Education Loan Project

Swami Ramanand Teerth Marathwada University, Nanded School Of Commerce & Management Sciences

A

SPECIALISATION REPORT On

Education loans Under the subject of

Business Entrepreneurship Submitted By

Vaishali.V.Koner R.No. 30 MBA 2nd yr.{4th SEM}

SUBMITTED TO

SCHOOL OF COMMERCE AND MANAGEMENT SCIENCES UNDER GUIDANCE OF

Dr. Mrs. V.N.LATURKAR

Academic yr :- 2011-2012

CERTIFICATE

This is to certify that Vaishali.V.Koner has submitted a project report on SMALL-SCALE INDUSTRIES OF “ PAPER BAGS ” And

has been successfully completed the project in MBA.lll semister of School of Commerce And Management Sciences under Sawami Ramanand Teerth Maratwada , University and in this volume she has submitted a satisfactory report about it, during the academic year 2011-2012.

(Project Guide) Dr. Mrs. M.S. Deshpande Mam

Academic yr :- 2011-2012

CERTIFICATE

This is to certify that Vaishali.V.Koner has submitted a project report on SMALL-SCALE INDUSTRIES OF “ PAPER BAGS ” And

has been successfully completed the project in MBA.lll semister of School of Commerce And Management Sciences under Sawami Ramanand Teerth Maratwada , University and in this volume she has submitted a satisfactory report about it, during the academic year 2011-2012.

(Project Guide) Dr. Mrs. M.S. Deshpande Mam

ACKNOWLEDGEMENT This is golden opportunity for me to express my deep & sincere thanks to everybody who gave me their support and guidance for my project of “Paper Bags”

I am highly greatful to my guide Dr. Mrs. V.N.LATURKAR mam for being there throughout and extending her kind help and encouragement for developing a project that can be believed in. I am also thankful to our head of the department Dr. Biradar sir for his constant support and co-operation. And of course I sincerely thanks to all my friends and relatives who have directly or indirectly been a source of inspiration to me to prepare this project.

Signature

Vaishali .V.Koner

COMPARITIVE STUDY BETWEEN EDUCATIONAL LOANS PROVIDED BY PRIVATE & PUBLIC SECTOR BANKS

INTRODUCTION :-

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, higher education is progressively moving into the domain of private sector. With a gradual reduction in government subsidies higher education is getting more and more costly and hence the need for institutional funding in this area. An education loan is a loan taken to help pay for an education, usually at a college or trade school,, but may also be used to pay for private schools or prep schools as well Students school prefer education loan for pursing higher education. Also education loan is free from tax.The education loan is available in several different types.These are student loans, parent loans and private loans. Loans are also either guaranteed or unguaranteed. Student and parent loans are most likely to be guaranteed by the government, though many agencies work for the government in this respect. Unguaranteed or unsubsidized loans are usually from private lenders only, and usually can only be obtained if one has a good credit score or significant equity. The scope of education has widened both in India and abroad covering new courses in diversified areas. Development of human capital is a national priority and it should be the endeavour of all that no deserving student is denied opportunity to pursue higher education for want of financial support. Loans for education should be seen as an investment for economic development and prosperity. Knowledge and information would be the driving force for economic growth in the coming years. 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 vide 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 Hon'ble Finance Minister in his Budget Speech for the year 2004-05, IBA had communicated certain changes in the security norms applicable to educational loans with limits above Rs.4 lakhs and up to Rs. 7.5 lakhs. The different types of student loans are offered, these are:-

s Undergraduate student loans-

It is a type of unsecured loan offered by TheLoanBazaar.com to be used for education-related expenses. In case you are not currently earning while studying or do not meet our policies for eligibility criteria, you may need a suitable cosigner, like a parent, friend or any relative or eligible adult. This type of undergraduate student loan includes your Tuition, previous school fee, living expenses, books and other expenses like transportation costs. While the funds are sent directly to the student, TheLoanBazaar.com also offers competitive interest rates and flexible repayment terms, wherein the repayment can also begin after graduation. With quick

application process and easy to fill up application form, getting could not get any simpler. Graduate/professionalstudents -

Graduate/ professional student loans are basically suitable for students who higher or advanced degrees at nationwide colleges.These are the type of unsecured loans offered by TheLoanBazaar.com to be used for education-related expenses. In case you are not currently earning while studying or do not meet our policies for eligibility criteria, you may need a suitable cosigner, like a parent, friend or any relative or eligible adult. While the funds are sent directly to the student, TheLoanBazaar.com also offers competitive interest rates and flexible repayment terms, wherein the repayment can also begin after graduation. With quick application process and easy to fill up application form, getting could not get any simpler. Careereducationloans -

