Impact of Private Equity in Education Sector

RESEARCH PROJECT REPORT
On
“IMPACT OF PRIVATE EQUITY IN EDUCATION

SECTOR”
Towards partial fulfillment of
Master of Business Administration (MBA)
(BBD University, Lucknow)
Guided By: Submitted by:
Ms. Anushree Srivastava Swapnil Srivastava
Roll No. 1210672280
Session 2022-2023
School of Management
Babu Banarasi Das University
Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
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Certificate
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PLAGIARISM CERTIFICATE
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DECLARATION
This is to declare that I, SWAPNIL SRIVASTAVA student of Master of Business Administration (MBA), have
personally worked on the project entitled “IMPACT OF PRIVATE EQUITY IN EDUCATION SECTOR”. The data
mentioned in this report were obtained during genuine work done and collected by me. The data obtained
from other sources have been duly acknowledged. The result embodied in this project has not been
submitted to any other University or Institute for the award of any degree.
SWAPNIL SRIVASTAVA
DATE: B.B.D.U, Lucknow
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ACKNOWLEDGEMENT
Perseverance, inspiration and motivation have always played a key role in the success of any venture.
A successful and satisfactory completion of any project is the outcome of the invaluable aggregate
contribution of different persons fully in radical direction, explicitly or implicitly.
Whereas vast, varied and valuable reading efforts leads to substantial acquisition of knowledge via
books and allied information sources. True expertise excludes from collateral practical works and
experiences.
I am grateful to Prof. (Dr.) Sushil Pande, the Dean of Babu Banarasi Das University, Lucknow
for sparing his valuable time for me on different occasions.
Words has never seemed as inadequate as now, when I am endeavouring to express my heartfelt
gratitude at the culmination of the project, to all those made it possible. Even the best effort is waste
without proper guidance and advice. I highly solicit to my guide Ms. Anushree Srivastava for
giving time-to-time suggestion and their valuable guidance, co-operation, inspiration and keen
supervision to our project.
Last but not the least; I am grateful to God, my Parents, Elders and Friends for encouraging us to
take up this challenging task.
SWAPNIL SRIVASTAVA
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TABLE OF CONTENT
Title page................................................................................................................................2
Acknowledgment.....................................................................................................................3
Executive summary................................................................................................................5
1. Introduction..................................................................................................................6
1.1 About educational loan.........................................................................................6
1.2 Objective of the scheme.......................................................................................7
1.3 Application of the scheme.....................................................................................7
1.4 Eligibility criteria....................................................................................................7
1.5 Quantum of finance...............................................................................................8
1.6 Margin..................................................................................................................8
1.7 Security..................................................................................................................8
1.8 Rate of interest.....................................................................................................8
1.9 Appraisal................................................................................................................9
1.10 Repayment.......................................................................................................9
1.11 Insurance.........................................................................................................9
1.12 Follow up........................................................................................................10
1.13 Processing charges........................................................................................10
1.14 Capability certificate.......................................................................................10
1.15 Other condition..............................................................................................11
2 Detail..............................................................................................................................12
2.1 Education loan.....................................................................................................12
2.2 Allabhad bank education loan.............................................................................15
2.3 HDFC Education Loan.........................................................................................18
2.4 Axis Bank Education Loan..................................................................................20
2.5 SBI Education Loan............................................................................................22
2.6 Bank of Baroda Education Loan..........................................................................23
2.7 UCO Bank Educational loan...............................................................................28
2.8 ICICI Education Loan..........................................................................................31
2.9 IDBI BANK Education loan..................................................................................33
2.10 Syndicate Bank Education loan......................................................................36
3 Research methodology...................................................................................................39
4 Analysis........................................................................................................................42
5 Findings & interpretation................................................................................................48
6 Limitations of the study.................................................................................................88
7 Suggestion.....................................................................................................................90
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8 Conclusion.....................................................................................................................93
9 Annexure........................................................................................................................96
10 References...............................................................................................................
EXECUTIVE SUMMARY
In the growing global competition, the productivity of any business concern depends upon
the behavioural aspect of consumers. This topic deals with the customer’s perception
towards Educational loan and their experiences.
This project report contains 5 different chapters. The report begins with the introduction to
what is education loan according to Indian Bank’s Association.
The second chapter is the introduction to the Advance Product which gives a brief idea
regarding different Education loan product provide by different banks. It also contains the
objectives and limitations of the project.
The third chapter, methodology adopted in preparing this report is mentioned. Covers the
sample procedure, types of data used and the data collection method.
The fourth chapter comprehensive coverage of forecasting concepts and techniques which
shows the analysis of data through tabulation, computation and graphical representation of
data collected from survey.
The fifth chapter deals with the findings, suggestion & conclusion part which is very much
important after analysis is made.
As we know that only analysis and conclusion is not the end of a research, so in the sixth
chapter the recommendation part is covered which are made after a depth study of the
analysis part of thesis.
In each of the five chapters as described above, every chapter has been scheduled in a
manner so as to enable the reader to appreciate the contents easily. The report is
supported by figures and data wherever necessary with a view to assist the reader in
developing a clear cut understanding of the topic.
I hope this report will be extremely useful for those it is meant. Constructive and healthy
suggestions for improvements of the report will be great fully appreciated.
Nidhi Jain
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INTRODUCTION:
1. ABOUT EDUCATION LOAN:

Education is central to the human resources development and empowerment in any
country. National and State level policies are framed to ensure that this basic need of the
population is met through appropriate public and private sector initiatives. While
government endeavour to provide primary education to all on a universal basis, public
funding of higher education is not considered feasible. Cost of education has been going up
in recent times and since the student has to bear most of the cost, there is a clear case for
institutional funding in this area. This model education loan scheme is an attempt to bring
out a viable and sustainable bank loan scheme to meet the aspirations of our society.
Knowledge and information would be the driving force for economic growth in the coming
years. The current rate of economic growth of the country demands technically and
professionally trained man power in large numbers. In this backdrop, loans for education
are seen as investments for economic development and prosperity. The model Education
Loan Scheme was developed by the Indian Banks’ Association to help meritorious students
pursue higher education in technical and professional courses. As the focus is on
development of human capital, repayment of the loan is expected to come from future
earnings of the student after completion of education. Hence the assessment of the loan will
be based on employability and earning potential of the student upon completion of the
course and not the parental income/family wealth.
Based on recommendations made by a Study Group, IBA had prepared a Model

Educational Loan Scheme in the year 2001 which was advised to banks for implementation
by Reserve Bank of India videos circular No.RPCD.PLNFS.BC.NO.83/06.12.05/2000-01
dated April 28, 2001 along with certain modifications suggested by the Government of India.
In line with the announcement made by the Humble Finance Minister in his Budget Speech
for the year 2004-05, IBA had communicated certain changes in the security norms
applicable to education loans with limits above `.4 laths and up to `.7.5 laths. The scheme
was further modified in the year 2007-08 based on experience gained in the operation of
the scheme over the years.
With increased public awareness about the benefits of the education loan scheme, bank
branches are receiving more and more applications for loans every year. This has also
resulted in cases of customer grievances due to misinterpretation of the provisions of the
scheme. This review exercise has been taken up to make the scheme more transparent
and minimise scope for multiple interpretations leading to disputes.
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2. OBJECTIVES OF THE SCHEME
The Educational Loan Scheme outlined below aims at providing financial support from the
banking system to meritorious students for pursuing higher education in India and abroad.
The main emphasis is that a meritorious student, though poor, is provided with an
opportunity to pursue education with the financial support from the banking system with
affordable terms and conditions.
3. APPLICABILITY OF THE SCHEME:

The scheme detailed below could be adopted by all member banks of the Association or
other banks and financial institutions as may be advised by the Reserve Bank of India. The
scheme provides broad guidelines to the banks for operational sing the educational loan
scheme and the implementing bank will have the discretion to make changes as deemed fit.
The scheme details are as under:
4. ELIGIBILITY CRITERIA:
4.1 Student eligibility:
 The student should be an Indian National
 Should have secured admission to a higher education course in recognized
institutions in India or Abroad through Entrance Test/ Merit Based Selection process
after completion of HSC(10 plus 2 or equivalent). However, entrance test or selection
purely based on marks obtained in qualifying examination may not be the criterion for
admission to some of the post graduate courses or research programmes. In such
cases, banks will have to adopt appropriate criteria based on employability and
reputation of the institution concerned.
4.2 Courses eligible

a. Studies in India: (Indicative list)
 Approved courses leading to graduate/ post graduate degree and P G diplomas

conducted by recognized colleges/ universities recognized by UGC/ Govt. / AICTE/
AIBMS/ ICMR etc.
 Courses like ICWA, CA, CFA etc.
 Courses conducted by IIMs, IITs, IISc, XLRI. NIFT, NID etc.
 Regular Degree/Diploma courses like Aeronautical, pilot training shipping etc.,
approved by Director General of Civil Aviation/Shipping, if the course is pursued in
India.
 Approved courses offered in India by reputed foreign universities.
(b) Studies abroad:-
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 Graduation: For job oriented professional/ technical courses offered by reputed
universities.
 Post graduation: MCA, MBA, MS, etc.
 Courses conducted by CIMA- London, CPA in USA etc.
 Degree/diploma courses like aeronautical, pilot training, shipping etc provided these
are recognized by competent regulatory bodies in India/abroad for the purpose of
employment in India/abroad.
4.3 Expenses considered for loan:
i. Fee payable to college/ school/ hostel*
ii. Examination/ Library/ Laboratory fee
iii. Travel expenses/ passage money for studies abroad
iv. Insurance premium for student borrower, if applicable
v. Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts. **
vi. Purchase of books/ equipments/ instruments/ uniforms***
vii. Purchase of computer at reasonable cost, if required for completion of the course***
viii. Any other expense required to complete the course - like study tours, project work,
thesis, etc***
5. QUANTUM OF FINANCE:
Need based finance to meet the expenses worked out as per para 4.3 above will be
considered taking in to account margins as per para 6 subject to the following ceilings:
- Studies in India - Maximum upto `.10 laths.
- Studies Abroad - Maximum upto `.20 laths.
6. MARGIN:
Upto `.4 lacs Nil
Above `. 4 lacs Studies in India 5%
Studies Abroad 15%
- Scholarship/ assistantship to be included in margin.
- Margin may be brought-in on year-to-year basis as and when disbursements are made on
a pro-rata basis.
7. SECURITY:
Upto 4 laths Parents to be joint borrower(s)
No security
Above 4 laths and upto 7.5 laths. Besides the parent(s) executing the documents as
joint borrower(s) , collateral security in the form of suitable third party guarantee will be
taken. The bank may, at its discretion, in exceptional cases, waive third party guarantee if
satisfied with the net-worth / means of parent/s who would be executing the document as
joint borrower(s).
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Above `.7.5 laths Parent(s) to be joint borrower(s) Tangible collateral security of suitable
value acceptable to bank, along with the assignment of future income of the student for
payment of instalments.
8. RATE OF INTEREST :
Interest to be charged at rates linked to the Base rate as decided by individual
Banks
 Simple interest to be charged during the study period and up to commencement of
repayment.
9. APPRAISAL / SANCTION/ DISBURSEMENT:

 Applications will be received either directly at bank branches or through on-line
mode. Upon receipt of application, standard acknowledgement giving a reference
number will be issued. The acknowledgement will contain contact details of the bank
official who, could be contacted in case of delay in disposal of application.
 Normally, sanction/rejection will be communicated within 15 days of receipt duly
completed application with supporting documents.
 In the normal course, while appraising the loan, the future income prospect of the
student only will be looked into.
 Rejection of loan application, if any, shall be done with the concurrence of the
controlling authority of the branch concerned and conveyed to the student stating
reason for rejection.
 Normally, loan application will be accepted by the branch nearest to the residence of
parents. However, the sanction of loan will be as per delegation of powers by the
bank.
 The loan to be disbursed in stages as per the requirement/ demand directly to the
Institutions/ Vendors of equipments/ instruments to the extent possible.
10. REPAYMENT:
Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job,

whichever is earlier.
If the student is not able to complete the course within the scheduled time, extension of time
for completion of course may be permitted for a maximum period of 2 years. If the student is
not able to complete the course for reasons beyond his control, sanctioning authority may at
his discretion consider such extensions as may be deemed necessary to complete the
course. In case the student discontinues the course midway, appropriate repayment
schedule will be worked out by the bank in consultation with the student/parent.
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 The accrued interest during the repayment holiday period to be added to the
principal and repayment in Equated Monthly Instalments (EMI) fixed.
 1% interest concession may be provided by the bank, if interest is serviced during
the study period and subsequent moratorium period prior to commencement of
repayment. Repayment of the loan will be in equated monthly instalments for periods
as under:
For loans upto - 7.5 laths - upto 10 years

