Lok Sabha Question No. 1102 (UNSTARRED), answered on 2016-07-22
Subject: Educational Loan
Ministry: FINANCE
Asked by: PRATAPRAO GANPATRAO JADHAV, RAM TAHAL CHOUDHARY, GOPALAKRISHNAN CHINNARAJ, K.R.P. PRABAKARAN

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. † 1102 TO BE ANSWERED ON THE 22 nd  APRIL, 2016, ASHADHA31, 1938 (SAKA) EDUCATIONAL LOAN

## † 1102.  SHRI PRATAPRAO JADHAV: SHRI RAM TAHAL CHOUDHARY: DR.C. GOPALAKRISHNAN:

SHRI K.R.P. PRABAKARAN:

Will the Minister of Finance be pleased to state:

- (a) the  number  of  students  benefited,  percentage  of  educational  loan  disbursed/  outstanding  and  interest  being  charged  by  the public/private sector banks from the students of the General, Scheduled   Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), Below Poverty Line (BPL) and minority communities, State/UT and Bank-wise during each of the last three years and the current year;
- (b) whether the banks have followed the guidelines/criteria issued by the Reserve Bank of India(RBI) in this regard, if so, the details thereof along with the detailed guidelines/criteria in this regard;
- (c) whether the Government is considering dispensing with the condition/ requirement of taking any guarantee, surety, income certificate, etc.  for advancing educational loan, if so, the details thereof;
- (d) whether the Government has received complaints against banks for denial of loans to the students and irregularities in loans and if so, the details thereof during the last three years, State/UT and bank-wise and;
- (e) the steps taken by the Government to simplify the process of raising educational loan and to redress the grievances of the students in this regard?

## ANSWER (MINISTER OF STATE IN THE MINISTRY OF FINANCE) (SHRI SANTOSH KUMAR GANGWAR)

- (a)   As  per  the  information  furnished  by  RBI,  the  bank-wise/state-wisenumber  of  education  loan  accounts  and  outstanding  education  loan reported and classified as priority sector advances by public sector banks and private sector banksfor the years ending on 31 st March 2013, 31 st March, 2014 and 31 st  March, 2015 are at Annexure I/Annexure II, respectively. Interest being charged by the banks are uniform for the General, Scheduled  Castes  (SCs),  Scheduled  Tribes  (STs),  Other  Backward  Classes  (OBCs),  Below  Poverty  Line  (BPL)  and  minority  communities students.  Some  of  the  banks  give  concession  in  interest  rate  to  girl  students  and  for  servicing  of  interest  during  the  moratorium  period. Annexure III gives the interest being charged by different banks.

(b) All Scheduled Commercial Banks have adopted and implemented the Indian Banks' Association (IBA) Model Educational Loan Scheme for providing education loan for pursuing higher education in India and abroad.    All the Banks are following guidelines issued by IBA/RBI which are as under:

(i)   Loan  to  individuals  for  educational  purposes including vocational courses upto Rs.10 lakh irrespective of the sanctioned amount will be eligible for priority sector lending. It would, however, be open to banks to consider higher quantum of loan for educational purpose.

(ii)  All banks are mandated not to accept collateral security for educational loans upto Rs.4 lakh.

(iii) Banks have been advised not to reject any educational loan application for reasons that the residence of the borrower does not fall under the bank's service area.

(c) All education loans uptoRs 4 lakh are collateral free as per RBI guidelines. Further, Government of India has launched a Credit Guarantee Fund Scheme for Education Loans (CGFEL) wherein no collateral security/third party guarantee is required for loans uptoRs 7.50 Lakh

(d) Complaints regarding educational loans,  as  and  when  received  by  the  Government,  are  taken  up  with  banks  concerned  for  corrective action. As informed by Public Sector Banks, during 2015-16, 4555 complaints related to education loans were received, out of which 4476 were disposed off.