Career education loans are basically available for students who are attending the undergraduate career oriented programs at nationwide colleges and technical and trading schools. These are the type of unsecured loans offered by TheLoanBazaar.com to be used for education-related expenses. In case you are not currently earning while studying or do not meet our policies for eligibility criteria, you may need a suitable co signer, like a parent, friend or any relative or eligible adult. While the funds are sent directly to the student, TheLoanBazaar.com also offers competitive interest rates and flexible repayment terms, wherein the repayment can also begin after graduation. With quick application process and easy to fill up application form, getting could not get any simpler. Collegeparentsloans-

It is a type of unsecured loan offered by TheLoanBazaar.com to be used for education-related expenses. In case your child is currently studying and now working alongside, you can take up the loan by being a co signer. This type of loan can help you assist your child with any kind of undergraduate/graduate or career education plan in college. And what’s more, you do not even have to keep collateral and do not have to

sell away your homes, investments money for the school and college fee of your child. This type of undergraduate student loan includes your Tuition, previous school fee, living expenses, books and other expenses like transportation costs. With quick application process and easy to fill up application form, getting could not get an y simpler. K 12 Parents loans-

It is a type of unsecured loan offered by TheLoanBazaar.com to be used for education-related expenses. It is basically available to parents and other adult relatives for their children who are attending nonpublic, private, religious, military elementary and secondary schools countrywide. This type of K 12 Parents loans include your child’s tuition fee, uniforms, previous school fee, living expenses, books and other expenses like transportation costs. With quick application process and easy to fill up application form, getting could not get an y simpler. While the funds are sent directly to you, TheLoanBazaar.com also offers competitive interest rates and flexible repayment terms, wherein the repayment of principal and interest begins 30-60 days after the loan is laid out.

REVISED MODEL EDUCATIONAL LOAN SCHEME FOR PURSUING HIGHER STUDIES IN INDIA AND ABROAD 1. OBJECTIVES OF THE SCHEME :-

The Educational Loan Scheme outlined below aims at providing financial support from the banking system to deserving/ meritorious students for pursuing higher education in India and abroad. The main emphasis is that every 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. No deserving student is denied an opportunity to pursue higher education for want of financial support. 2. APPLICABILITY OF THE SCHEME:-

The scheme detailed below could be adopted by all Commercial Banks. The scheme provides broad guidelines to the banks for operationalising the educational loan scheme and the implementing bank will have the discretion to make changes suiting to the convenience of the students/ parents to make it more customer friendly.

The scheme details are as under : 3.ELIGIBILITY CRITERIA :Student eligibility:-

Should be an Indian National Secured admission to professional/ technical courses in India or Abroad through Entrance Test/ Merit Based Selection process.

Courses eligible :a. Studies in India: (Indicative list) 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.

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. Courses offered in India by reputed foreign universities. Other courses leading to diploma/ degree etc. conducted by colleges/ universities approved by UGC/ Govt./ AICTE/ AIBMS/ ICMR etc Courses, which are not covered under the criteria mentioned above, individual banks may take a view to consider extending education loan under the scheme taking into account the future prospects/recognition by user institution.

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. 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 Institution bills/receipts, subject to the condition that the 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. Insurance premium for student borrower

Any other expense required to complete the course - like study tours, project work, thesis, etc.

4. 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 lacs 5. MARGIN :-

Upto Rs 4 lacs

Nil

Above Rs. 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

made on a pro-rata basis. 6. SECURITY :-

Upto Rs 4 Co-obligation lacs Above Rs.4 lacs and upto Rs7.5 lakhs

of

parents.

No security Co-obligation of parents together with collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, waive third

disbursements

are

party guarantee if satisfied with the networth / means of parent/s who would be executing the document as "joint borrower". Co-obligation of parents together with Above

tangible collateral security of suitable value,

Rs.7.5 lakhs along with the assignment of future income of the student for payment of instalments

The loan documents should be executed by both the student and the parent/ guardian as jointborrower. The security can be in the form of land/ building/ Govt. securities/ Public Sector Bonds/Units of UTI, NSC, KVP, life policy, gold, shares/mutual fund units/debentures, bank deposit in the name of student/ parent/ guardian or an y other third party with suitable margin. Wherever the land/ building is already mortgaged, the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount. In case the loan is given for purchase of computer, the computer has to be hypothecated to the Bank. 7. RATE OF INTEREST :-

Upto Rs 4 lacs

BPLR

Above Rs. 4 lacs BPLR + 1%

Simple interest to be charged during the Repayment holiday/ Moratorium period. Penal interest to be charged as applicable to individual banks.