For loans above - 7.5 laths - upto 15 years
11. INSURANCE
Banks may, with the consent of the student, arrange for life insurance policy on the students
availing Education Loan. Individual Banks may work out the modalities with insurance
companies.
12. FOLLOW UP/MONITORING:

Banks to contact college/ university authorities to obtain progress report on the student at
regular intervals in respect of those who have availed loans. In case of studies abroad,
bank may obtain the SSN/Unique Identification Number (UIN)/Identity Card and note the
same in the bank’s records. The UID number issued by UIDIA may also be captured in
bank’s system as and when available.
13. PROCESSING CHARGES :

No processing / upfront charges may be levied on loans sanctioned under the scheme.
14. CAPABILITY CERTIFICATE:

Banks can also issue the capability certificate for students going abroad for higher studies.
For this purpose financial and other supporting documents may be obtained from applicant,
if required.
15. OTHER CONDITIONS:
15.1 Sanction of loan to more than one child from the same family
Existence of an earlier education loan to the brother(s) and/or sister(s) will not affect
the eligibility of another meritorious student from the same family obtaining education
loan as per this scheme from the bank.
15.2 Minimum Age

There is no specific restriction with regard to the age of the student to be eligible for
education loan. However, if the student was a minor while the parent executed
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documents for the loan, the bank will obtain a letter of ratification from him/her upon
attaining majority.
15.3 Top up loans

Banks may consider top up loans to students pursuing further studies within the
overall eligibility limit, if such further studies are commenced during the moratorium
period of the first loan. The repayment of the loan will commence after the
completion of the second course and further moratorium period, as provided under
the scheme.
15.4 Joint Borrower

The joint borrower should normally be parent(s)/guardian of the student borrower. In
case of a married person, joint borrower can be spouse or the parent(s)/parents-in-
law.
No Due Certificate
No due certificate will not be insisted upon as a pre-condition for considering education
loan. However, banks may obtain a declaration/ an affidavit confirming that no loans are
availed from other banks.
Disposal of loan application

Loan applications have to be disposed of in the normal course within a period of 15 days to
1 month, but not exceeding the time norms stipulated for disposing of loan applications
under priority sector lending.
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DETAIL
Education Loan | Student Loan

Education Loan: Education loans/Student loans are easily available from many banks and
financial institution facilitating many students to pay for their higher education.
Special Education Grant
Special education generally refers to students who are differently-abled. However, it can
also refer to students who require special education needs in other ways. For example,
students with emotional difficulties that make it difficult to study may qualify for certain types
of special education grants and loans. Students who are not able to attend regular classes
for a specific reason may also qualify for special education loans and special consideration
when pursuing a college degree. If, for example, you are hospitalized, you may qualify for
special aid. Special education grants exist from a number of sources. These types of aid do
not have to be paid back but allow students to pay for their education.
Grants for special education should be sought out earnestly by those were qualified for
them. When it comes to grants, special-education students do qualify for both regular grants
and special education grants. Students will want to apply for both types of grants to ensure
that they get the funding they need.
Special Education Financial Aid options:
If you have a condition that prevents you from attending classes or taking part in degree
programs regularly — for example, you are differently-abled or seriously ill and cannot leave
the hospital room — then special grants and loans exist to help you pay for education.
Students with special needs often find that they require extra money for school. They may
require Braille translated textbooks, for example, or they may require special computer
equipment that allows them to study. Grants designed especially for special-education hope
to address these additional costs for students while at the same time encouraging students
with different abilities to apply for degree program.
Criteria for Special-Education Scholarship, Grant, or Loan:
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If you have trouble with school because of the physical, emotional, or mental challenge,
then chances are pretty good that there are financial aid options available for you. Some
types of special-education scholarships or grants are designed for people with specific
types of challenges. Others are simply earmarked for anyone who faces special challenges
when pursuing an education.
Depending on the grants or scholarships to apply for, you may find that you require
additional application materials. Often, you will need to provide a doctor’s note or some
other confirmation of your condition. You’ll often also be asked to describe how your
condition affects your ability to function.
Types of Special-Education Financial Aid Options:
If you have special needs when it comes to education, there are many places that you can
turn to for financial aid:
– The American Council on Education’s HEATH Resource Centre Offers Financial

Aid and Advice and Resources for Students
– Special Government Grants and Scholarships Exist for Students with Special
Needs
– Private Scholarships Created Specifically for Students with Special Education
Needs – Your school’s financial aid office will have a list of such private scholarship
and grant opportunities. Most schools have their own scholarships and grants
designed for differently-abled students. If your school has a special education office
or center, that center will be able to give you additional help and resources.
Special Education Loans
If you require additional money because of special needs, special-education borrowing can
help you make up the difference between your needs and your financial aid package.
Federal student loan programs as well as private lenders will be able to lend you money
that you can use toward your schooling. Once you finish your schooling or no longer
enrolled, you will need to pay back your debt — with interest.
Distance Education Loans
Distance education is more popular than ever today. It allows students to study remotely,
without having to attend classes at a university. This allows students from all walks of life to
pursue a college education without disrupting their family or work life. While there is no
doubt that distance education makes education more accessible to many, students often
find that they require distance education loans in order to pay for their remote education.
Distance learning education loans are more available than ever before. Students can now
turn to a number of sources in order to get the money they need to succeed in school.
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Alternative Education Loans
Alternative education loans are also known as private education loans. These loans are
simply amounts of money lent by private lenders. They may be offered by banks, private
companies, or other financial institutions or persons. The loans are attractive to distance
education students because they are so flexible. You do not need to be a full-time student,
in many cases, to qualify for some form of loan. You often do not need to be a United
States citizen in order to apply for such loan. You can also apply this type of education loan
to any school you attend.
Financial Institution Loans – Flexible Loans
You should consider private loans from financial institutions. Student loans from financial
institutions are very flexible, have competitive rates, and can be used for a wide variety of
school related expenses.
Bank Loans
If you’re looking for online distance education loans, you may wish to seek out traditional
loans as well. Traditional lines of credit, credit cards, personal loans, and other types of
loans can provide a good alternative to distance education loans. These loans can help you
pay off your education, and do not require an extensive application process. As long as
your credit is decent, you can get approved with competitive interest rates. Of course, you
will need to start repaying your loan right away. However, since many people pursuing
distance education work full time as well, this is rarely a problem. An advantage of this type
of loan is that it does not leave the student with a large debt after graduation. Plus, since
many people pursuing distance education do so one course at a time, it is possible to get
out one or two small loans in order to pay for education. In many cases, students find that
this is enough.
Employer Education Loans
Some employers offer their employees financial assistance in order to go to school. Often,
this is because extra education can make an employee more productive and more valuable
to the workplace. Some employers are willing to offer private loans, or offer loans based on
employers retirement contributions, in order to allow the employee to attend distance
education courses.
NOW we have all the options in front of you to make the educational journey backed by
proper financial assistance if you need any.
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Allahabad Bank Education Loan
Allahabad Bank Education Loans Schemes – Compare Eligibility, Interest Rates, Offers,
EMI and Procedure of Education loan from Allahabad Education Loan.
Eligibility:
Indian National who has secured admission to professional/ technical courses in recognized
institutions in India or Abroad through Entrance Test/ Merit Based Selection Process after
completion of H.S.C. (10 plus 2 OR equivalent).
Courses Eligible:
Courses eligible for study in India:
Approved courses leading to Graduate/ Posy-Graduate degree and P.G. Diplomas

conducted by recognized Colleges/ Universities recognized by UGC/ Govt./ AICTE/ AIBMS/
ICMR etc.
Courses like ICWA, CA, CFA etc.
Courses conducted by IIMs, IITs/ IISc, XLRI, NIFT, NID etc.
Regular Degree/ Diploma Courses like Aeronautical, Pilot Training, Shipping etc. approved
by Director General of Civil Aviation/ Shipping, if the course is pursued in India.
Approved courses offered in India by reputed Foreign Universities.
Courses eligible for Study abroad:
Graduation: For Job oriented professional/technical courses offered by reputed

Universities.
Post Graduation: MCA, MBA, MS etc.
Courses conducted by CIMA London, CPA in USA etc.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc., the Institute
duly recognized by the Competent University/ State Body/ Local Aviation/ Shipping
Authority.
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Education Loan Interest Rates
(i) For IIT/ IIM/ ISB (loan upto 10.00 Lacs) 10.75%+2.25% = 13.00%
(ii) For Others
(a) Loan upto 4.00 Lacs 10.75%+3.00% =13.75%
(b) Loan above Rs.4.00 Lacs 10.75%+3.00% =13.75%
@ For girl students, rebate @1% will be allowed under each slab.
Rebate of 1.00% on the interest charged in the moratorium period will be provided if the
interest is serviced during the study period when repayment holiday is specified for interest /
repayment under the scheme.
Quantum of Loan:
Need based finance subject to repaying capacity of the parents / students with following
ceilings:
Studies in India: Maximum Rs. 10.00 lac
Studies abroad: Maximum Rs. 20.00 lac.
Expenses Considered for Loan
Fee payable to College / School /Hostel
Examination/Library/Laboratory Fee
Purchase of Books / Equipments/ Instruments/ Uniforms.
Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/Receipts of the

Institution, subject to the conditions that amount does not exceed 10% of the total tuition
fees for the entire course.
Travel Expenses/Passage Money for studies abroad.
Purchase of Computers essential for completion of the course at reasonable cost.
Insurance premium for student borrower.
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Any other expenses required to complete the course, such as- Study Tours, Project Work,
and Thesis etc.
Reimbursement of the fee paid at the time of counseling if applied within 60 days from the
date of such payment.
Repayment:
Repayment Holiday / Moratorium is ―Course Period + 1 year‖ or ―6 months after getting

job‖, whichever is earlier.
Loans up to Rs.7.50 Lac to be repaid within a maximum period of 10 years & those above
Rs.7.50 Lac within a maximum period of 15 years after commencement of repayment
period.
Available Products of Allahabad Bank :-
Allahabad Bank Home Loan
Allahabad Bank Personal Loan
<Allahabad Bank Education Loan
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HDFC Education Loan
HDFC Education Loan: Compare and Choose Best Education Loans with lowest Current
Interest Rates, Documents, Eligibility and Apply Online. With HDFC bank student education
loans, pursue your dream higher studies without worrying for financial assistance. We
provide student education loans for all Graduate, Post-Graduate, Engineering, Medical,
MBA , Vocational Courses (Multi-Media, ERP) offered by recognized institutions in India. No
more running from pillar to post for availing student loans! Our friendly sales managers will
guide you in every step to make your dreams into reality.
Features & Benefits –
• Student Loans Upto Rs. 15 Lakhs for education In India

• Unsecured Lending Upto INR 7.5 Lakhs
• No Collateral Or Third Party Guarantee**
• Wider Range Of Collateral For Loans Above INR 7.5 Lakhs
• Residential Property
• HDFC Bank Fixed Deposit
• LIC/NSC/KVP
• Loan available upto tenure of 7 years including moratorium period
• Repayment to start 1 year after course completion / 6 months after obtaining
employment (whichever is earlier)
• Loans available for short duration/ job oriented courses also
• Avail the tax rebate, offered under section 80-E of the Income Tax Act 1961* for
the entire interest amount paid towards your education loan.
• Click here to view the income tax circular.
• E-mail loansupport@hdfcbank.com to receive interest certificate for FY 09-10.
• Loans available for other course related expenses also!
Special privileges Eligibility

