------|--------|---------|---------|--------|---------|---------|---------|---------|
| Manipur       |     146 |     15 |     161 |     225 |     25 |     250 |      93 |      8 |     101 |     121 |     14 |     135 |     289 |      41 |     330 |
| Meghalaya     |     425 |      5 |     430 |     509 |      3 |     512 |     346 |      5 |     351 |     530 |      6 |     536 |     643 |       8 |     651 |
| Mizoram       |      35 |      0 |      35 |      34 |      0 |      34 |      26 |      2 |      28 |      35 |      2 |      37 |     516 |       3 |     519 |
| Nagaland      |     471 |      4 |     475 |     578 |      3 |     581 |     280 |      3 |     283 |     357 |      6 |     363 |     524 |       9 |     533 |
| Odisha        |    5793 |    451 |    6244 |    5961 |    488 |    6449 |    4772 |    314 |    5086 |    6633 |    442 |    7075 |   10359 |     585 |   10944 |
| Punjab        |    3899 |    398 |    4297 |    5043 |    531 |    5574 |    4222 |    351 |    4573 |    6560 |    759 |    7319 |    8800 |    1614 |   10414 |
| Puducherry    |    1600 |     59 |    1659 |    2022 |     50 |    2072 |    1191 |     26 |    1217 |    1783 |     48 |    1831 |    2445 |      81 |    2526 |
| Rajasthan     |    5807 |    432 |    6239 |    7668 |    483 |    8151 |    6009 |    414 |    6423 |    8021 |    592 |    8613 |   10567 |    1028 |   11595 |
| Sikkim        |    6855 |      0 |    6855 |    7171 |      1 |    7172 |    3692 |      1 |    3693 |    7033 |      2 |    7035 |    7781 |       7 |    7788 |
| Tamil Nadu    |   24508 |   5792 |   30300 |   30488 |   4644 |   35132 |   20485 |   2922 |   23407 |   36741 |   4283 |   41024 |   53010 |    7540 |   60550 |
| Telangana     |    9748 |   1122 |   10870 |   10943 |   1910 |   12853 |    9539 |   1673 |   11212 |   16241 |   3406 |   19647 |   23444 |    7064 |   30508 |
| Tripura       |     398 |     17 |     415 |     472 |     11 |     483 |     349 |     16 |     365 |     573 |     22 |     595 |     777 |      76 |     853 |
| Uttar Pradesh |   12946 |   1531 |   14477 |   16602 |   2049 |   18651 |   15074 |   1388 |   16462 |   20794 |   2164 |   22958 |   26744 |    3702 |   30446 |
| Uttarakhand   |    2171 |    149 |    2320 |    3370 |    221 |    3591 |    2935 |    136 |    3071 |    3958 |    289 |    4247 |    5400 |     356 |    5756 |
| West Bengal   |    9063 |   1587 |   10650 |   11857 |   1682 |   13539 |   10181 |   1160 |   11341 |   27852 |   2742 |   30594 |   33882 |    4767 |   38649 |
| Total         |  236436 |  32003 |  268439 |  287309 |  34457 |  321766 |  226690 |  26077 |  252767 |  363505 |  49151 |  412656 |  487445 |   87387 |  574832 |

Source: IBA