Description
Fee structure of premium institute is high., Poor infrastructure and under qualified faculty., Bad loans, Pressure from government & regional political parties
Case Study on Bad Study Loans
Find More Slide Like This At: www.freembanotes.in
? Scheme was launched in 2001-2002 by Finance
Minister “Yashwant Sinha”
? Modified by P.Chidambaram in 2004-2005.
? Proportion increased from 0.5% to 1.17%.
? Banks started focusing on education loan in 2005.
? Revision of education loan norms.
HISTORY
SUMMARY
?Fee structure of premium institute is high.
?Poor infrastructure and under qualified
faculty.
?Bad loans.
?Pressure from government & regional
political parties.
?Loan repayment commitments are reduced
due to unemployment.
In the seven years ended March banks education
loan portfolio expanded at a compounded annual
growth rate of 35% compared with industry loan
growth rate of 23% in banking system.
NORMS A SERIOUS PROBLEM
NORMS CONTD.
• SBI is India’s top lender with having largest share of
educational loans or 28% of the outstanding portfolio.
Banks are under continuous pressure from the government
and regional political parties to extend loans even to those
students who secure admission under so called
management quota up to 4 lakh banks can’t demand any
security of loans. It is difficult to recover money in case a
student fails to payback as there is no collateral against
such loans.
NORMS CONTD.
• Banks have to properly judge the borrower and
institutions before giving loans as because now a
days there are fake institutions as well targeting
student loans and that is failure of credit appraisal
system of banks.
• Fee structure
• Poor infrastructure and under qualified faculties
of institutions
• Unemployment
• Fake institutes
• Pressure given by regional political parties and
from the government.
CONCLUSION & RECOMMENDATION
? Improving the quality of those colleges
? Regulatory body to check the quality of the
colleges
? Bank may set up their own special team to check
the validity of the institution
? Revision of Govt. policy regarding education loan
? Set up of special financial body for education loan
? Promotion of Education Loans
THANK YOU
doc_569618444.pptx
Fee structure of premium institute is high., Poor infrastructure and under qualified faculty., Bad loans, Pressure from government & regional political parties
Case Study on Bad Study Loans
Find More Slide Like This At: www.freembanotes.in
? Scheme was launched in 2001-2002 by Finance
Minister “Yashwant Sinha”
? Modified by P.Chidambaram in 2004-2005.
? Proportion increased from 0.5% to 1.17%.
? Banks started focusing on education loan in 2005.
? Revision of education loan norms.
HISTORY
SUMMARY
?Fee structure of premium institute is high.
?Poor infrastructure and under qualified
faculty.
?Bad loans.
?Pressure from government & regional
political parties.
?Loan repayment commitments are reduced
due to unemployment.
In the seven years ended March banks education
loan portfolio expanded at a compounded annual
growth rate of 35% compared with industry loan
growth rate of 23% in banking system.
NORMS A SERIOUS PROBLEM
NORMS CONTD.
• SBI is India’s top lender with having largest share of
educational loans or 28% of the outstanding portfolio.
Banks are under continuous pressure from the government
and regional political parties to extend loans even to those
students who secure admission under so called
management quota up to 4 lakh banks can’t demand any
security of loans. It is difficult to recover money in case a
student fails to payback as there is no collateral against
such loans.
NORMS CONTD.
• Banks have to properly judge the borrower and
institutions before giving loans as because now a
days there are fake institutions as well targeting
student loans and that is failure of credit appraisal
system of banks.
• Fee structure
• Poor infrastructure and under qualified faculties
of institutions
• Unemployment
• Fake institutes
• Pressure given by regional political parties and
from the government.
CONCLUSION & RECOMMENDATION
? Improving the quality of those colleges
? Regulatory body to check the quality of the
colleges
? Bank may set up their own special team to check
the validity of the institution
? Revision of Govt. policy regarding education loan
? Set up of special financial body for education loan
? Promotion of Education Loans
THANK YOU
doc_569618444.pptx