8. APPRAISAL / SANCTION/ DISBURSEMENT : -

In the normal course, while appraising the loan the future income prospects of the student will be looked into. However, where required, the means of parent / guardian could also be taken into account to evaluate re-payment capability. The loan to be sanctioned as per delegation of powers preferably by the Branch nearest to the place of residence of parents.

No application for educational loan received should be rejected without the

concurrence of the next higher authority. The loan to be disbursed in stages as per the requirement/ demand directly to the Institutions/ Vendors of books/ equipments/ instruments to the extent possible. 9. REPAYMENT:-

Repayment

Course period + 1 year or 6 months after getting job, whichever is

holiday/Moratorium

earlier.

The loan to be repaid in 5-7 years after commencement of repayment. 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. 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 for loanees if the interest is serviced during the study period when repayment holiday is specified for interest/ repayment under the scheme. 10. INSURANCE:-

Banks may arrange for life insurance policy on the students availing Educational Loan. Individual Banks may work out the modalities with insurance companies

11. FOLLOW UP/TRACKING:-

Banks to contact college/ university authorities to send the progress report to the bank at regular intervals in respect of students who have availed loans. In case of studies abroad, bank may obtain the Unique Identification Number (UIN)/Identity Card and note the same in th e bank's records. 12. PROCESSING CHARGES:-

No processing/ upfront charges may be collected on educational loans for studies in India. 13. 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.

14. OTHER CONDITIONS:-

a.Meritorious Students Banks which wish to support highly and exceptionally meritorious/ deserving students without security may delegate such powers to a fairly higher level authority. b. Multiple Loans In case of receipt of application for more than one loan for student borrower from a family, the 'family' as a unit has to be taken into account for considering the loan and security taken in relation to the total quantum of finance disbursed, subject to margin and repaying capacity of the parent/student.

c. Minimum Age There is no specific restriction with regard to the age of the student to be eligible for education loan. d. Change of Address In cases of student staying with parents and where such parents have transferable jobs or there is change in address, the bank may provide in the system of noting the ‘address for correspondence' for

tracking purpose.

e. Top up loans Banks may consider top up loans to students pursuing further studies within the overall eligibility limit, with appropriate re-schedulement, subject to taking requ ired security. f. Co-obligator The co-obligator should be parent(s)/guardian of the student borrower. In case of married person, coobligator can be either spouse or the parent(s)/parents-in-law . No Due Certificate No due certificate need not be insisted upon as a pre-condition for considering educational loan. However, banks may obtain a declaration/ an affidavit confirming that no loans are availed from other banks. Disposal Application Loan applications have to be disposed of 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. Flexibility in terms In order to bring flexibility in terms like eligibility, margin, security norms, banks may consider relaxation in the norms on a case-to-case basis delegating the powers to a fairly higher level authority.

‘Government of India,Ministry of Human Resource Developmen t Department of Higher Education'

Central

Scheme

to

provide

Interest

Subsidy

for

the

period

of

moratorium

onEducational

Loans taken by students from economically weaker sections fromscheduled b:mks under the Educational Loan Scheme of the Indian Banks'Association to pursue technicaJLprofessionaleducation studies in India. One of the major concerns of the 'Government is to ensure that nobody is Qenied professional education because he or she is poor. TI1e Indian Banks'Association (lBA) had formulated a comprehensive model.educational loan scheme for adoption by all Banks, aimed at providing financial support from the bankingsystem to deserving/meritoriousstudents for pursuing higher education in India and. abroad. Government of India has now approved a Scheme to provide full interestsubsidy during the period of moratorium on loans taken by students belonging toeconomically weaker sections from scheduled banks under the Educational LoanScheme of the IndianBanks' Association, for pursuing any of the approved courses ofstudies in technicaland professional streams,from recognized institutions in India.

The broad parameters of the Scheme are :-

(i) The Schedule would be only applicable for studies in technical courses in India. The: interest subsidy shall be linked with the existing Educationa Loan Scheme of IBA and restricte:d to students enrolled in recognized professional courses (after ClassXII) in India in Educational Institutions established by Acts of Parliament, other Institutions recognized by the concerned Statutory Bodies, Indian Institutes of Management (IIMs) and other institutions set up by the Central Government. (ii) Under the Scheme,interest payable by the student ,availingof the Educational Loan Scheme of the Indian Banks Association for professional courses for the period of moratorium (i.e.. course period, plus one year or six months after getting job,whichever is earlier)as prescribed under the Educational Loan Scheme of the Indian Banks Association, shall be borne by the Government. After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing Educational Loan Scheme and as may be amended from time to time.

iii) The benefits under the Scheme would be applicable to those students belonging to economically weaker sections with an annual parental income upper limit of Rs. 4.5 lakh per year. (iv) The- interest subsidy under the Scheme shall be available to the eligible students only once, either for the first undergraduate degree course or the postgraduate degrees/diplomas. Interest subsidy shall, however be admissible for combined undergraduate and post graduate courses. (viii) The Scheme shall be implemented through Canara Bank, which is the nodal bank for the Ministry of Human Resource Development. Modalities for implementation and monitoring mechanism shall be finalized in consultation with the Canara Bank. (ix) The Scheme shall be applicable from the academic year 2009-10.