Service At Your Door Step You need to be a Resident Indian
Loans disbursed directly to the educational You should be aged between 16 – 35 yrs.
institution as Per the Fee Schdule.
Insurance Protection from HDFC ERGO Collateral is required for all loans greater tha n
Rs. 7.5 Lakhs.
Gateway To Other Banking Products AndAll Loans require a co-applicant. For c -
o
Services. applicant eligibility
Savings Account For complete documentation
Click to Know – Fees and Charges
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Insurance Protection from HDFC ERGO General Insurance Company Ltd
HDFC ERGO General Insurance Company Limited is a 74:26 joint venture between HDFC
Limited, India’s premier Housing Finance Institution & ERGO International AG, the primary
insurance entity of Munich Re Group.
HDFC ERGO focuses on providing the ―Right Insurance Solution‖ for all. They offer
customers complete range of general insurance products ranging from Motor, Health,
Travel, Home and Personal Accident in the retail space and customized products like
Property, Marine and Liability Insurance in the corporate space.
The organization has been expanding its presence across the country and is today present
across 46 cities with 52 branch offices with an employee base of over 650 professionals.
The company has a right balance of distribution channel comprising of Dealerships,
Brokers, Retail and Corporate Agents, Banc assurance and Direct Sales Team.
HDFC Education Loan Fees and Charges: Compare Fees and Charges of HDFC
Education loan online and Apply Online HDFC Education Loan.
Description of Charges Education Loan
Loan Processing Charges Upto a maximum 2% of the loan amount
Prepayment (upto 6 months of repayment ) No pre-payment permitted
Pre-payment charges (after 6 months of Upto 4% of the Principal Outstanding
repayment)
No Due Certificate / No Objection Certificate Nil
(NOC)
Solvency Certificate Not applicable
Charges for late payment of EMI @ 24 % p.a. on amount outstanding from
date of default
Credit assessment charges Not applicable
Non standard repayment charges Not applicable
Cheque swapping charges Upto Rs. 500/- per event
Loan Re-Booking / Re-Schedulement Upto Rs. 1000/-
Charges
Bounce Cheque Charges Upto Rs. 450/- per Bouncing
Legal / incidental charges At actual
Stamp Duty & other statutory charges As per applicable laws of the state
 For studies in India, maximum Rs. 10 laces
Studies abroad, maximum Rs. 20 laces
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Axis Bank Education Loan
Axis Bank Education Loan – Axis Bank’s Study Power aims to provide financial
support to deserving students for pursuing higher professional or technical education in
India and abroad. The loan would be provided to students who have obtained admission to
career-oriented courses e.g., medicine, engineering, management etc., either at the
graduate or post-graduate level. Apply online for Education Loan
Axis Bank Offers Loan upto Rs.10 laces for studies in India and Loan upto Rs. 20
lacs for studies abroad.
Rates of Loan Prepaymen No Due Solvency Charges Charges Charges
Interest Processin t Charges Certificat Certificat for Late for for
g Charges e e Payment changin changin
of EMI g from g from
fixed to floating
floating to fixed
rates of rates of
interest interest
13.75% – Nil Nil NA NA Rs 500 + NA NA
15.75% taxes per
*Repayable in cheque
maximum 7 bounce
years from the and a
commencemen penal
t of instalment. interest
@24% per
annum i.e.
@ 2% per
month on
the
overdue
instalment/
s
Quantum of Loan:
The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and Rs
20.0 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books,
etc. The minimum amount of loan would be Rs 50,000.
Margin:
No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for studies within India
and 15% for higher studies overseas.
22 | P a g
Role of the Guardian:
The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her
role would be, necessarily, like the primary debtor.
Security:
Third party guarantee and/or collateral security may be asked for in appropriate cases.
Additional Security:
Assignment of LIC policy in favour of the Bank for the sum assured being at least 100% of the loan
amount. The policy is kept alive during the currency of the loan. To ensure this, the annual premium
may be included in the computation of the loan requirement, along with the tuition fees and other
recurring charges. Further, the future income of the student needs to be assigned in favour of the
Bank for meeting the instalment obligations.
Disbursement:
The loan will be disbursed in full or in suitable instalments taking into account the requirement of
funds and/or fee schedule as assessed by the Bank directly to the educational institution or vendor
of books or equipment or instruments.
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SBI Education Loan
Loan Amount Rate of Interest

Loans upto Rs. 4.00 Lacs 11.25% p.a.
Loans above Rs. 4.00 Lacs and upto Rs. 7.50 Lacs 12.75% p.a.
Loans above Rs. 7.50 Lacs 11.75% p.a.
An Interest Rate concession of 0.50% to Girl Student availing Student Loans
Documents required for SBI Education Loan
 Completed Education Loan Application Form.

 Mark sheets of last qualifying examination
 Proof of admission scholarship, studentship etc
 Schedule of expenses for the specified course
 2 passport size photographs
 Borrower’s Bank account statement for the last six months
 Income tax assessment order, of last 2 years
 Brief statement of assets and liabilities, of the Co-borrower
 Proof of Income (i.e. Salary slips/ Form 16 etc)
Repayment Tenure
Repayment will commence one year after completion of course or 6 months after securing a job,
whichever is earlier.
24 | P a g e
BANK OF BARODA Education Loan
Baroda Education Loan

Education is the most important investment one makes in life. Higher studies and
specialization in certain fields call for additional financial support from time to time.
Whether you are planning school education (nursery to standard XII) of your child, pursuing
a graduate or post-graduate degree, the Bank of Baroda Education Loans, can help finance
your ambitions and goals.
Following are the loan options available:
Bank of Baroda presents a one of its kind finance option for parents of students pursuing
school education. These loans are available for studies from Nursery to Senior Secondary
School.
• No processing & documentation charges.

• No Margin.
• No security required.
Eligibility :
• Should be an Indian national residing in India.

• Student should have secured admission to a recognized school / High school / Jr.
College (including CBSE / ICSE / State Board) for any of the following courses
1. Stage I : Nursery to Vth STD.
2. Stage II : VI th to VIII STD.
3. Stage III : IX th to XII th STD.
Coverage of expenses for :
• Fee payable to college / school.

• Examination / Library / Laboratory Fee.
• Fee and other charges payable to hostel.
• Purchase of books / equipments / instruments / uniforms.
• Personal Computers / Laptops wherever required.
• Caution deposit / building fund / refundable deposit supported by institution bills /
receipts
25 | P a g
Maximum Loan Amount : Rs.4.00 Lacs
Repayment Period :
• Loan for each yearly sub limit is repayable in 12 equal monthly instalments. First
instalment to be due 12 months after first disbursement of each year's loan
component.
The parents must be residing in the place for a minimum period of -3- years, except in the
case of transferable job.
Security :
• In case the loan is given for purchase of computer the same is to be hypothecated to
the bank.
Rate of Interest :
• 1% concession in rate of interest to loans for girl students.

• Interest to be serviced as and when applied during moratorium period.
• Penal Interest @ 2% on overdue amount if the loan amount exceeds Rs. 2/- lacks
Baroda Gyan
A loan product specially designed for students pursuing Graduation, Post - Graduation,
Professional & Other courses in India. Bank of Baroda extends a helping hand to energize
your studies and promote education of the youth.
• No processing charges.
• No Margin on loans upto 4 lacs.
• Free Debit Card.
Courses Eligible :
• All Graduation courses.

• All Post Graduation courses & Doctorate courses.
• Professional Courses viz. Engineering, Medical, Agriculture, Veterinary, Law,
Dental, Management, Computer, Ayurved, Homeopathy, Physiotherapy, Hotel
Management, Hospital Management, Interior Designing, Architecture, Event
Management, Mass Communication, Fashion Technology, etc.
• Computer certificate courses of reputed institutes accredited to Dept. of
Electronics or institutes affiliated to Universities.
• Courses like C.A, ICWA, CFA, CS, etc.
26 | P a g
• Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc.
• Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc.,
approved by Director General of Civil Aviation/shipping.
• Other courses leading to diploma / degree etc. conducted by colleges/universities
approved by UGC/Govt./ AICTE/ AIBMS/ ICMR etc.
• Courses offered in India by reputed foreign Universities.
• Evening courses of institutes approved by
State/Central/Govt./UGC/AICTE/AIBMS/ICMR/ICAR.
• Courses offered by National Institutes and other reputed private institutions. The
College/Institute must have been approved by the State/Central
Govt./UGC/AICTE,etc.
Student Eligibility :
• Should be Resident Indian.

• Secured admission to either of above courses
Coverage of Expenses:
• Fee payable to college / Institution / University.

• Examination / Library / Laboratory Fee.
• Fee and other charges payable to hostel.
• Purchase of books / equipments / instruments.
• Personal Computers / Laptops wherever required.
• Caution deposit / building fund / refundable deposit supported by institution bills /
receipts.
• Any other expenses required to complete the course - like study tours, project
works, thesis, etc.
Maximum Loan Amount : Rs.10.00 Lacs.
Margin :
Upto Rs. 4.00 lacs :- NIL
Above Rs. 4.00 lacs :- 5%
• Margin is to be contributed on pro rata basis on year to year basis as and when
disbursements are availed.
Repayment Holiday / Moratorium Period :
• Course period + 1 year or 6 months after getting job, whichever is earlier.
27 | P a g
Repayment Period :
• The loan is repayable in 5-7 years after the above period.

• Security :
• Upto Rs.4 lacs : No security
• Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable
third
• party guarantee alogn with assignment of future income.
• Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
• amount along with assignment of future income
• Rate of Interest :
• Simple interest to be charged at monthly rests during the repayment holiday /
moratorium period.
• 1% interest concession is provided if interest debited during repayment holiday is
serviced.
• 1% Concession in rate of interest to loans for girl student.
• Penal interest @ 2% p.a. on overdue amount, if the loan amount exceeds
Rs.4.00 lacs.
• For loans above 4 lacs, interest rate will be 2 % above base rate for ISB,
Hyderabad Students which is 2 % less than that for students of other institutes
Baroda Scholar
Bank of Baroda presents financial assistance to students going abroad for Professional /
Technical studies. The loan offering is designed to empower you with the financial capability
to realise your dreams... Achieve your goals... Reach out to the maximum limits...
Eligibility of Courses :
Graduate/Post Graduate / Doctorate / Job Oriented Professional / Technical Courses

offered by reputed Universities overseas.
Regular Degree/ Diploma courses like Aeronautical, pilot training, shipping etc. The Institute
should be recognized by the competent local aviation / shipping authority and Director
General of Civil Aviation/shipping in India.
Student Eligibility :
• Should be an Indian National.

• Secured admission to Professional/Technical Courses at foreign
Universities/Institutions.
Coverage of expenses (for overseas studies) :
28 | P a g
• Admission/Tuition fees to College/University.
• Hostel/Mess charges.
• Examination/Library/Laboratory fee.
• Purchase of books/equipments/instruments.
• Caution deposit/building fund/refundable deposit supported by institution
bills/receipts.
• One way travel expenses/Passage money.
• Purchase of computers if essential for completion of the course.
• Any other expense required to complete the course e.g. study tour, project work,
thesis etc.
Maximum amount of loan: Rs. 20.00 Lacs.
Margin: 15%
Repayment Period :
Repayment Holiday/Moratorium Period :
• Course period + 1 year or 6 months after getting job, whichever is earlier.

The loan is repayable in 5-7 years after the above period.
Security:
• Upto Rs.4.00/- lacs : No security

• Above Rs. 4.00 Lacs and up to Rs. 7.5 lacs: Collateral in the form of a suitable
third
• party guarantee alogn with assignment of future income.
• Above Rs.7.5 lacs: Tangible collateral security equal to 100% of the loan
• amount along with assignment of future income
Rate of Interest:
• Simple interest during repayment holiday/moratorium period.