(e) In order to simplify the process ofraising educational loans, Vidya Lakshmi Portal (VLP) (https://www.vidyalakshmi.co.in .) has been launched by the Government. Students can view, apply and track the education loan applications made to banks anytime, anywhere by accessing the portal.

## Annexure-I to reply of  Lok Sabha UnStarred Question No. 1102  for answer on 22nd  July, 2016

| Bank-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | Bank-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | Bank-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | Bank-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | Bank-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | Bank-wise number of education loan accounts and amount outstanding in Rs 'Crore'   | Bank-wise number of education loan accounts and amount outstanding in Rs 'Crore'   |
|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|                                                                                    | 31.03.2013                                                                         | 31.03.2013                                                                         | 31.03.2014                                                                         | 31.03.2014                                                                         | 31.03.2015                                                                         | 31.03.2015                                                                         |
| Bank                                                                               | No. of Accounts                                                                    | Amount Outstanding                                                                 | No. of Accounts                                                                    | Amount Outstanding                                                                 | No. of Accounts                                                                    | Amount Outstanding                                                                 |
| State Bank of Bikaner & Jaipur                                                     | 21915                                                                              | 560.81                                                                             | 22151                                                                              | 494.15                                                                             | 20930                                                                              | 460.36                                                                             |
| State Bank of Hyderabad                                                            | 50615                                                                              | 1068.19                                                                            | 47662                                                                              | 1040.14                                                                            | 46484                                                                              | 1128.11                                                                            |
| State Bank of India                                                                | 586560                                                                             | 12625.64                                                                           | 579351                                                                             | 13342.85                                                                           | 549002                                                                             | 13214.29                                                                           |
| State Bank of Mysore                                                               | 29740                                                                              | 593.89                                                                             | 28433                                                                              | 614.99                                                                             | 29136                                                                              | 625.61                                                                             |
| State Bank of Patiala                                                              | 14816                                                                              | 252.70                                                                             | 15666                                                                              | 437.21                                                                             | 15857                                                                              | 479.51                                                                             |
| State Bank of Travancore                                                           | 109705                                                                             | 2379.27                                                                            | 104959                                                                             | 2453.48                                                                            | 88485                                                                              | 2169.38                                                                            |
| Allahabad Bank                                                                     | 46740                                                                              | 1241.59                                                                            | 48083                                                                              | 1334.78                                                                            | 47435                                                                              | 1327.29                                                                            |
| Andhra Bank                                                                        | 60712                                                                              | 1343.06                                                                            | 57251                                                                              | 1409.24                                                                            | 52424                                                                              | 1603.38                                                                            |
| Bank of Baroda                                                                     | 87602                                                                              | 1905.27                                                                            | 88353                                                                              | 1995.00                                                                            | 86988                                                                              | 2011.21                                                                            |
| Bank of India                                                                      | 122833                                                                             | 2329.34                                                                            | 134533                                                                             | 2597.42                                                                            | 135413                                                                             | 2871.69                                                                            |
| Bank of Maharashtra                                                                | 27121                                                                              | 544.24                                                                             | 29746                                                                              | 622.71                                                                             | 29278                                                                              | 671.48                                                                             |
| BHARATIYA MAHILA BANK LTD.                                                         | 0                                                                                  | 0.00                                                                               | 0                                                                                  | 0.00                                                                               | 152                                                                                | 2.69                                                                               |
| Canara Bank                                                                        | 217406                                                                             | 4260.45                                                                            | 249915                                                                             | 4689.65                                                                            | 272733                                                                             | 5255.30                                                                            |
| Central Bank of India                                                              | 109762                                                                             | 2524.68                                                                            | 123049                                                                             | 3072.07                                                                            | 121431                                                                             | 2881.59                                                                            |
| Corporation Bank                                                                   | 53806                                                                              | 1212.54                                                                            | 64484                                                                              | 1322.59                                                                            | 63724                                                                              | 1391.74                                                                            |
| Dena Bank                                                                          | 14821                                                                              | 291.56                                                                             | 16512                                                                              | 325.49                                                                             | 17135                                                                              | 364.10                                                                             |
| IDBI Bank Ltd.                                                                     | 6729                                                                               | 172.27                                                                             | 9629                                                                               | 257.67                                                                             | 13111                                                                              | 370.83                                                                             |
| Indian Bank                                                                        | 199390                                                                             | 3259.34                                                                            | 177845                                                                             | 3275.19                                                                            | 170860                                                                             | 3023.80                                                                            |
| Indian Overseas Bank                                                               | 201245                                                                             | 2894.40                                                                            | 218944                                                                             | 3533.91                                                                            | 230555                                                                             | 3843.77                                                                            |
| Oriental Bank of Commerce                                                          | 47968                                                                              | 1171.66                                                                            | 47500                                                                              | 1200.91                                                                            | 46420                                                                              | 1201.32                                                                            |
| Punjab and Sind Bank                                                               | 7003                                                                               | 219.10                                                                             | 7110                                                                               | 231.79                                                                             | 7094                                                                               | 240.40                                                                             |