REASONS FOR TAKING EDUCATION LOANS:-

For most, the steep fees for professional courses are becoming unaffordable as a result of which, more and more students are knocking on the doors of banks to pay for their education. Data prepared by the Indian Banks' Association (IBA) shows that the number of students applying for loans has more than doubled between 2005 and 2010. The outstanding amount has also gone up from Rs 6,713.16 crore till 2005 to Rs 40,497.46 crore till 2011. The IBA data, compiled annually from the records of all the 28 nationalized banks in the country, shows that 1.48 lakh applications were received in 2004-05, while the numbers went up to Rs 3.25 lakh in 2009-10. The total outstanding accounts in 2005 was 4,68,207 that rose to 19,28,350 in 2010. The corresponding outstanding loan amount went up from Rs 6,713.16 crore in 2005 to Rs 35,628.33 crore in 2010. The reasons for the surge in applications, bankers say, are the rising fees, easy availability of loans and low interest rates. "The cost of professional education has gone up and loans are easily available to students. Banks have also become proactive in marketing their products; they have started combing campuses as they know they will find their borrowers there," said Prabhuta Vyas, vicepresident of the social banking department of IBA. Since banks provide loans up to Rs 4 lakh without any collateral, "around 67% seeks loan of that amount", she said. According to students, smooth process, low interest rates, few paperwork and reputation of a bank are what they seek when they apply for loans. Shiv Shetty, a PG student in marketing communications at the University of Westminster, UK, took loan through a nationalized bank. However, non-computerization of the process had complicated his application to the university, he claimed.

Which Banks in India Offer Education Loans? Most nationalized banks, private banks, foreign banks and private lending institutions provide students loans. Some of the loans from the most popular banks are as follows:

Axis Bank Study Loan Allahabad Bank Loan

Bank of India Loan Bank of Maharashtra Loan Bank of Baroda Loan Bank of Rajasthan Loan Canara Bank Student Loans Federal Bank Vidya Loan IDBI Bank Education Loans HDFC Education Loan UCO Bank Education Loan ICICI Bank Education Loan Punjab National Bank Loan Syndicate Bank Loans Indian Overseas Bank Loan Oriental Bank of Commerce State Bank of India Loan United Bank of India Loans

Documents required for availing the loan are: Mark sheet of last qualifying examination. Schedule of expenses for the course Offer letter or any other proof of admission to the course. Copies of letter confirming scholarships. Borrower’s last 6 months’ statement of bank account. List and statement of borrower’s assets and liabilities

How much Loan Can You Get? For studying in India a student can borrow up to 4 lakh (INR) without providing any margin or security. A loan amount above this and up to 7.5 lakh (INR) is available against a third-party guarantee,

which comes with a 5% margin. For studying outside the country, loan amounts above 7 lakh (INR) is sanctioned against NSC certificates, fixed deposits, property, and so on, against a loan margin of 15%. An education or student loan means financial support given by a bank or a financial institute to help a student meet the expenses needed for higher education. Many colleges, universities and other educational institutions have tied up with private and nationalized banks to help the students achieve their dreams. For studying in any institute within the country, the maximum loan amount granted is 7.5 lakh (INR) and for studying abroad, the maximum loan amount granted is 15 lakh (INR). In India, if a student is under 18 years of age, an education loan is granted to the parents. Loans are also granted through third-party guarantee, who can be a relative, friend or neighbor. Students, above 18 years of age get loans to meet their professional or academic education costs. Compared to other types of loans, education loans in India come with lower interest rates. Sometimes, the loans are supplemented by student grants, which in general cases do not have to be repaid. Most nationalized and private lending institutions in India need authorization from the respective college or university. These education loans generally include the costs of tuition fee, hostel expense, and books & stationery costs.

Procedure :-

Step 1: Fill in the loan application form

Like in case of every loan, the applicant has to fill in an application form which may ask for details such as contact details, details relating to academics etc. it is important to fill in accurate information.