• 1% interest concession, if interest debited during the repayment holiday is
serviced.
• 1% Concession in rate of interest to loans for girl student.
• Penal interest @ 2% p.a. on overdue amount if loan exceeds Rs.4/- lacs.
29 | P a g
UCO Bank Education Loan,
UCO Bank Provides Education Loan, for eligible Indian students studies in India and
Abroad. UCO Bank Education Loan Interest rates vary depends on the total Loan
sanctioned and type of Course. UCO Bank Provides Education loan of 4 laths to 10 laths for
Indian Education courses of Graduation and Post graduations. For Abroad studies the loan
will be up to 20 laths. You can have the complete details on UCO Bank Education loan,
Interest rates, Documents required while submitting the application form, Schemes,
courses, re-payment and eligibility for UCO Bank Education loan for student to study in
India & abroad
UCO Bank Education loan interest rates, terms and conditions
UCO Bank Education loan starts form 4 laths and the max loan scheme is 10 laths for
Education in India. And up to 20 laths for study abroad. Students, who want to take loan
amount of 4 laths , no need to give any security. UCO Bank Education loan re-payment
period is 5-7 years.
For more than 4 laths and up to 7.5 laths of Education loan, student have to give third party
guarantee to re payment of Education loan along with parent’s(Third party) Salary
documents, Bank balance sheet and other Property proofs.
For more than 7.5 laths and up to 10 laths, UCO Bank executives will check all necessary
documents, according to UCO Bank Education loan terms and conditions to provide loan as
per parent’s future Income and type of course selected by student.
Up to 20 laths education loan(only for foreign studies), students have to submit all
documents with proof of admission in college, according to UCO Bank terms and conditions
UCO Bank Education loan Interest Rate:
For 4 laths of UCO Bank loan, students have to pay 13.75% per year and the amount of
above 4 laths and below 7.5 laths need to pay 14.50% of interest. Candidates, who got
more than 7.5 laths and up to 20 laths, have to pay interest rate of 14.50% per year. You
can have the below chart to get conclusion on UCO Bank Education loan Interest rate.
4 Lakhs- 13.75% p.a
4 laths to 7.5 laths- 14.50% p.a
Above 7.5 lakh – 14.50% p.a
UCO Bank Education Loan – courses:
30 | P a g
1. Regular Professional and Technical Education courses of Graduation and Post-
graduation studies, which are approved by AICTE/UGC/Government of India.
2. Aeronautical, Shipping degree and Diploma courses
3. Teacher Training and Nursing Courses, approved by state government or central govt of
India.
4. Job oriented professional courses for abroad studies
4. Degree/Intermediate courses
UCO Bank Education Loan covers:
UCO Bank Education Loan in India and foreign includes College fee, exam fee, building fee
and other fees like library/lab etc. With this Education loan you can purchase any 2-
wheeler. You can have the complete expenses and how this Education loan helps you to
study in India and abroad
Examination fee
Tuition Fee
2-Wheeler/travel expenses
Laboratory/Library fees
Books and other Equipment charges
Purchase Computer/Laptop
Insurance
Hostel Fee etc
Documents required while applying for UCO Bank Education loan to

study in India and abroad:
Students have to submit the following documents to get UCO Bank Education loan.
Candidates have to fill the UCO Bank Education loan application form and must include
relevant necessary documents of latest last 2 months salary slip of parent and income tax
assessment sheet. Student have to attach one set of Education qualification certificates of
his/her last studies like 10th class and Intermediate etc. you can have the complete details
on UCO Bank Education loan documents need to submit to approve/get loan.
Income Proof-Any either salary slip/other
Residency proof
Education Certificates of SSC, Intermediate and other necessary, if required.
Income tax assessment of last 2 years
Last 6 months of Bank account balance sheet
Latest 2 passport Photo graphs
Admissions proof in college
Passport/Visa
31 | P a g
Repayment:
1. After 1 year completion of course or After 6 months of getting job, whichever is happen
earlier?
2. Loan re Payment period is commencement of 5-7 years
to Get more details on UCO Bank Education Loan
32 | P a g
ICICI Education Loan
The Educational Loan Scheme aims at providing financial support to deserving/ meritorious
students for pursuing higher education in India and abroad.
Eligible Student :
 Should be an Indian National

 Secured admission to professional/ technical courses in India or Abroad through
Entrance Test / Merit Based Selection process.
Courses Eligible :
 Studies in India
Graduation courses, Post Graduation courses, Professional courses, Computer

certificate courses, Courses like ICWA, CA etc, Courses conducted by IIM, IIT etc.,
Courses offered in India by reputed foreign universities, Evening courses of
approved institutes, Other courses leading to diploma/ degree etc. conducted by
colleges/ universities approved by UGC/ Govt etc., Courses offered by National
Institutes and other reputed private institutions, Teacher Training Course/Nursing
Course/B.Ed approved either by the Central Government or by State Government
and such courses should lead to Degree or Diploma Course
 Studies abroad
Graduation : For job oriented professional/ technical courses offered by reputed

universities, Post graduation: MCA, MBA, MS, etc., Courses conducted by CIMA-
London, CPA in USA etc.
Expenses considered for loan :
 Fee payable to college/ school/ hostel

 Hostel expenses (Wherever students have to stay outside the campus or avail
private accommodation banks may consider reasonable lodging & boarding
expenses)
 Examination/ Library/ Laboratory fee
 Purchase of books/ equipments/ instruments/ uniforms
 Caution deposit/ building fund/ refundable deposit supported by Institution bills/
receipts
33 | P a g
 Travel expenses/ passage money for studies abroad.
Quantum of finance :
 Need based finance subject to repaying capacity of the parents/ students with margin
and the following ceilings.
 Studies in India - Maximum Rs.10.00 lacs
 Studies abroad - Maximum Rs.20.00 lacs
Margin :
 Upto Rs 4 lacs : Nil

 Above Rs 4 lacs : Studies in India 5% Studies Abroad 15%
Security :
 Loans Upto Rs 4 lacs - Co obligation of parents.
Further wherever parents are not there banks could consider grandparent as co
obligator to the loans taking into account their net worth
 Above Rs 4 lacs and upto Rs. 7.5 lacs
Co obligation of parents along with Collateral in the form of a suitable third party
guarantee for 100% of the loan amount to be taken
 For cases above Rs 7.5 lacs
Co obligation of parents along with Collateral security of 100% value of loan

Assignment of future income of the student for payment of the loan instalments for all loans
The co-obligator should be parent(s)/guardian of the student borrower. In case of married
person, co-obligator can be either spouse or the parent(s)/parents-in-law
Rate of Interest :
 I Base + Applicable Margin

 At least 0.50% concession in interest rates on Education Loans to girl students for
pursuing higher education in India and abroad
 Penal interest @2%
Repayment / Holiday :
 The repayment holiday shall be a year more than the period of the course or 6
months after the borrower gets a job, whichever is earlier.
 The loan shall be repaid in 5 - 7 years after commencement of repayment
34 | P a g
CENTRAL BANK OF INDIA Education Loan
Objective
The scheme aims at providing financial assistance on reasonable terms :
 To the poor and needy to undertake basic education.

 To the student/employed persons to pursue higher education
Eligibility
Studies in India :
 School education including plus 2 stages.

 Graduation courses - B.A., B.Com., B.Sc. etc
 Post Graduation courses - Masters & Ph.D.
 Professional courses - Engineering, Medical, Agriculture, Veterinary, Law,
 Dental, Management, Computer etc.
 Computer Certificate course of reputed institutions accredited to
 Department of Electronics or Institutions affiliated to University.
 Courses like ICWA, CA, CFA, etc.
 Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
 Courses offered in India by reputed Foreign Universities.
 Evening courses of approved institutions.
 Other courses leading to Diploma/Degree etc. conducted by Colleges/Universities
approved by UGC/Govt./AICTE/ICMR etc.
Courses offered by National Institutes and other reputed private institutions. Any other
institution courses depending on future prospects/recognition by user institutions deemed
proper by the Bank.
Studies Abroad:
• Graduation: For job oriented professional/technical courses offered by reputed

Universities.
• Post Graduation: MCA, MBA, MS. etc.
• Courses conducted by Chartered Institute of Management Accountants (CIMA) -
London, Chartered Public Accountant (CPA) - USA etc.
35 | P a g
Students Eligibility
• Should be an Indian National.

• Student should be in the age group of 16 to 40 yrs
• Secured admission to Professional/Technical courses through Entrance
Test/Selection Process.
• Secured admission to Foreign University/Institutions.
Expenses Considered for Loan
• Fee payable to College/School/Hostel.

• Examination/Library/Laboratory fee.
• Purchase of books/equipments/instruments/uniforms .
• Caution deposit/building fund/ refundable deposit.
• Travel expenses/passage money for studies abroad.
• Purchase of computers - essential for completion of the course.
• Any other expenses required to complete the course - like study tours, project
work thesis etc.
• To meet insurance premium for the policy on the life of the student.
Reimbursement of these expenses already incurred/loan taken from identified sources (to
meet the contingencies) by the applicant on merits is allowed, subject to production of
original receipts within one month if applicant has secured admission in India and within six
weeks if the applicant is going abroad.
Quantum of Finance
Need based finance subject to repaying capacity of the parents/students with margin and
the following ceilings:
Studies in India - Maximum Rs. 7.50 lacs
Studies Abroad - Maximum Rs. 15.00 lacs
Margin
• Up to Rs. 4 lacs - No margin

• Above Rs. 4 Lakhs In India 5%
• Abroad 15%
* Scholarship assistance to be included in margin.
36 | P a g
** Margin may be brought-in on year-to-year basis as and when disbursements are
made on a pro-rata basis.
Security
• Up to Rs.4 Lakhs: No security .Only to take co-obligation of either or both

parents/guardian
• Above Rs.4 Lakhs and upto Rs 7.50 Lakhs: Collateral in the form of
satisfacfactory third party guarantee
• Above Rs.7.50 Lakhs: Collateral security of suitable value or co-obligation of
parents/ guardians/ third party along with the assignment of future income of
the student for payment of instalments
Interest Rates
As per new rates. For more details visit bank site
Concessions
1% interest concession, if the interest is serviced during study period.

The interest is charged quarterly/monthly on a simple interest basis during
Repayment /Moratorium period.
37 | P a g
IDBI BANK Education loan
Education loans from IDBI Bank aim at providing financial support to deserving / meritorious
students for pursuing higher education in India and abroad. With an array of courses to
choose from and easy repayment options, IDBI Bank makes sure you get complete
financial backing.
Courses offered
An instalment based loan for all courses mentioned below:
a. Studies in India:
 Graduation courses: BA, B.Com., B.Sc., etc

 Post Graduation courses: Masters & PhD
 Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Computer etc
 Computer certificate courses of reputed institutes accredited to Dept. of Electronics
or institutes affiliated to university
 Courses like ICWA, CA, CFA etc
 Courses conducted by IIM, IIT, IISc, XLRI. NIFT etc
 Courses offered in India by reputed foreign universities
 Evening courses of approved institutes
 Other courses leading to diploma / degree etc. conducted by colleges / universities
approved by UGC / Govt. / AICTE/ AIBMS / ICMR etc
 Courses offered by National Institutes and other reputed private institutions. Banks
may have the system of appraising other institution courses depending on future
prospects/ recognition by user institutions.
b. Studies abroad:
 Graduation: For job oriented professional / technical courses offered by reputed

universities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA-
London, CPA in USA etc.
c. Special Courses
 Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc.,

approved by Director General of Civil Aviation/Shipping. In case the course is
pursued abroad, the competent local aviation/shipping authority should recognize the
Institute.
Loan Amount
Maximum loan amount:
 Study in India- 10 laths
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 Study Abroad - 20 laths
Loan Margin:
 Upto 4 lac - Nil

 Above 4 lac - - studies in India - 5% of the total course expenditure - studies
abroad - 15% of the total course expenditure
Expenses Covered under Loan
 Fee payable to college / school/ hostel

 Examination / Library / Laboratory fee
 Purchase of books / equipments / instruments / uniforms
 Caution deposit / building fund / refundable deposit supported by Institution bills /
receipts
 Travel expenses / passage money for studies abroad
 Purchase of computers - essential for completion of the course
 Any other expense required to complete the course - like study tours, project work,
thesis, etc.
 Insurance premium for student borrower
Repayment terms
The repayment of loan to begin after the course period + 1 year or 6 months after getting
a job, whichever is earlier. The loan to be repaid within 5-7 years (maximum tenor 84
months) after commencement of repayment.
Rate of Interest
Loan amount Rate of Interest (RoI)

Up to 4 laths 13.25%p.a.(Linked to BR)
Above 4 laths and up to 7.5 laths 13.50%p.a.(Linked to BR)
Above 7.5 laths up to 20 laths 13.00%p.a.(Linked to BR)
Base Rate(BR) = 10.75% (w.e.f. August 01,2011) Base rate subject to change
Simple interest to be charged during repayment holiday and moratorium Accrued interest
during the repayment holiday period should be added to the EMIs.
Where the borrower has not opted for the repayment holiday or is willing to service the
interest during the repayment holiday (for principal) the interest rate should be 1% lower
than the applicable rate.
 50 basis points reduction for girl applicants

