Lok Sabha Question No. 2347 (UNSTARRED), answered on 2016-03-11
Subject: Educational Loan
Ministry: FINANCE
Asked by: VIRENDER KASHYAP, RAM TAHAL CHOUDHARY, LAXMI NARAYAN YADAV

- (a)  whether the Government has introduced a scheme to provide educational loan at lower rate  of  interest  to  the  students  of  economically  weaker  sections  of  the  society,  if  so,  the details thereof;
- (b)  the rate of interest at which the educational loan is being provided at present;
- (c) whether the Non Performing Assets on educational loan are increasing, if so, the details thereof; and
- (d)  the steps taken/being taken by the Government to easy availability of educational loans to students in this regard?

## ANSWER

## To be answered by (MINISTER OF STATE IN THE MINISTRY OF FINANCE) (SHRI  JAYANT SINHA  )

- (a) Government of India has launched a Credit Guarantee Fund Scheme for Education Loans  (CGFSEL)  on  16.09.2015.  The  Interest  Rate  charged  for  loans  covered  under CGFSEL is maximum upto 2% over the Base Rate.

In addition for the students belonging to economically weaker sections an interest subsidy scheme on educational loans is in place. Under the scheme during the period of moratorium full interest subsidy is available for educational loans disbursed on or after 1 st April, 2009.

- (b) Rate of interest charged by PSBs as on 31.12.2015 on educational loans is Annexed.
- (c) Position  of  Non  Performing  Assets  (NPA)  of  Banks  for  the  last  three  years  and current year upto 31.12.2015 is given as under:

Rs in Crore

| As on       | Education Loan Outstanding   | NPA Position   | %age of NPA   |
|-------------|------------------------------|----------------|---------------|
| 31.03.13    | 48382.00                     | 2615.00        | 5.40          |
| 31.03.14    | 59834.00                     | 3439.00        | 5.75          |
| 31.03.15    | 63651.00                     | 3443.00        | 5.41          |
| 31.12.15    | 66858.00                     | 3934.00        | 5.88          |
| Source: RBI |                              |                |               |

(d) The Model Education Loan Scheme is modified from time to time by Indian Banks' Association  (IBA)  keeping  in  view  the  needs  of  the  students.  The  last  such  revision  was made in August, 2015.

In  order  to  facilitate  easy  processing  and  disbursal  of  loans,  Government  has  launched  a web-based  portal  viz.  Vidya  Lakshmi  Portal.  Students  can  view,  apply  and  track  the education loan applications online.

|    | Annexure to reply of Lok Sabha Unstarred Question No. 2347 for 11.03.2016   | Annexure to reply of Lok Sabha Unstarred Question No. 2347 for 11.03.2016   | Annexure to reply of Lok Sabha Unstarred Question No. 2347 for 11.03.2016   | Annexure to reply of Lok Sabha Unstarred Question No. 2347 for 11.03.2016   |
|----|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|    | Interest Rates on Education Loans as on 31st December, 2015                 | Interest Rates on Education Loans as on 31st December, 2015                 | Interest Rates on Education Loans as on 31st December, 2015                 | Interest Rates on Education Loans as on 31st December, 2015                 |
|    | Name of the Bank                                                            | Interest Rate ( %)                                                          | Interest Rate ( %)                                                          | Interest Rate ( %)                                                          |
|    |                                                                             | Upto ₹ 4 lac                                                                | Above ₹ 4 lac &upto ₹ 7.5 lac                                               | Above ₹ 7.5 lac                                                             |
|    |                                                                             | %                                                                           | %                                                                           | %                                                                           |
| 1  | Allahabad Bank                                                              | 11.70                                                                       | 11.70                                                                       | 11.70                                                                       |
| 2  | Andhra Bank                                                                 | 12.50                                                                       | 12.50                                                                       | 11.25                                                                       |
| 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                                                        | 10.95 - 11.95                                                               | 10.25 - 12.45                                                               | 10.25 - 12.20                                                               |
| 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 Ç                                                                     | 10.75 Ç                                                                     | 10.75 Ç                                                                     |
|    |                                                                             | 11.75 ß                                                                     | 11.75 ß                                                                     | 11.75 ß                                                                     |
|    |                                                                             | 10.75 ¥                                                                     | 10.75 ¥                                                                     | 10.75 ¥                                                                     |
| 12 | Indian Bank                                                                 | 11.95                                                                       | 11.95                                                                       | 11.95                                                                       |
| 13 | Indian Overseas Bank                                                        | 11.70                                                                       | 12.95                                                                       | 11.70                                                                       |
| 14 | Oriental Bank of Commerce                                                   | 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 §                                                                     |
|    |                                                                             | 12.15 ¥                                                                     | 11.90 ¥ 13.25 ⱷ                                                             | 11.15 ¥ 11.75 ⱷ &                                                           |
| 20 | United Bank of India                                                        | 13.00 ⱷ & £                                                                 | & £                                                                         | £                                                                           |
| 21 | Vijaya Bank State Bank of                                                   | 11.15                                                                       | 11.65                                                                       | 11.15                                                                       |
| 22 | India                                                                       | 11.30                                                                       | 11.30                                                                       | 11.00                                                                       |
| 23 | State Bank of Bikaner & Jaipur                                              | 12.70                                                                       | 12.70                                                                       | 12.70                                                                       |
| 24 | State Bank of Hyderabad.                                                    | 12.25                                                                       | 12.75                                                                       | 12.75                                                                       |
| 25 | State Bank of Mysore                                                        | 12.40                                                                       | 12.40                                                                       | 11.40                                                                       |
| 26 | State Bank of Patiala                                                       | 12.40                                                                       | 12.40                                                                       | 11.40                                                                       |
| 27 | State Bank of Travancore                                                    | 13.80                                                                       | 12.80                                                                       | 11.80                                                                       |
|    | Note:                                                                       | Note:                                                                       | Note:                                                                       | Note:                                                                       |
|    |                                                                             | ¥ Interest rate for female students                                         |                                                                             |                                                                             |
|    | § Interest rate for male students £ 0.5% concession for girl students       | ⱷ Interest rate floating                                                    |                                                                             |                                                                             |
|    | Ç non-vocational courses                                                    | ß non-vocational courses                                                    |                                                                             |                                                                             |
|    | ¥ Vocation courses                                                          |                                                                             |                                                                             |                                                                             |