Step 2: Personal Discussion

Once the applicant, ie the student fills in the form, there is a round of personal discussion wherein he/she may be asked various question relating to the academic performance, the course one has selected, probably the institute etc. At this stage, it is very important to be lucid and clear about one's selection of course and its future potential of generating income. While some banks are known to hold the academic record important, some may give it a slightly lesser attention. This does not go to say that one needs an excellent academic record. But, make sure that there are answers to those mishaps that could have occurred during the academic life.

Step 3: Provide validated supporting documents

Unlike other loans where the talk of documents relating to say property, might come in at a later stage and may cause delay-documents are a must. In case of education loans, documents relating to admissions are mandatory even before the bank considers the loan application. The bank will verify the enrollment of the student from the concerned institute. One may also require collateral security such as papers relating to property to be mortgaged if the loan amount is above Rs. 4 lakh.

Step 4: Stage of loan approval or denial

When one takes some other kind of loan, there is a co-guarantor, especially in case of personal and home loans. For an education loan, a guarantor is mandatory. The guarantor could be an applicant's parents or guardians. The bank will run a thorough check of the guarantor and his/her credit history before sanctioning the loan. After completion of the process, the loan may be sanctioned or denied.

Step 5: Borrower's signature on a Promissory Note

While the parents/guardians are guarantors, the student is the actual borrower of the loan. Once the loan is sanctioned, the student has to sign a promissory note to the bank.

Step 6: Disbursal of the loan

Once the formalities are completed (additional documents and signed post-dated cheques may be required), the bank will disburse the loan. The bank may disburse the college/institute fee directly to the concerned institute.

Online Applications In the current times, availing an education loan has been made even easier. Now, one can apply for an education loan online. The loan will be sanctioned only in principal and the applicant will have to contact the bank for actual approval and disbursement of the education loan.

Securities required for loan :-

You need to have a guarantor for the education loanto be sanctioned. If you fail or are incapable of repaying the student loan, the guarantor will have to clear the debt. Usually, most banks require the guarantor to have a net worth and/ or annual income equivalent or more than the education loan amount. Only education loans above Rs 4 lakh require tangible collateral, security for the full value of the loan or third-party guarantee, depending on the amount. However, the co-borrower -- the parent or guardian - is required to furnish his/her bank account statement, tax returns of the last two years, statement of assets and liabilities and proofofincome. The usual security that banks accept are National Savings Certificates (NSCs), bonds, gold, vehicle,house,property,etc. Loans above Rs 4 lakh and up to Rs 7.5 lakh: Collateral in the form of a suitable third-party guarantee. The bank may, at its discretion, waive third-party guarantee if satisfied with the net worth / means of the parent who is executing the document as a joint borrower. Loans above Rs 7.5 lakh: Collateral security of a suitable value or a suitable third-party guarantee, along with the assignment of the student's future income for payment of installments. When the education loan amount is greater than Rs 1 lakh, banks usually prefer students who have life insurance policies equivalent to, or more than, the education loan amount. This is nothing more than a security feature and also forms part of your collateral. If something unfortunate happens to the borrower,the bank does not lose money and can recover the outstanding amount from the insurance policy. Some banks have tied up with specific institutions to provide education loans to students for select courses. In such cases, the banks may be willing to forgo collateral requirements.

COMPARITIVE STUDY PUBLIC SECTOR BANKS:-

Banks choosen for comparison

BETWEEN EDUCATION LOANS GIVEN BY PRIVATE AND

BANKS

PUBLIC BANKS

PRIVATE BANKS

STATE BANK OF HYDERABAD

ICICI BANK

UNION BANK OF INDIA

HDFC BANK

State bank of Hyderabad :Purpose -

For pursuing studies in recognised schools/ colleges/ institutions to meet: - Tution and other fees

- Maintenance costs, books and equipment etc.

- Cost of passage (for studies abroad)

Eligibility-

For School / College education in India.

a) Minimum second division (Pass marks for SC/ST)

b) Parents / guardians (Including persons engaged in agriculture / allied activities having independent regular source of income.

Loan Amount -

(I) School / College education in India: (Upto 6 times the monthly net (take home) income of the parents / guardian. Minimum loan of Rs. 4,000/- Maximum Rs. 1lac.

(ii) Technical / Professional higher studies in India and Abroad 90% of the cost of study, subject to maximum of Rs. 8lacs.

Margin-10% Interest Rate -

At competitive rates on reducing balance only. Please check-up for latest rates at your nearest branch Interest is compounded at quarterly basis. Period of Loan (I)

For School / College Education in India: Loans to be repaid in a period of 36months, commencing immediately after disbursal, by the parents / guardian.

(II)

For Technical / Professional higher studies in India and abroad: The loan is to be repaid is 60 months after the completion of the course of securing job, whichever is earlier. Regular periodic repayment as much as possible should be made during the period of study. Quarterly interest should be paid regularly.