 50 basis points reduction for physically challenged applicants (subject to submission
of certificate from a medical practitioner)
39 | P a g
 25 basis points for students of SC/ST/Minority community
Collateral Security
Up to 4 lacs No security
Above 4 lacs and up to 7.5 lacs Collateral in the form of a third party guarantee
Above 7.5 lacs Collateral security in the form of Land/ building,
(The minimum value shall be 1.33 times the
amount of loan sought).
Govt. securities/ Public Sector Bonds/ Units of
UTI, NSC, KVP, LIC policy, gold, shares/
debentures, bank deposit in the name of
parent/ guardian or in the name of the co-
applicant (The minimum value shall be 1.1
times of the amount of loan sought).
Wherever the land/ building is already mortgaged, the unencumbered portion can be taken
as security on IInd charge basis provided it covers the required loan amount. In case the
loan is given for purchase of a computer the same to be hypothecated to the Bank.
40 | P a g
Syndicate Bank Education Loan
SyndVidya
A Syndicate Bank's Education Loan Scheme
Syndicate Bank's involvement in education dates back to the decades prior to the
Nationalisation of Banks. The Bank was also the first to set up a string of Rural Training
Institutes aimed at empowering the young India in rural areas through entrepreneurial
education and training.
Continuing this commitment to education, the Bank has introduced a comprehensive

Education Loan Scheme-SyndVidya, which is more student responsive and parent friendly.
The Scheme covers the entire spectrum of educational needs from the school education to
super speciality courses including overseas courses. The scheme makes available need
based finance to cover expenses related to education such as fees payable to College,
Hostel, Examination, Library, Laboratory fees, caution deposit/building fund/refundable
deposit upto 10% of tuition fee, Cost of Books, Equipments, Travel expenses for studies
abroad etc. Only capitation fees, donation or external coaching fee are not covered. The
loan scheme carries liberal limits of Rs.10.00 lac for courses within the country and
Rs.20.00 lac for overseas courses. The scheme which is attractively priced at the Bank's
prime lending rate and other details are furnished below :
Eligibility Criteria
 Any student who is a major representing himself or a minor student represented

by parent or guardian of Indian nationality.
 Must have secured admission on the basis of merit to professional/
technical/other courses through entrance test/selection process.
Deviation/relaxation is also permitted under special circumstances.
 Must have secured admission to Foreign universities/Institution (for studies
abroad).
a) Studies in India.
 Graduation: B.A., B.Com, B.Sc., etc.

 Post graduation: Masters & PhD.
 Professional courses: Engineering, Medical, Agriculture, Veterinary, Law, Dental
Management, Computer etc. In respect of Management studies, apart from
University affiliation, course should also be approved by All India Council for
Technical Education. For Computer education, the recognised training Institute
should have accreditation of DOE, Govt of India to conduct the course under
Department of Electronics Accreditation of Computer Course (DOEACC)
Scheme.
41 | P a g
 Computer certificate courses of reputed institutes accredited to Department of
Electronics or Institutes affiliated to Universities.
 Courses like ICWA, CA, CFA etc.
 Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.
 Courses offered in India by reputed foreign universities.
 Evening courses of approved institutes.
 Other courses leading to Diploma / Degree etc. conducted by colleges /
universities approved by UGC / Govt./ AICTE / AIBMS / ICMR etc.
 Courses offered by National Institutes and other reputed private institutions
acceptable to the Bank.
b) Studies abroad.
 Graduation: For job oriented professional/technical courses offered by reputed

universities.
 Post Graduation: MCA, MBA, MS. Etc.
 Courses conducted by CIMA-London, CPA in USA etc.
 Other Foreign Diploma courses are not eligible.
Student Eligibility
 Should be an Indian National.

 Secured admission on the basis of merit to professional/technical courses
through Entrance Test/Selection process. Deviations/relaxations are also
permitted under special circumstances.
 Secured admission to foreign university / institutions.
 The student who is a major representing himself or a minor student represented
by parent or guardian.
Quantum of Loan
 Need based finance to meet expenses such as fee payable to college / school /
hostel, examination fee, cost of books, travel / passage fare for studies abroad
etc.
 Capitation fee / donation / external coaching fee are not eligible for finance.
 Maximum of Rs.10.00 lac for studies in India and Rs.20 lac for studies abroad.
Margin
 For loans upto Rs.4 lac - No Margin required.

 For loans above Rs.4 lac - 5% for study in India and 15% for study abroad.
Security
 For loans upto Rs.4.00 lac - NIL.
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 For loans above Rs.4.00 lac and upto Rs.7.50 lac - Collateral in the form of
satisfactory third party guarantee acceptable to the Bank.
 For loans above Rs.7.50 lac - Collateral security with 25% margin covering the
loan amount and assignment of future income of the student for payment of loan
instalments.
Interest (PLR presently 13.25%)
 For loans upto Rs.4.00 laths - PLR minus 1.50%

 For loans above Rs.4.00 laths - PLR minus 1.00%
 Girl students and students belonging to SC/ST category are eligible for
concession of 0.50% on the above rates.
 Girl students under SC/ST category are eligible for a further concession of 0.25%
on the above rates.(Total concession of 0.75%)
 Simple interest to be charged during the Repayment holiday/Moratorium period.
 Penal interest to be charged as applicable
 No processing charges/service charges are levied for educational loans
Repayment
 In 5 to 7 years commencing one year after completion of the course or 6 months

after securing the job whichever is earlier.
Capability Certificate
 Capability certificate for students going abroad for higher studies are also issued
on production of financial and other supporting documents.
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RESEARCH METHODHOLOGY
Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design,
sampling procedure & fieldwork done & finally the analysis procedure. The methodology
used in the study consistent of sample survey using both primary & secondary data. The
primary data has been collected with the help of questionnaire as well as personal
observation book, magazine; journals have been referred for secondary data. The
questionnaire has been drafted & presented by the researcher himself.
Steps in Research methodology:

Step 1: Objective of study of Education loan
The first step in this study is the defining the objective of the study and according to that
develops the further plan.
Step 2: Developing plan for gathering information

This stage calls for developing the most efficient plan for gathering the need information.
Decide the methods of data collection and the data sources, sampling method and contact
method. Decide the primary and secouces for collecting the data.
Step 3: collect the information

this is the most important step in the study. This is up to the individual’s ability to gather the
information from the selected samples.
Step 4 : analyze the information
Step 5: Present the findings
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Defining the problem
& Research objective
Develop research plan
Collect the information
Analaysis of the
information
Present the findings
Make the decision
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Research Design
MANAGEMENT QUESTION:
 For what course the student taking education loan.
 How much amount they generally like to take.
 From which bank they generally like to take loan.
 The customer are satisfied with services provided & disbursement
 What are the criteria, a customer consider while taking education loan.
RESEARCH OBJECTIVE:
1. To identify the factor and its importance in education loan customer prospect.
2. To understand customer preference to selecting bank for education.
3. To understand satisfaction and dissatisfaction level of customer who is already taken
to education loan.
4. To understand general practices to taking education loan and process followed.
Type of Research Design

Descriptive Study:
Descriptive research is also called Statistical Research. The main goal of this type of
research is to describe the data and characteristics about what is being studied. The idea
behind this type of research is to study frequencies, averages, and other statistical
calculations. Although this research is highly accurate, it does not gather the causes behind
a situation. Descriptive research is mainly done when a researcher wants to gain a better
understanding of a topic for example, a frozen ready meals company learns that there is a
growing demand for fresh ready meals but doesn’t know much about the area of fresh food
and so has to carry out research in order to gain a better understanding. It is quantitative
and uses surveys and panels and also the use of probability sampling.
Descriptive research is the exploration of the existing certain phenomena. The details of the
facts won’t be known. The existing phenomena’s facts are not known to the persons.
Sample size: 100

95% confidence level
8% confidence interval
Collage going population of Ahemdabad= 5 lac.
Method of sampling:
Convenience sampling
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Contact method – Personal interval with the help of questioner
Data collection time – 2 May,2012 to 4 May,2012
Data analysis method :-
 Simple graph and tables
 ANOVA, Chi-Square
 Average
 Correlation, rogation
Research Instrument
 Questionnaire
Software used
 Excel & Sample size calculator
Sampling Design
The sampling design adopted was convenience and quota of non probabilistic in which we
got filled questionnaire from 56 respondents 50 were from State Bank of India’s customer
and the rest 6 from the customer’s of other banks. So my sample size would be 56. Eligible
respondents will be adults over the age of 18. The quota that we had taken was on the
basis of the Net Monthly Income of the household and the Amount Sanctioned for the Loan
dividing it equally on both the range.
Questionnaire Formulation
The scaling technique used in the questionnaire was the Non-Comparative Scaling
technique. Under Itemized Rating we used the Likert Scale where we asked the questions
for which the respondents would had to answer on the scale of 1to 5, 1 being strongly
disagree and 5 being strongly agree, and also for the satisfaction level of the customers 1
being totally dissatisfied and 5 being totally satisfied.
Data Collection
For the complete survey respondents were chosen in such a way that the responses can be
analyzed on each other. I chose respondents mainly from State Bank of India keeping in
mind about the Quota of the Net Monthly Income of the house hold and the Loan amount to
be sanctioned. I conducted a personal interview for the customers who visited the bank and
the maximum number of my responses was taken on an interview over telephone. For the
47 | P a g
responses of the other bank’s customer I visited other banks and interviewed through
laddering questions about not being a customer of the State Bank of India.
Source of data collection
a. Primary data
Primary data is a data, which is gather by the researcher himself. This data can be collected
through experiment or through survey. The various method of primary data collection is,
1. Observation Method
2. Interview method
3. Questionnaire method
The method adopted in this study is:
Personal interview through structured questionnaire of existing customers who already

taken a loan from different banks etc, Sample of questionnaire is attached as an annexure
b. Secondary data.
Secondary data refers to the data which have already been collected and analyzed by
someone else usually published data are available in form of,
1. Various publication of central, state and local government.
2. Book magazine and newspapers.
3. Accounting records, sales force reports etc.
4. Website of banks.
The method adopted in this study is:
Collecting data from website of various banks, articles given in various sites etc. This
mentioned in the references of the project
Diagrammatic Approach
Data analysis involved converting a serious of recorded observation into description

statement. The analysis will be showed with the help of tables.
Sampling plan
This plan calls for the main three decision for selecting the sample of bank from whole
population of bank in the city.
1. Sample Units
Here I define the target population that will be sampled that is people who taken the
educational loan. Total number of banks working in India are approximately 50.
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2. Sample size
Large sample gives more reliable results than small samples. I have taken 20% of
population of study i.e. 10 units banks are undertaken for study.
3. Data collection procedure

Here, i took all the information needed for the study, by means of personal visits to
banks and by interview. This is the most versatile method. The interviewer can ask more
number of question; can record additional about the respondents.
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Analysis
As per questionnaire and market surveys I have find out different responses from different
people. According to their responses I analyze the findings and draw certain remarks.
Gender
male 71
female 29
Total 100
male female
It has been observed that approximately 71% of correspondent respondent are male who
take the education loan and 29 % of female are taken education loan for their completing
their studies.
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Age
Below 15 0
15 to 20 18
20 to 25 74
25 above 8
Total 100
Below 15
15 to 20
20 to 25
25 above
From the above collected data, it is clear that 74% of the customer for education loan are
fall in the age of20- 25. So the Target market for Educational loan provider institute are
Youth.
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Education
HSE 6
UG 22
PG 72
Total 100
Education HSE
UG PG
It is clear that the youth which falling in age group of 20-25, are take loan for their higher
studies, and complete their post gradation. So the institute and bank which provide the
educational loan can tie-up with those educational institute who provide P.G. cources like
M.B.A, M.C.A, M.E, B.E & study abroad.
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Professional
student 69
Non- Student 31
Total 100
Professional student
Non- Student
Sample population who willing to take education loan are include 69% of student and 31%
are completed the studies but not yet return the loan amount to the bank.
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Name
Axis 12
SBI 31
BOB 10
BOI 8
ICICI 5
IDBI 3
HDFC 2
PNB 5
CBI 17
OTHER 7
Total 100
Name Axis SBI BOB BOI ICICI IDBI HDFC PNB CBI
From this survey it is come to know that SBI is most trusted bank and majority of person
have their bank account in SBI Bank. After that CBI, Axis, BOB have established the trust in
their customers mind.
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1. Have you taken a loan for financing your education?
YES 100
NO 0
Total 100
120
100
80
60
Series1
40
20
0
YES NO
Question 1
In my sample size all 100% the respondent are taken the education loan.
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2. What is the amount have you taken in Education loan?
Above 1 lack □ 1-3 lack □ 3-5 lack □ 5-8 lack □ Above 8 lack □
Above 1 lac 6
1-3 Lac 33
3-5 Lac 42
5-8 Lac 10
Above 8 Lac 9
Total 100
45
40
35
30
25
20
15
10
5 Series1
0
Above 1 lac1-3 Lac3-5 Lac5-8 LacAbove 8 Lac
Question 2
Generally people take loan of upto 5 lac. For their education. There are some people who
take loan of more than 5 lac. But in some special condition of styling abroad or for long
duration cources.
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3. For which course have you taken this education loan for?
Other (please mention)