| Punjab National Bank     |   151843 |   3383.54 |   157634 |   3651.15 |   157626 |   4211.65 |
|--------------------------|----------|-----------|----------|-----------|----------|-----------|
| Syndicate Bank           |   110916 |   2398.06 |   113955 |   2610.84 |   113673 |   2657.93 |
| UCO Bank                 |    55201 |   1194.02 |    58998 |   1319.91 |    60760 |   1373.55 |
| Union Bank of India      |    87389 |   1906.35 |    91385 |   2038.49 |    94812 |   2219.98 |
| United Bank of India     |    22990 |    524    |    22522 |    512.41 |    20939 |    490.48 |
| Vijaya Bank              |    34331 |    670.97 |    39062 |    727.62 |    43347 |    905.59 |
| Axis Bank                |     3564 |     36.01 |     8386 |     36.29 |    10304 |     64.13 |
| Catholic Syrian Bank     |     7495 |    132.39 |     7210 |    104.56 |     7994 |    180.36 |
| City Union Bank          |     8300 |    131.5  |     8615 |    156.85 |     8982 |    176.62 |
| Development Credit Bank  |      208 |      4.51 |      293 |      6.78 |      329 |      8.94 |
| Dhanlaxmi Bank           |     2773 |     44.76 |     3382 |     58.92 |     3568 |     68.17 |
| Federal Bank             |    22153 |    393.71 |    27236 |    557.41 |    29904 |    664.22 |
| HDFC Bank                |     7017 |    153.5  |     5722 |    100.75 |     6367 |     97.52 |
| ICICI Bank               |     2545 |     26.48 |     2870 |     28.87 |     3039 |     32.42 |
| Indusind Bank            |       89 |      1.16 |      125 |      1.92 |      130 |      2.58 |
| ING Vysya Bank           |      768 |     13.58 |      815 |     14.22 |      987 |     20.88 |
| Jammu & Kashmir Bank     |     7698 |    147.01 |     7862 |    163.03 |     8392 |    174.33 |
| Karnataka Bank           |     6182 |    142.42 |     6447 |    152.81 |     6731 |    163.94 |
| Karur Vysya Bank         |     7705 |     96.54 |     8818 |    142.29 |     9252 |    156.85 |
| Kotak Mahindra Bank      |        0 |      0    |      606 |     18.08 |      891 |     25.69 |
| Lakshmi Vilas Bank       |     7349 |     88.55 |     7111 |     88.79 |     5577 |     81.95 |
| Nainital Bank            |      766 |     17.03 |      778 |     17.52 |      852 |     19.33 |
| Ratnakar Bank            |      874 |      1.76 |     2067 |      3.69 |     7267 |     11.56 |
| South Indian Bank        |    15494 |    246.09 |    17712 |    250.02 |    14029 |    229.11 |
| Tamilnad Mercantile Bank |     9906 |    134.75 |    10573 |    149.7  |    10915 |    160.34 |
| Yes Bank                 |        0 |      0    |        0 |      0    |        2 |      0.04 |
| TOTAL                    |  2590045 |  52738.7  |  2681360 |  57164.2  |  2671316 |  59336    |