(III)

Permitted without any penalty.

DETAILS OF LOAN GIVEN IN LAST YEAR -

1.Total number of educational loans provided this year:- 6 2.Total number of proposals handled :- 53 3.Total amount sanctioned :- 90 lacs. 4.NPA’s in education loans :-Nil

5.Schemes detail :-

Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course) Travel Expenses/Passage money for studies abroad Purchase of computers considered necessary for completion of course Any other expenses required to co mplete the course like study tours, project work etc.

6.Balance sheet :-

Period Ending

29-Sep-2011

29-Sep-2010

29-Sep-2009

59,494

54,447

Assets Current Assets Cash And Cash Equivalents

63,481

Short Term Investments

-

Net Receivables

124,061

107,438

83,290

Inventory

665,246

604,357

559,689

-

-

Other Current Assets

26,360

23,486

18,492

Total Current Assets

879,148

794,775

715,918

Long Term Investments

-

-

-

Property Plant and Equipment

182,489

168,119

151,252

Goodwill

505,873

478,240

494,135

Intangible Assets

129,658

109,352

78,685

Accumulated Amortization

-

-

-

Other Assets

31,432

38,926

50,742

Deferred Long Term Asset Charges

-

-

-

Total Assets

1,728,600

1,589,412

1,490,732

Accounts Payable

457,002

404,607

349,668

Short/Current Long Term Debt

3,004

3,045

24,517

Liabilities Current Liabilities

Other Current Liabilities

Total Current Liabilities

-

460,006

Long Term Debt Other Liabilities

1,410,111 26,154

-

-

407,652

374,185

1,559,591

1,653,013

40,692

43,586

Deferred

Long

Term

Liability

51,311

41,803

33,599

Minority Interest

-

-

-

Negative Goodwill

-

-

-

Total Liabilities

1,947,582

2,049,738

2,104,383

Misc Stocks Options Warrants

-

946

1,800

Redeemable Preferred Stock

-

-

-

-

-

Charges

Stockholders' Equity

-

Preferred Stock

Common Stock

1,841

1,822

1,819

Retained Earnings

(879,305)

(1,093,030)

(1,236,858)

Treasury Stock

(103)

(103)

(33)

Capital Surplus

681,256

650,315

635,519

Other Stockholder Equity

(22,671)

(20,276)

(15,898)

Total Stockholder Equity

(218,982)

(461,272)

(615,451)

Net Tangible Assets

(854,513)

(1,048,864)

(1,188,271)

Currency in USD.

7.Recently provided loans:-

UNION BANK OF INDIA:PURPOSE:-

Basic education To pursue graduation / higher education To pursue technical / professional / management courses

ELIGIBILITY -

Indian citizen Secured admission to the concerned institute in India or abroad through appropriate selection process and cleared the ualifying examination, if any Courses covered in India Graduation / post-graduation / diploma courses from recongnized universities Technical / professional / management courses Courses covered outside India

Graduation / post-graduation degrees offered by recongnized universities Certified degree courses conducted by CIMA, London, CPA, USA and other such institutes Diploma courses are not covered under Union Education

QUANTUM OF LOAN -

For studies in India - maximum upto Rs. 10 Lakhs. The quantum of loan is higher for the institutes covered under Special Education Loan schemes. Please check the Special Offers Tab above for further details. For studies outside India- maximum Up to Rs. 20 Lakhs

MARGIN -

For loans upto Rs. 4 Lakhs, the margin is nil For loans above Rs. 4 Lakhs, margin is 5% for studies in India and 15% for studies outside India

MORATORIUM PERIOD-

The moratorium period is minimum of the following two. Course period + 1 year Course period + 6 months after commencement of job

REPAYMENT-

Repayment period of up to 7 years after moratorium period

Interest rate -

SECURITY -

The security required is as mentioned below. Loan amount

Security

Upto Rs. 4 Lakhs Rs. 4 – 7.5 Lakhs

Above Rs. 7.5

NIL 

No collateral security required



Third party guarantee is needed



Collateral security of suitable value is

Lakhs

required

GUARANTEE-

Parent / guardian of the student who is availing loan have to join in as co-borrower

INSURANCE-

Life insurance of the borrower is compulsory to the tune of the loan amount

OTHER CONDITIONS-

The loan shall be sanctioned / disbursed from the branch nearest to the place of domicile of the student Loan would be disbursed directly to the institute

DETAILS OF LOAN GIVEN IN LAST YEAR-

1.Total number of educational loans provided this year:- 12 2.Total number of proposals handled :- 12

3.Total amount sanctioned :- 24,33,687/4.NPA’s in education loans :-All new loans