AS 8
B.E 11
LLB 2
MBBS 36
MBA 3
MCA 2
ME 1
Msc. 3
PGPGBM 31
OTHERS 3
Total 100
40
35
30
25
20
15
10
5
0 Series1
A
M
B
PGPGB
L
MB
OTHE
M
M
M
Question 3
36 respondent take education loan for completing their MBBS and 31 respondent out of 100
is taken loan for completing their PGPGBM.
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4. From which bank have you taken this loan?
Please mention
Axis 11
SBI 27
BOB 6
BOI 5
ICICI 4
IDBI 2
HDFC 2
PNB 5
CBI 26
OTHER 12
Total 100
30
25
20
15
10
5
0
Series1
C
ICI
S
ID
B
HD
OTH
A
P
B
Question 4
According to my sample size 27 of prefer SBI for loan product, but 26 people prefer CBI, Axis
bank is prefer by 11 respondent, HDFC or OTHER Bank for loan because they are working with
that bank & it is easier for them to get loan from their bank & it easier for them to pay the
interest because it is less as compare to other bank because they are the employee of that
bank.
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5. Why you have selected this particular bank?
1=Highly Agree 2=Agree 3=Indifferent 4= Disagree 5=Highly Disagree

1 2 3 4 5
A).No Security required
B).Low Rate of Interest
C).Brand name
D).Loan repayment option
E).Less formalities in Documentation
F).Transparent transaction
G).Institute recommendation
H).Behaviour & Method of Treatment by Bank
Staff
I).Bank Infrastructure & Branches in Hometown
Other (Please Specify)
Descriptive Statistic
A) B) C) D) E) F) G) H) I)
Mean 2.07 2.15 2 2.01 2.19 2.21 2.35 2.19 2.23
Standard
Error 0.11742 0.0998 0.094280 0.09155 0.10317 0.1007 0.11315048 0.11073218 0.09832
Median 2 2 2 2 2 2 2 2 2
Mode 1 2 1 2 2 2 2 2 2
Standard
Deviation 1.17426 0.998736 0.94280 0.91557 1.0317 1.00799 1.13150476 1.10732182 0.98324
Sample
Variance 1.37888 0.99747 0.888889 0.83828 1.0645 1.01606 1.28030303 1.22616162 0.9667
Sum 207 215 200 201 219 221 235 219 223
Largest(1) 5 5 4 4 5 5 5 5 5
Smallest(1) 1 1 1 1 1 1 1 1 1
Confidence
Level(95.0%) 0.23299 0.198170 0.187073 0.18167 0.20472 0.20000 0.22451509 0.21971667 0.19509
Option A:
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Most of the respondent are agree to given criteria of selecting the bank. They have 2.07 %
agreement on it . varience in their view is very less about 1.37888 at 95% confidence level.
Option B:
agreement on it . varience in their view is very less about 0.99747at 95% confidence level.
Option C:
Most of the respondent are agree to given criteria of selecting the bank. They have 2 %
agreement on it . varience in their view is very less about 0.888889 at 95% confidence
level.
Option D:
Option E:
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Option F:
Option G:
level.
Option H:
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level.
Option I
Most of the people said that their preference based on the transparency and the lowest interest
rate education loan product. It is also preferred where no security is required and less paper
work done as compare to other bank and as their abnk have brand name and having
partnership with RBI (Reserve Bank of India) and other association.
Correlation
A) B) C) D) E) F) G) H) I)
A) 1
B) 0.524956 1
C) 0.447067 0.450546 1
D) 0.337569 0.506475 0.397855 1
E) 0.40577 0.530799 0.26998 0.393598 1
F) 0.414143 0.419904 0.286976 0.555889 0.64111 1
G) 0.407102 0.471498 0.321932 0.415846 0.582725 0.519418 1
H) 0.339242 0.467181 0.357988 0.416558 0.489711 0.452572 0.446223 1
I) 0.362105 0.458248 0.348682 0.468676 0.543942 0.531698 0.399031 0.710933 1
From the above table we can say that, Behaviour and treatment with customer is highly co
related with Bank’s infrastructure
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ANOVA
ON THE BASIS OF GENDER
OPTION A:
ANOVA
Source of
Variation SS do MS F P-value F crib
Between
Groups 0.188485 1 1.39103587 7.39 0.713590623 3.938110878
Within
Groups 136.3215 98 0.188484701
Total 136.51 99
Ho= Both Male and female preferred no security requirement at the time of taking education
loan
H 1= Both male and female preferred security requirement at the time of taking education
loan
HO is rejected
X1 = X2
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OPTION B:
ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 0.05 1 0.05 2.04 0.825274681 3.940162523
Within
Groups 97.95 96 1.0203125
Total 98 97
Ho== Both Male and female preferred low rate of interest while taking loan
H 1= Both Male and female preferred high rate of interest while taking loan
Conclusion : Ho is accepted
X1 = X2
OPTION C:
ANOVA
Source of
Between 0.47904821 3.94016252
Groups 0.45 1 0.45 1.98 7 3
Within 0.89114583
Groups 85.55 96 3
Total 86 97
Ho= Both Male and female preferred brand name of that bank form which they are going to
take loan
H 1= Both Male and female don’t required any brand name
X1 = X2
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OPTION D:
ANOVA
Source of
Between 0.33061 0.33061224 0.53439937 3.94016252
Groups 2 1 5 2.58 8 3
Within 81.6285 0.85029761
Groups 7 96 9
81.9591
Total 8 97
Ho= Both Male and female preferred large time in loan repayment
H 1= Both Male and female preferred less time in loan repayment
X1 = X2
OPTION E:
ANOVA
Source of
Between 0.17244 3.94016252
Groups 9 1 0.17244898 6.35 0.6906241 3
Within 103.878 1.08206845
Groups 6 96 2
Total 104.051 97
Ho= Both Male and female preferred less documentation formalities
H 1= Both Male and female preferred large documentation is trustable
Conclusion : Ho is rejected
X1 = X2
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OPTION F:
ANOVA
Source of
Between
Groups 0.05 1 0.05 20.0 0.827427463 3.940162523
Within Groups 100.45 96 1.046354167
Total 100.5 97
Ho= Both Male and female preferred transparent transaction
H 1= Both Male and female not preferred transparent transaction
Conclusion: Ho is rejected
X1 = X2
OPTION G:
ANOVA
Source of
Between
Groups 0.330612245 1 0.330612245 3.99 0.616273394 3.940162523
Within Groups 125.5571429 96 1.307886905
Total 125.8877551 97
Ho= Both Male and female preferred institute recordation
H 1= Both Male and female not preferred institute recommendation
Conclusion : Ho accepted
X1 = X2
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OPTION H:
ANOVA
Source of
Between
Groups 0.102040816 1 0.102040816 12.35 0.776808406 3.940162523
Within
Groups 121.2142857 96 1.26264881
Total 121.3163265 97
Ho= Both Male and female preferred behaviour of attening customer
H 1= Both Male and female not preferred behaviour of attain customer
X1 = X2
OPTION I:
ANOVA
Source of
Between 1.04489795 1.04489795 1.08376513 0.30047151 3.94016252
Groups 9 1 9 1 7 3
Within 92.5571428 0.96413690
Groups 6 96 5
93.6020408
Total 2 97
Ho= Both Male and female preferred good infrastructure of bank
H 1= Both Male and female not preferred good infrastructure of bank
Conclusion: Ho is accepted
X1 = X2
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ONTHE BAISIS OF EDUCATION:
OPTION A:
ANOVA
Source of
Between
Groups 0.100562136 2 0.050281068 28.4 0.965372117 3.093265919
Within
Groups 134.0643863 94 1.426216876
Total 134.1649485 96
Ho= all student preferred no security requirement during taking loan
H 1= all student not preferred security requirement during taking loan
X1 = X2
OPTION B:
ANOVA
Source of
Between
Groups 1.320788 2 0.660393979 1.53 0.523870295 3.093265919
Within
Groups 95.359624 94 1.01446409
Total 96.680412 96
Ho= all student preferred low rate of interest
H 1= all student not preferred low rate of interest
X1 = X2
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OPTION C:
ANOVA
Source of
Between 1.897518 1.06041 0.35041838 3.09326591
Groups 4 2 0.948759222 3 3 9
Within 84.10248
Groups 2 94 0.894707251
Total 86 96
Ho= all student preferred brand name of their bank
H 1= all student preferred brand name of their bank
X1 = X2
OPTION D:
ANOVA
Source of
Between 5.199731 3.182116 0.0460042 3.09326591
Groups 7 2 2.599865862 4 1 9
Within 76.80026
Groups 8 94 0.817024131
Total 82 96
Ho= all student preferred large time for repayment of loan
H 1= all student preferred less time of repayment of loan
X1 = X2
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OPTION E:
ANOVA
Source of
Between
Groups 0.0132092 2 0.006604576 178.33 0.993852226 3.093265919
Within
Groups 100.6672 94 1.070927694
Total 100.68041 96
Ho= all student preferred less documentation formalities
H 1= all student preferred large documentation formalities
X1 = X2
OPTION F:
ANOVA
Source of
Between
Groups 2.871314 2 1.435657 1.382954 0.255893 3.093266
Within
Groups 97.58229 94 1.03811
Total 100.4536 96
Ho= all student preferred transparent transaction
H 1= all student not preferred transparent transaction
X1 = X2
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OPTION G:
ANOVA
Source of
Between
Groups 1.139195 2 0.569598 2.303 0.645972 3.093266
Within
Groups 121.9536 94 1.297379
Total 123.0928 96
Ho= all student preferred institution recordation
H 1= all student not preferred institution recordation
X1 = X2
OPTION H:
ANOVA
Source of
Between
Groups 0.220805 2 0.110403 11.63 0.917917 3.093266
Within
Groups 121.0575 94 1.287846
Total 121.2784 96
Ho= all student preferred behaviour with customer
H 1= all student not preferred behaviour with customer
Conclusion : Ho is rejected
X1 = X2
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OPTION I:
ANOVA
Source of
Between
Groups 2.156358 2 1.078179 1.09807 0.337753 3.093266
Within
Groups 92.29725 94 0.981886
Total 94.45361 96
Ho= all student preferred good infrastructure of bank
H 1= all student not preferred good infrastructure of bank
X1 = X2
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Chi – square Test calculate degree of independence
Basis of education
Option A
Actual Expected (O-E) (O-E)2 (0-E)2/E