Annexure-II to reply of  Lok Sabha UnStarred Question No. 1102  for answer on 22nd  July, 2016

State-wise number of education loan accounts and amount outstanding in Rs 'Crore'

|                      | 31.03.2013      | 31.03.2013         | 31.03.2014      | 31.03.2014         | 31.03.2015      | 31.03.2015         |
|----------------------|-----------------|--------------------|-----------------|--------------------|-----------------|--------------------|
| State                | No. of Accounts | Amount Outstanding | No. of Accounts | Amount Outstanding | No. of Accounts | Amount Outstanding |
| Andamans             | 568             | 13.60              | 585             | 15.04              | 590             | 16.41              |
| Andhra Pradesh       | 197032          | 4698.58            | 190340          | 4987.76            | 170678          | 5443.33            |
| Arunachal Pradesh    | 510             | 12.20              | 589             | 13.61              | 685             | 15.15              |
| Assam                | 16394           | 391.20             | 16678           | 423.97             | 16467           | 522.10             |
| Bihar                | 88982           | 2107.09            | 99620           | 2725.34            | 102426          | 2949.60            |
| Chandigarh           | 5181            | 160.44             | 4873            | 160.02             | 4633            | 166.72             |
| Chattisgarh          | 16015           | 308.59             | 16792           | 368.03             | 18010           | 406.23             |
| Dadra & Nagar Haveli | 313             | 5.76               | 226             | 6.10               | 265             | 6.62               |
| Daman & Diu          | 124             | 3.27               | 127             | 3.28               | 137             | 4.32               |
| Delhi                | 34073           | 1018.29            | 32890           | 1028.53            | 31990           | 1411.55            |
| Goa                  | 3492            | 84.62              | 3342            | 90.94              | 3211            | 94.87              |
| Gujarat              | 44055           | 1271.78            | 45937           | 1182.63            | 45911           | 1160.67            |
| Haryana              | 37254           | 839.38             | 37531           | 950.39             | 36401           | 953.83             |
| Himachal Pradesh     | 14171           | 286.85             | 14611           | 330.65             | 14929           | 353.67             |
| Jammu & Kashmir      | 10838           | 223.60             | 10935           | 241.26             | 11306           | 248.36             |
| Jharkhand            | 46018           | 1231.98            | 48849           | 1333.10            | 48423           | 1368.78            |
| Karnataka            | 186623          | 3874.54            | 195169          | 4062.52            | 198709          | 4159.53            |
| Kerala               | 336212          | 7353.91            | 341427          | 7975.57            | 331663          | 7788.53            |
| Lakshadweep          | 20              | 0.37               | 29              | 0.62               | 31              | 0.81               |
| Madhya Pradesh       | 80077           | 1586.77            | 83230           | 1739.40            | 81372           | 1813.45            |