5.Schemes detail :-

6.Balance Sheet :-

------------------- in Rs. Cr. ------------------Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

524.33

505.12

505.12

505.12

505.12

Equity Share Capital

524.33

505.12

505.12

505.12

505.12

Share Application Money

111.00

0.00

0.00

0.00

0.00

Preference Share Capital

0.00

0.00

0.00

0.00

0.00

Reserves

10,555.35 8,302.69

6,549.26

5,118.19

4,228.16

Revaluation Reserves

1,573.84

1,685.98

1,724.40

456.59

Net Worth

12,764.52 10,423.78

8,740.36

7,347.71

5,189.87

Deposits

202,461.29 170,039.74

138,702.83

103,858.65

85,180.22

Capital and Liabilities:

1,615.97

Borrowings

13,315.97 9,215.31

3,884.90

4,760.49

4,215.53

Total Debt

215,777.26 179,255.05

142,587.73

108,619.14

89,395.75

Other Liabilities & Provisions

7,442.67

9,647.43

8,106.43

8,092.26

Total Liabilities

235,984.45 195,161.84

160,975.52

124,073.28

102,677.88

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

5,483.01

Assets Cash & Balances with RBI

17,610.45 12,468.24

8,992.05

9,454.74

5,917.57

Balance with Banks, Money at Call

2,487.99

6,992.88

643.10

2,508.87

Advances

150,986.08 119,315.30

96,534.23

74,348.29

62,386.43

Investments

58,399.14 54,403.53

42,996.96

33,822.63

27,981.77

Gross Block

3,598.41

3,396.98

3,220.65

2,937.45

1,487.21

Accumulated Depreciation

1,319.21

1,101.50

893.35

741.62

664.49

Net Block

2,279.20

2,295.48

2,327.30

2,195.83

822.72

Capital Work In Progress

13.58

9.96

7.86

4.57

2.28

Other Assets

4,208.00

3,360.89

3,124.23

3,604.10

3,058.24

Total Assets

235,984.44 195,161.85

160,975.51

124,073.26

102,677.88

3,308.45

Contingent Liabilities

148,033.99 63,675.91

63,248.00

47,413.13

32,894.26

Bills for collection

16,652.20 13,227.35

22,391.95

18,280.70

10,537.72

Book Value (Rs)

211.31

139.66

111.33

93.71

174.37

7.Recently provided loans:Name-

Shailrendra Baliram Jallewar

Address- Jai Bhawani Nagar,Purna Road near Hanuman temple,h.no.115,Nanded. Mob.no-9860987012.

HDFC BANK Purpose:-

HDFC gives loans to students to partly meet their educational expenses / costs for pursuing specific higher educational courses at institutes approved by HDFC. Loans are given to students who are citizens of India. The student should have a consistently good academic record, and admission to an approved Educational Institute for pursuing a recognized course. Eligibility:-

Students enrolled with an approved Educational Institute and desirous of availing the education loan can make an application, with the earning parent / guardian being the co-applicant to the loan. Currently, new entrants and existing students of only select leading national educational institutions are eligible to apply for education loans. Please check with your nearest HDFC Office for the list of approved institutions. Amount of loan:-

Loans can be availed upto a maximum of 90% of the total cost as determined by HDFC. The costs would generally cover expenses incurred towards the course fee, library charges, hostel and mess charges, cost of books and equipment. HDFC lends upto a maximum of Rs. 2,00,000 on an Education Loan. The period of the loan is determined on the merits of each case but would not exceed 5 years. The repayment can be accelerated on completion of the course, considering the earning capacity of the student. HDFC's main concern is to help individuals comfortably repay the borrowed amount.

Rate of interest :-

Loan Amount (Rs.)

Rate of Interest - % p.a.

Upto 2,00,000

14.0

1.Total number of educational loans provided this year:- No loans given for domestic purposes. 2.Total number of proposals handled :-nil 3.Total amount sanctioned :- nil. 4.NPA’s in education loans :-nil

5.Schemes detail :Interest Subsidy for Educational Loans In order to support students from economically weaker sections of the society, Department of Education, Ministry of Human Resource Development, Government of India has launched an interest subsidy scheme. The MoHRD has appointed Canara Bank as the Nodal Bank for the Scheme. Only for Educational Loans availed from Scheduled Banks for pursuing any of the approved courses after Class XII in technical and professional streams from recognised institutes** in India

under

the

Educational

Loan

Scheme

of

IBA.

Educational Institutions established by Acts of Parliament, other institutions recognized by the concerned Statutory Bodies, Indian Institute of Management (IIMs), and other institutions set up by the Central / State Government. Students belonging to economically weaker sections with annual gross parental / family income from all sources with an upper limit of Rs 4.50 Lakh. Certificate to this effect issued by authorised officers of State Government is to be submitted.