4 2.34 1.66 2.7556 1.177607
9 8.58 0.42 0.1764 0.020559
26 28.08 -2.08 4.3264 0.154074
1 2.1 -1.1 1.21 0.57619
6 7.7 -1.7 2.89 0.375325
28 25.2 2.8 7.84 0.311111
0 0.72 -0.72 0.5184 0.72
5 2.64 2.36 5.5696 2.109697
7 8.64 -1.64 2.6896 0.311296
0 0.48 -0.48 0.2304 0.48
0 1.76 -1.76 3.0976 1.76
8 5.76 2.24 5.0176 0.871111
1 0.36 0.64 0.4096 1.137778
2 1.32 0.68 0.4624 0.350303
3 4.32 -1.32 1.7424 0.403333
100 100 10.75839
Ho =The amount of agreement with respect to no security required is independent of

education
H1 = The amount of agreement with respect of no security required is dependent of

education
Degree of freedom : 8 %
confidence level: 95%
Table value: 15.57
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Option B:
2 1.56 0.44 0.1936 0.124103
3 5.72 -2.72 7.3984 1.293427
21 18.72 2.28 5.1984 0.277692
2 2.82 -0.82 0.6724 0.23844
12 10.34 1.66 2.7556 0.266499
33 33.84 -0.84 0.7056 0.020851
1 0.96 0.04 0.0016 0.001667
5 3.52 1.48 2.1904 0.622273
10 11.52 -1.52 2.3104 0.200556
1 0.48 0.52 0.2704 0.563333
1 1.76 -0.76 0.5776 0.328182
6 5.76 0.24 0.0576 0.01
0 0.18 -0.18 0.0324 0.18
1 0.66 0.34 0.1156 0.175152
2 2.16 -0.16 0.0256 0.011852
100 100 4.314025
Ho =The amount of agreement with respect to Low rate of interest is independent of

education
H1 = The amount of agreement with respect of Low rate of interest is dependent of

education
Table value: 15.57
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Option c:
3 2.22 0.78 0.6084 0.274054
7 8.14 -1.14 1.2996 0.159656
27 26.64 0.36 0.1296 0.004865
1 1.98 -0.98 0.9604 0.485051
6 7.26 -1.26 1.5876 0.218678
26 23.76 2.24 5.0176 0.211178
1 1.38 -0.38 0.1444 0.104638
6 5.06 0.94 0.8836 0.174625
16 16.56 -0.56 0.3136 0.018937
1 0.42 0.58 0.3364 0.800952
3 1.54 1.46 2.1316 1.384156
3 5.04 -2.04 4.1616 0.825714
0 0 0 0 #DIV/0!
0 0 0 0 #DIV/0!
0 0 0 0 #DIV/0!
100 100 5.4683
Ho =The amount of agreement with respect to Brand name is independent of education
H1 = The amount of agreement with respect of Brand name is dependent of education
Table value: 15.57
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Option D
3 1.98 1.02 1.0404 0.525455
4 7.26 -3.26 10.6276 1.463857
26 23.76 2.24 5.0176 0.211178
3 2.46 0.54 0.2916 0.118537
9 9.02 -0.02 0.0004 4.43E-05
29 29.52 -0.52 0.2704 0.00916
0 1.08 -1.08 1.1664 1.08
5 3.96 1.04 1.0816 0.273131
13 12.96 0.04 0.0016 0.000123
0 0.48 -0.48 0.2304 0.48
4 1.76 2.24 5.0176 2.850909
4 5.76 -1.76 3.0976 0.537778
0 0 0 0 #DIV/0!
0 0 0 0 #DIV/0!
0 0 0 0 #DIV/0!
100 100 11.5
Ho =The amount of agreement with respect to Loan repayment option is independent of

education
H1 = The amount of agreement with respect of Loan repayment option is dependent of

education
95% confidence level:
Table value: 15.57
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Option E:

2 1.56 0.44 0.1936 0.124103
6 5.72 0.28 0.0784 0.013706
18 18.72 -0.72 0.5184 0.027692
1 2.64 -1.64 2.6896 1.018788
9 9.68 -0.68 0.4624 0.047769
34 31.68 2.32 5.3824 0.169899
2 1.14 0.86 0.7396 0.648772
4 4.18 -0.18 0.0324 0.007751
13 13.68 -0.68 0.4624 0.033801
1 0.42 0.58 0.3364 0.800952
2 1.54 0.46 0.2116 0.137403
4 5.04 -1.04 1.0816 0.214603
0 0.24 -0.24 0.0576 0.24
1 0.88 0.12 0.0144 0.016364
3 2.88 0.12 0.0144 0.005
100 100 3.506603
Ho =The amount of agreement with respect to Less formalities in Documentation is

independent of education
H1 = The amount of agreement with respect of Less formalities in Documentation is

dependent of education
Table value: 15.57
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Option f:
2 1.56 0.44 0.1936 0.124103
5 5.72 -0.72 0.5184 0.090629
19 18.72 0.28 0.0784 0.004188
4 2.4 1.6 2.56 1.066667
7 8.8 -1.8 3.24 0.368182
29 28.8 0.2 0.04 0.001389
0 1.44 -1.44 2.0736 1.44
7 5.28 1.72 2.9584 0.560303
17 17.28 -0.28 0.0784 0.004537
0 0.42 -0.42 0.1764 0.42
2 1.54 0.46 0.2116 0.137403
5 5.04 -0.04 0.0016 0.000317
0 0.18 -0.18 0.0324 0.18
1 0.66 0.34 0.1156 0.175152
2 2.16 -0.16 0.0256 0.011852
100 100 4.584721
Ho =The amount of agreement with respect to Transparent transaction is independent of

education
H1 = The amount of agreement with respect of Transparent transaction is dependent of

education
Table value: 15.57
78 | P a g
Option g:
2 1.62 0.38 0.1444 0.089136
4 5.94 -1.94 3.7636 0.633603
21 19.44 1.56 2.4336 0.125185
1 1.86 -0.86 0.7396 0.397634
6 6.82 -0.82 0.6724 0.098592
24 22.32 1.68 2.8224 0.126452
2 1.62 0.38 0.1444 0.089136
8 5.94 2.06 4.2436 0.714411
17 19.44 -2.44 5.9536 0.306255
1 0.6 0.4 0.16 0.266667
3 2.2 0.8 0.64 0.290909
6 7.2 -1.2 1.44 0.2
0 0.3 -0.3 0.09 0.3
1 1.1 -0.1 0.01 0.009091
4 3.6 0.4 0.16 0.044444
100 100 3.691515
Ho =The amount of agreement with respect to Institute recommendation is independent of

education
H1 = The amount of agreement with respect of Institute recommendation is dependent of

education
Table value: 15.57
79 | P a g
Option h:
0 1.74 -1.74 3.0276 1.74
4 6.38 -2.38 5.6644 0.887837
25 20.88 4.12 16.9744 0.81295
5 2.52 2.48 6.1504 2.440635
11 9.24 1.76 3.0976 0.335238
26 30.24 -4.24 17.9776 0.594497
1 0.9 0.1 0.01 0.011111
5 3.3 1.7 2.89 0.875758
9 10.8 -1.8 3.24 0.3
0 0.54 -0.54 0.2916 0.54
1 1.98 -0.98 0.9604 0.485051
8 6.48 1.52 2.3104 0.356543
0 0.3 -0.3 0.09 0.3
1 1.1 -0.1 0.01 0.009091
4 3.6 0.4 0.16 0.044444
100 100 9.733155
Ho =The amount of agreement with respect to Behaviour & Method of Treatment by Bank
Staff is independent of education
H1 = The amount of agreement with respect of Behaviour & Method of Treatment by Bank
Staff is dependent of education
Table value: 15.57
80 | P a g
Option i:
0 1.38 -1.38 1.9044 1.38
4 5.06 -1.06 1.1236 0.222055
19 16.56 2.44 5.9536 0.359517
4 2.58 1.42 2.0164 0.78155
6 9.46 -3.46 11.9716 1.265497
33 30.96 2.04 4.1616 0.134419
2 1.56 0.44 0.1936 0.124103
10 5.72 4.28 18.3184 3.202517
14 18.72 -4.72 22.2784 1.190085
0 0.24 -0.24 0.0576 0.24
1 0.88 0.12 0.0144 0.016364
3 2.88 0.12 0.0144 0.005
0 0.24 -0.24 0.0576 0.24
1 0.88 0.12 0.0144 0.016364
3 2.88 0.12 0.0144 0.005
100 100 9.182471
Ho =The amount of agreement with respect to Bank Infrastructure & Branches in

Hometown is independent of education
H1 = The amount of agreement with respect of Bank Infrastructure & Branches in

Hometown is dependent of education
Table value: 15.57
81 | P a g
6. Have you given any security for loan?
Yes □ No □
If yes, please mention
YES 40
NO 60
Total 100
70
60
50
40
30
20
10
0 Series1
YESNO
Question 6
From above graph it is clearly shown that 40 respondent take loan on giving the security
but they take the loan of above 5 lac and majority of respondent who take loan below 4 lac
is without security
82 | P a g
7. What is the rate of interest at which you taken this education loan?
<9% □ 9% to 10% □ 10% to 11% □ 11% to 12% □ above 12% □
< 9% 11
9 % to 10 % 20
10 % to 11 % 34
11 % to 12 % 31
above 12 % 4
Total 100
40
35
30
25
20
15
10
5 Series1
0
< 9%9 % to 10 % 10 % to 11 11 % to 12 above 12 %

%%
Question 7
34% respondent take loan on 10 to 11 % and some of them are also taken loan on the
floating rate of interest.
83 | P a g
8. For how many years have you taken this loan for?
< 1 Year □ 1 – 5 Year □ 5 – 10 Year □ 10 Years □
< 1 year 9
1-5 year 63
5- 10 year 24
10 year 4
Total 100
70
60
50
40
30
20
10
0 Series1
< 1 year1-5 year5- 10 year10 year
Question 8
As the most of the respondent are student or those how just completed their studied. So in
this recession scenario the need time period of 1- 5 yare to repay the amount of loan to the
bank.
84 | P a g
9. Are you satisfied with the following dimension of education loan provided to
you by your bank?
1=Highly Satisfied 2=Satisfied 3= Neutral 4= Dissatisfied 5=Highly Dissatisfied

1 2 3 4 5
A).Rate of interest
B).Disbursement time part
C).Customer relationship & complain
Management
D).Process simplicity of taking loan
E).Completeness of information provided
F).Charges taken for approval
Descriptive Statistic:
A) B) C) D) E) F)
Mean 2.13 1.98 1.92 1.98 1.99 2.23

Standard Error 0.096038 0.084063 0.09711 0.103455 0.106832 0.1071721
Median 2 2 2 2 2 2
Mode 2 2 1 2 1 2
Standard Deviation 0.960377 0.840635 0.971097 1.034555 1.068323 1.07172098
Sample Variance 0.922323 0.706667 0.94303 1.070303 1.141313 1.14858586
Sum 213 198 192 198 199 223
Largest(1) 5 5 5 5 5 5
Smallest(1) 1 1 1 1 1 1
Confidence Level (95.0%) 0.19056 0.1668 0.192687 0.205278 0.211978 0.21265269
Option A:
85 | P a g
Most of the people said that their preference based on Charges taken for approval their mean
is 2.23, variation is 4 and the lowest interest rate education loan product with mean 2.19 . It is
also preferred where Disbursement time part is less and Process simplicity of taking loan
done as compare to other bank and as their bank have brand name and having partnership with
RBI (Reserve Bank of India) and other association. The variation in their thought are maximum
on the disbursement time part.
Correlation:
A) B) c) D) E) F)
A) 1
B) 0.528744 1
c) 0.455327 0.233118 1
D) 0.490633 0.44089 0.66197 1
E) 0.552606 0.494664 0.641825 0.712676 1
F) 0.451537 0.487265 0.415786 0.468813 0.575477 1
From The above table, we can observed that the information provided by bank regarding
the education loan and charges on approval are correlated.
86 | P a g
10. What is the time bank had taken for Processing & disbursing the
loan amount?
0-10 days □ 10-20 days □ 20-30 days □ 30-40 days □ 40 days and above □
0-10 Days 21
10-20 Days 19
20-30 Days 37
30-40 Days 17
40 Days and Above 6
Total 100
40
35
30
25
20
15
10
5
0 Series1
0-10 Days10-20 Days 20-30 Days 30-40 Days 40 Days and

Above
Question 10
It is observed that sample want 20-30 days time for disbursement and approval of their loan
amount.
87 | P a g
11. What % of total fees you got as a disbursement?
40-60% □ 60-80% □ 80% and above □

40- 60 % 22
60 - 80 % 33
80 % and above 45
Total 100
50
45
40
35
30
25
20
15
10 Series1
5
0
40- 60 %60 - 80 %80 % and above
Question 11
It is observed that maximum population wants that their 80% of loan amount is paid by
loan taken through bank. Because it is provided on no security required.
88 | P a g
12.Rank the following bank that you trust the most on the basis of your
preference for education loan (1 Highly Trust Worthy, 10 Low Trust Worthy)
Name of Bank Rank

