Educational Loan from Public Sector Bank: A Review

Kaushal Naresh Amar; V K Agrawal

Abstract

Many Indian students are seeking financial assistance in the form of bank loans for their studies, as they pursue higher education. According to the report, smart and qualified students can get low-interest educational loans to pursue a range of courses at higher education institutions in India and beyond. Even though there are now more education loan accounts than there were a year ago, the number of accounts and their sums have not grown at the same rate annually. This study is conducted with three objectives: first, to explore the terms and conditions of education loans provided by different public banks. The growth in educational loans in public sector banks is the second goal, and examining the various interest rates that various banks charge is the third. The study revealed that more than 90% of education loans are provided by public sector banks, and SBI is the main player with the lowest interest rate and attractive terms and conditions. For students, understanding the terms and conditions of school loans is essential. This includes repayment plans, grace periods, and eligibility criteria. Analyzing the growth patterns in educational loans offered by public sector banks helps identify trends and potential areas for improvement or expansion. Different banks may impose varying interest rates, and studying this aspect is vital for students to make informed decisions. Lower interest rates can significantly impact the financial burden on students Despite a growth in the number of education loan accounts, the year-on-year growth rate has been declining. This pattern begs the question of what is causing the slowness.