Lok Sabha Question No. 1126 (UNSTARRED), answered on 2024-07-29
Subject: Education Loan
Ministry: FINANCE
Asked by: Shri Balwant Baswant Wankhade, Shri E T Mohammed Basheer

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO. 1126

ANSWERED ON THE   JULY 29, 2024, SHRAVAN 7, 1946 (SAKA)

## EDUCATION LOAN

## 1126. SHRI BALWANT BASWANT WANKHADE:

## SHRI E T MOHAMMED BASHEER:

Will the Minister of FINANCE be pleased to state:

(a) whether the Banks in Maharashtra make it a very arduous task for the students to avail education loan;

(b) if so, the details thereof;

(c) the corrective steps taken/being taken by the Government in this regard;

(d)  the  number  of  students  not  able  to  complete  their  studies  due  to  difficulty  in  availing education loan in Maharashtra;

(e) the steps taken by the Government to ensure that the education loan is provided to all the students in a timely manner; and

(f) the bank-wise details and district-wise total number of students who applied for education loan and loan distributed by banks in Maharashtra during the year 2022-23, bank-wise?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (e) All Scheduled Commercial Banks (SCBs) have been advised by Reserve Bank of India to adopt Model Education Loan Scheme, formulated by Indian Banks' Association (IBA). The main features of the scheme are as under:

-  The scheme provides need-based education loan.
-  No collateral security or third-party guarantee is required for loans amount up to Rs. 7.50  lakhs,  provided  they  are  eligible  for  Central  Sector  Interest  Subsidy  Scheme (CSIS)/ Credit Guarantee Fund Scheme for Education loan (CGFSEL)
-  No Margin for loans up to Rs. 4 lakhs.
-  Moratorium period is allowed upto study period plus one year in all cases.
-  Repayment period (after moratorium) is available upto 15 years for all loans.

Further, as per the information furnished by Public Sector Banks, there has been steady growth in the number of accounts of education loan and the total amount of loan disbursed in the state of Maharashtra. While, the number of accounts of education loan has gone up from

48,128 in FY 2021-22 to 72,971 in FY 2023-24, indicating a growth of 51.62% during this period, the total amount of loan disbursed has gone up from Rs.2025.91 crore to Rs.3443.76 crore indicating a growth of 70% during the same period.

Government of India 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.

As per the IBA Model Education Loan Scheme, rejection of loan application by a bank, if any, shall be done with the concurrence of the next higher authority and conveyed to the student stating reason for rejection. This ensures a second level scrutiny of rejection so that none of the eligible loan proposals are rejected under this scheme.

(f) The  district-wise  total  number  of  students  who  applied  for  education  loan  is  not centrally  maintained.  However,  bank-wise  distribution  of  education  loan  in  the  state  of Maharashtra is provided in the Annexure.

****

## Annexure as referred to in Part (f) of the reply to the Lok Sabha Unstarred Question number 1126

| Education Loan Disbursed in the State of Maharashtra during the FY 2022-23   | Education Loan Disbursed in the State of Maharashtra during the FY 2022-23   | Education Loan Disbursed in the State of Maharashtra during the FY 2022-23   | Education Loan Disbursed in the State of Maharashtra during the FY 2022-23   |
|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|------------------------------------------------------------------------------|
| State                                                                        | Bank                                                                         | No. of A/c                                                                   | Amount Disbursed (Rs. In crore)                                              |
| Maharashtra                                                                  | Bank of Baroda                                                               | 6889                                                                         | 467.51                                                                       |
| Maharashtra                                                                  | Bank of India                                                                | 8874                                                                         | 194.68                                                                       |
| Maharashtra                                                                  | Bank of Maharashtra                                                          | 9850                                                                         | 342.1                                                                        |
| Maharashtra                                                                  | Canara Bank                                                                  | 2767                                                                         | 157.18                                                                       |
| Maharashtra                                                                  | Central Bank of India                                                        | 2802                                                                         | 111.51                                                                       |
| Maharashtra                                                                  | Indian Bank                                                                  | 1194                                                                         | 247.93                                                                       |
| Maharashtra                                                                  | Indian Overseas Bank                                                         | 385                                                                          | 11.66                                                                        |
| Maharashtra                                                                  | Punjab National Bank                                                         | 1583                                                                         | 109.64                                                                       |
| Maharashtra                                                                  | Punjab & Sind Bank                                                           | 107                                                                          | 7.69                                                                         |
| Maharashtra                                                                  | State Bank of India                                                          | 22626                                                                        | 1156.1                                                                       |
| Maharashtra                                                                  | UCO Bank                                                                     | 220                                                                          | 9.79                                                                         |
| Maharashtra                                                                  | Union Bank of India                                                          | 4968                                                                         | 224.42                                                                       |
|                                                                              | TOTAL                                                                        | 62,265                                                                       | 3040.21                                                                      |