ICICI Bank
Syndicate Bank
Axis Bank
HDFC bank
Bank of Baroda
IDBI Bank
State Bank of India
Central Bank of India
Punjab national Bank
Union Bank of India
Name Total Rank

ICICI 422 2
Syndicate Bank 583 8
Axis Bank 547 5
HDFC Bank 523 4
Bank of Baroda 489 3
IDBI Bank 619 10
SBI 411 1
CBI 596 9
PNB 650 6
UBI 664 7
From the rank given by my sample , it is come to know that SBI is most preferred bank as it
got 1st rank and IDBI is most unlike bank as it got 10th rank in the given option. ICICI got
2nd rank and it is pressed by bank of Baroda, Hdfc and Axix bank is generally preferred by
high class people. PNB is having tie up by other educational institute for giving salary and
educational loan and payment of fee. CBI is only preferred by those people who want to
take educational loan at lowest interest rate and lowest amount of security required.
89 | P a g
Findings and Interpretation
1. In my sample size all 100% the respondent are taken the education loan.
2. Generally people take loan of up to 5 lac. For their education. There are some people
who take loan of more than 5 lac. But in some special condition of styling abroad or
for long duration courses.
3. 36 respondent take education loan for completing their MBBS and 31 respondent out
of 100 is taken loan for completing their PGPGBM.
4. According to my sample size 27 of prefer SBI for loan product, but 26 people prefer CBI,
Axis bank is prefer by 11 respondent, HDFC or OTHER Bank for loan because they are
working with that bank & it is easier for them to get loan from their bank & it easier for
them to pay the interest because it is less as compare to other bank because they are
the employee of that bank.
5. Most of the people said that their preference based on the transparency and the lowest
interest rate education loan product. It is also preferred where no security is required and
less paper work done as compare to other bank and as their abnk have brand name and
having partnership with RBI (Reserve Bank of India) and other association.
6. Behaviour and treatment with customer is highly co related with Bank’s infrastructure
7. Both male and female and student preferred no security requirement, low rate of interest,
brand name of their bank.
8. They want large time in repayment of loan.
9. They required less document formalities.
10. They need transparency in their transaction
11. They didn’t required good infrastructure.
12. The amount of agreement with respect to no security required is independent of
education
13. The amount of agreement with respect to Low rate of interest is independent of
education
14. The amount of agreement with respect to Brand name is independent of education
15. The amount of agreement with respect to Loan repayment option is independent of
education
16. The amount of agreement with respect to Less formalities in Documentation is
independent of education
17. The amount of agreement with respect to Transparent transaction is independent of
education
18. The amount of agreement with respect to Institute recommendation is independent
of education
19. The amount of agreement with respect to Behaviour & Method of Treatment by Bank
Staff is independent of education
20. The amount of agreement with respect to Bank Infrastructure & Branches in
Hometown is independent of education
90 | P a g
21. 40 respondent take loan on giving the security but they take the loan of above 5 lac
and majority of respondent who take loan below 4 lac is without security
22. 34% respondent takes loan on 10 to 11 % and some of them are also taken loan on
the floating rate of interest.
23.As the most of the respondent are student or those how just completed their
studied. So in this recession scenario the need time period of 1- 5 yare to repay the
amount of loan to the bank.
24. Most of the people said that their preference based on Charges taken for approval their
mean is 2.23, variation is 4 and the lowest interest rate education loan product with
mean 2.19 . It is also preferred where Disbursement time part is less and Process
simplicity of taking loan done as compare to other bank and as their bank have brand
name and having partnership with RBI (Reserve Bank of India) and other association.
The variation in their thought is maximum on the disbursement time part.
25.we can observed that the information provided by bank regarding the education
loan and charges on approval are correlated
26. It is observed that sample want 20-30 days time for disbursement and approval of their loan
amount.
27. It is observed that maximum population wants that their 80% of loan amount is paid
by loan taken through bank. Because it is provided on no security required.
28. It is come to know that SBI is most preferred bank as it got 1st rank and IDBI is most
unlike bank as it got 10th rank in the given option. ICICI got 2nd rank and it is pressed
by Bank of Baroda, Hdfc and Axix bank is generally preferred by high class people.
PNB is having tie up by other educational institute for giving salary and educational
loan and payment of fee. CBI is only preferred by those people who want to take
educational loan at lowest interest rate and lowest amount of security required.
91 | P a g
LIMITATION OF THE STUDY
 It is a small research, which may be insufficient to give the real picture scope of the
retail loans in India.
 The research is based on observation and data collected from the internet and also
direct interview of bankers.
 The method of result is also limited to the reliability of method of investigations,
measurement and analysis of data.
 People were not interested in replying to the interview properly.
 Loan scheme has been revised very soon. So the study is effective till December,
2012.
 Education loan is provided for some special customers. It is not possible for every
customer to get educational loans.
 All the suggestions are up to my knowledge and the study conducted by me by
visiting various websites, research papers and direct interview to banks.
92 | P a g
SUGGESTION AND RECOMMANDATION
 Interest rate, procession fees, tenure, security and margin money all these are
important in all kind of education loan. So bank should revise all above keeping in
view of other bank. Bank should appoint some marketing executive for this purpose
who can give information of market and other banks, revision of loan timely so that
the bank can revise it very soon.
 Limit of the loan amount of all retail loans should keep increasing keeping in view of
private sector banks and other nationalized banks.
 One of the major strengths of Bank is timely processing of loan application. So, it
must keep on processing the loan application as soon s possible.
 In education loan, CBI is major competitor of SBI in the northern part of India.
 Bank must adopt new methodology for recovering balance.
 Bank needs to identify and select the sector in which the funds are invested in large
and long time period such as Education loan.
93 | P a g
ANNEXURE
QUESTIONNAIRE
I am conducting a research project concerning Educational loan. Your opinion will be very
helpful to me .I assure you that the survey data is only for academic research and won’t be
used for any commercial purpose. If you have ever taken any Educational loan, then please
read the following question carefully and tick the option that you consider correct and
appropriate. Thanks for your cooperation.
Personal Information:
Name:
E-mail Address:
Phone no.:
Gender: Male □ Female □
Age: Below 15 □ 15-20 □ 20- 25 □ above 20 □
Education: Higher school and below □ Undergraduate □ Post graduate and above □
Professional: Student □ Non- Student □
Do you have Bank Account: Yes □ No □

if yes, please give name of bank
1. Have you taken a loan for financing your education?
94 | P a g
Yes □ No □
2. What is the amount have you taken in Education loan?
Above 1 lack □ 1-3 lack □ 3-5 lack □ 5-8 lack □ Above 8 lack □
3. For which course have you taken this education loan for?
Other (please mention)
4. From which bank have you taken this loan?
Please mention
5. Why you have selected this particular bank?
1=Highly Agree 2=Agree 3=Indifferent 4= Disagree 5=Highly Disagree

1 2 3 4 5
No Security required
Low Rate of Interest
Brand name
Loan repayment option
Less formalities in Documentation
Transparent transaction
Institute recommendation
Behaviour & Method of Treatment by Bank
Staff
Bank Infrastructure & Branches in
Hometown
Other (Please Specify)
6. Have you given any security for loan?
Yes □ No □
If yes, please mention
95 | P a g
7. What is the rate of interest at which you taken this education loan?
<9% □ 9% to 10% □ 10% to 11% □ 11% to 12% □ above 12% □

8. For how many years have you taken this loan for?
< 1 Year □ 1 – 5 Year □ 5 – 10 Year □ 10 Years □

9 . Are you satisfied with the following dimension of education loan provided to
you by your bank?
1=Highly Satisfied 2=Satisfied 3= Neutral 4= Dissatisfied 5=Highly

Dissatisfied
1 2 3 4 5
Rate of interest
Disbursement time part
Customer relationship & complain Management
Process simplicity of taking loan
Completeness of information provided
Charges taken for approval
10. What is the time bank had taken for Processing & disbursing the
loan amount?
0-10 days □ 10-20 days □ 20-30 days □ 30-40 days □ 40 days and above □
11. What % of total fees you got as a disbursement?
40-60% □ 60-80% □ 80% and above □

12.Rank the following bank that you trust the most on the basis of your
preference for education loan (1 Highly Trust Worthy, 10 Low Trust Worthy)
Name of Bank Rank

ICICI Bank
Syndicate Bank
Axis Bank
HDFC bank
Bank of Baroda
IDBI Bank
96 | P a g
State Bank of India
Central Bank of India
Punjab national Bank
Union Bank of India
******************************* Thank You **********************************
97 | P a g
REFERENCES:
Website:
 http://www.deal4loans.com/
 www.icicibank.com/
 www.bankofbaroda.com/
 www.bankofindia.com/homepage1.aspx
 www.axisbank.com/
 www.sbi.co.in/
 www.syndicatebank.in/
 www.unionbankofindia.co.in/
 www.ucobank.com/
 www.hdfcbank.com/
 www.pnbindia.in/
 www.iba.org.in/
 www.rbi.org.in/
 www.allahabadbank.com/education.asp
 www.rupeetimes.com
 www.credila.com
 www.studyplaces.com/
Books:
Business research methodology, Naresh Malothra
98 | P a g

Impact of Private Equity in Education Sector

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Impact of Private Equity in Education Sector

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RESEARCH PROJECT REPORT

“IMPACT OF PRIVATE EQUITY IN EDUCATION

Towards partial fulfillment of

Master of Business Administration (MBA)

(BBD University, Lucknow)

Guided By: Submitted by:

Ms. Anushree Srivastava Swapnil Srivastava

Roll No. 1210672280

Babu Banarasi Das University

DATE: B.B.D.U, Lucknow

contribution of different persons fully in radical direction, explicitly or implicitly.

for sparing his valuable time for me on different occasions.

supervision to our project.

take up this challenging task.

1. ABOUT EDUCATION LOAN:

Based on recommendations made by a Study Group, IBA had prepared a Model

3. APPLICABILITY OF THE SCHEME:

4.2 Courses eligible

 Approved courses leading to graduate/ post graduate degree and P G diplomas

(b) Studies abroad:-

9. APPRAISAL / SANCTION/ DISBURSEMENT:

Repayment holiday/Moratorium : Course period + 1 year or 6 months after getting job,

For loans upto - 7.5 laths - upto 10 years

12. FOLLOW UP/MONITORING:

13. PROCESSING CHARGES :

14. CAPABILITY CERTIFICATE:

15. OTHER CONDITIONS:

15.2 Minimum Age

15.3 Top up loans

15.4 Joint Borrower

Disposal of loan application

Education Loan | Student Loan

Special Education Grant

Special Education Financial Aid options:

Criteria for Special-Education Scholarship, Grant, or Loan:

Types of Special-Education Financial Aid Options:

– The American Council on Education’s HEATH Resource Centre Offers Financial

Special Education Loans

Distance Education Loans

Financial Institution Loans – Flexible Loans

Employer Education Loans

Courses eligible for study in India:

Approved courses leading to Graduate/ Posy-Graduate degree and P.G. Diplomas

Courses like ICWA, CA, CFA etc.

Courses conducted by IIMs, IITs/ IISc, XLRI, NIFT, NID etc.

Approved courses offered in India by reputed Foreign Universities.

Courses eligible for Study abroad:

Graduation: For Job oriented professional/technical courses offered by reputed

Post Graduation: MCA, MBA, MS etc.

Courses conducted by CIMA London, CPA in USA etc.

(ii) For Others

(a) Loan upto 4.00 Lacs 10.75%+3.00% =13.75%

(b) Loan above Rs.4.00 Lacs 10.75%+3.00% =13.75%

Studies in India: Maximum Rs. 10.00 lac

Studies abroad: Maximum Rs. 20.00 lac.

Expenses Considered for Loan

Fee payable to College / School /Hostel

Purchase of Books / Equipments/ Instruments/ Uniforms.

Caution Deposit/ Building Fund/ Refundable Deposit supported by Bills/Receipts of the

Travel Expenses/Passage Money for studies abroad.

Purchase of Computers essential for completion of the course at reasonable cost.

Insurance premium for student borrower.