| Maharashtra   |   169491 |   4073.87 |   178587 |   4131.22 |   188673 |   4532.75 |
|---------------|----------|-----------|----------|-----------|----------|-----------|
| Manipur       |     1393 |     39.6  |     1433 |     40.74 |     1338 |     37.35 |
| Meghalaya     |     1687 |     39.8  |     2021 |     51.51 |     2184 |     52.26 |
| Mizoram       |      390 |     10.51 |      706 |     24    |      685 |     20.63 |
| Nagaland      |      399 |     10.72 |      417 |     12.48 |      444 |     12.92 |
| Orissa        |    69886 |   1665.24 |    68200 |   1733.98 |    65016 |   1737.16 |
| Puducherry    |    14636 |    264.42 |    14808 |    292.18 |    14598 |    288.41 |
| Punjab        |    32005 |    812.68 |    32810 |    956.26 |    32438 |   1021.41 |
| Rajasthan     |    58424 |   1318.15 |    59314 |   1353.26 |    57940 |   1355.02 |
| Sikkim        |      409 |     10.83 |      440 |     12.03 |      444 |     12.3  |
| Tamil Nadu    |   886752 |  13343.6  |   940990 |  15077.6  |   960202 |  16313.1  |
| Tripura       |     2280 |     45.89 |     2804 |     61.83 |     3271 |     76.1  |
| Uttarakhand   |    28401 |    665.44 |    26121 |    657.34 |    33811 |    878.14 |
| Uttar Pradesh |   137393 |   3521.06 |   141095 |   3575.11 |   127478 |   3130.67 |
| West Bengal   |    68547 |   1443.98 |    67834 |   1545.87 |    64957 |    983.31 |
| TOTAL         |  2590045 |  52738.7  |  2681360 |  57164.2  |  2671316 |  59336    |

## Annexure-III to reply of Lok Sabha Unstarred Question No. 1102 for answer on 22nd July, 2016

Bank-wise interest rates on education loans

| S. No   | Name of the Bank      | Int. Rate (in %)   | Int. Rate (in %)                   | Int. Rate (in %)   |
|---------|-----------------------|--------------------|------------------------------------|--------------------|
|         |                       | Upto Rs. 4 lakh    | Above Rs. 4 lakh &upto Rs 7.5 lakh | Above Rs. 7.5 lakh |
| 1       | Allahabad Bank        | 11.70              | 11.70                              | 11.70              |
| 2       | Andhra Bank           | 12.40              | 12.40                              | 11.15              |
| 3       | Bank of Baroda        | 12.15              | 12.15                              | 11.40              |
| 4       | Bank of India         | 12.70              | 12.70                              | 12.20              |
| 5       | Bank of Maharashtra   | 12.20              | 11.70                              | 10.95              |
| 6       | Bhartiya Mahila Bank  | 11.50              | 12.00                              | 12.75              |
| 7       | Canara Bank           | 11.65              | 11.65                              | 11.25              |
| 8       | Central Bank of India | 11.70              | 11.70                              | 11.70              |
| 9       | Corporation Bank      | 11.40              | 12.40                              | 11.90              |
| 10      | Dena Bank             | 11.25              | 11.25                              | 11.25              |
| 11      | IDBI Bank             | 10.75              | 11.75                              | 10.75              |
| 12      | Indian Bank           | 11.95              | 11.95                              | 11.95              |
| 13      | Indian Overseas Bank  | 11.70              | 12.20                              | 12.45              |
| 14      | OBC                   | 12.20              | 11.45 -12.70                       | 11.45              |
| 15      | Punjab & Sind Bank    | 12.75              | 13.00                              | 12.25              |
| 16      | Punjab National Bank  | 11.60              | 12.60                              | 12.10              |
| 17      | Syndicate Bank        | 11.20              | 11.45                              | 12.45              |
| 18      | UCO Bank              | 12.20              | 12.20                              | 11.95              |
| 19      | Union Bank of India   | 12.65              | 12.40                              | 11.65              |
| 20      | United Bank of India  | 13.00              | 13.25                              | 11.75              |
| 21      | Vijaya Bank           | 11.15              | 11.65                              | 11.15              |
| 22      | State Bank of India   | 11.30              | 11.30                              | 11.00              |

|   23 | State Bank of B&J        |   12.70 |   12.70 |   12.70 |
|------|--------------------------|---------|---------|---------|
|   24 | State Bank of Hyd.       |   12.25 |   12.75 |   12.75 |
|   25 | State Bank of Mysore     |   12.25 |   12.25 |   11.25 |
|   26 | State Bank of Patiala    |   12.4  |   12.4  |   11.4  |
|   27 | State Bank of Travancore |   13.7  |   12.7  |   11.7  |

NB: Some of the banks give concession in interest rate to girl students and for servicing of interest during the moratorium periods.