Interest Subsidy Documents :Original income certificate from the competent authority under the scheme. Interest Subsidy Agreement. Original bonafide student letter issued by the institute. Stamp Duty / Franking Charges. Additional Interest Subsidy Details required Eligibility for subsidy as per Central Sector Scheme by MoHRD Disbursement of interest subsidy at the sole discretion of MoHRD.

6.Balance sheet :-

Balance Sheet of HDFC Bank

------------------- in Rs. Cr. ------------------Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

465.23

457.74

425.38

354.43

319.39


465.23

457.74

425.38

354.43

319.39


0.00

0.00

400.92

0.00

0.00


0.00

0.00

0.00

0.00

0.00

Reserves

24,914.04 21,064.75

14,226.43

11,142.80

6,113.76


0.00

0.00

0.00

0.00

Net Worth

25,379.27 21,522.49

15,052.73

11,497.23

6,433.15

Deposits

208,586.41 167,404.44

142,811.58

100,768.60

68,297.94

Borrowings

14,394.06 12,915.69

2,685.84

4,478.86

2,815.39

Total Debt

222,980.47 180,320.13

145,497.42

105,247.46

71,113.33


28,992.86 20,615.94

22,720.62

16,431.91

13,689.13

Total Liabilities

277,352.60 222,458.56

183,270.77

133,176.60

91,235.61


0.00

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths


25,100.82 15,483.28

13,527.21

12,553.18

5,182.48


4,568.02

3,979.41

2,225.16

3,971.40

Advances

159,982.67 125,830.59

98,883.05

63,426.90

46,944.78

Investments

70,929.37 58,607.62

58,817.55

49,393.54

30,564.80

Gross Block

5,244.21

4,707.97

3,956.63

2,386.99

1,917.56


3,073.56

2,585.16

2,249.90

1,211.86

950.89

Net Block

2,170.65

2,122.81

1,706.73

1,175.13

966.67


0.00

0.00

0.00

0.00

0.00

Other Assets

14,601.08 5,955.15

6,356.83

4,402.69

3,605.48

Total Assets

277,352.61 222,458.56

183,270.78

133,176.60

91,235.61


559,681.87 466,236.24

396,594.31

582,835.94

202,126.73


28,869.10 20,940.13

17,939.62

17,092.85

7,211.88

Book Value (Rs)

545.53

344.44

324.38

201.42

14,459.11

470.19

7.Recently provided loans:-No Loans Given.

ICICI BANK

EducationLoan 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. CoursesEligible

StudiesinIndia: 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 DegreeorDiplomaCourse.

StudieSabroad: 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 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 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, coobligator can be either spouse or the parent(s)/parents-in-law

Rate of Interest:-

loans upto Rs 4 lacs shall be IBAR ( not exceeding BPLR) for loans above Rs. 4 lakhs shall be BPLR + 1% At least 0.50% concession in interest rates on Education Loans to girl students for pursuing higher education in India and abroad Penalty 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.

DETAILS OF LOAN GIVEN IN LAST YEAR1.Total number of educational loans provided this year:-No loans given for domestic purposes. 2.Total number of proposals handled :- nil 3.Total amount sanctioned :- nil. 4.NPA’s in education loans

5.Schemes detail :-

:-nil.

6.Balance Sheet :-

Balance Sheet of ICICI Bank

------------------- in Rs. Cr. ------------------Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital

1,151.82

1,114.89

1,463.29

1,462.68

1,249.34


1,151.82

1,114.89

1,113.29

1,112.68

899.34


0.29

0.00

0.00

0.00

0.00


0.00

0.00

350.00

350.00

350.00

Reserves

53,938.82 50,503.48

48,419.73

45,357.53

23,413.92


0.00

0.00

0.00

0.00

Net Worth

55,090.93 51,618.37

49,883.02

46,820.21

24,663.26

Deposits

225,602.11 202,016.60

218,347.82

244,431.05

230,510.19

Borrowings

109,554.28 94,263.57

67,323.69

65,648.43

51,256.03


0.00

Total Debt

335,156.39 296,280.17

285,671.51

310,079.48

281,766.22


15,986.35 15,501.18

43,746.43

42,895.39

38,228.64

Total Liabilities

406,233.67 363,399.72

379,300.96

399,795.08

344,658.12

Mar '11

Mar '10

Mar '09

Mar '08

Mar '07

12 mths

12 mths

12 mths

12 mths

12 mths


20,906.97 27,514.29

17,536.33

29,377.53

18,706.88


13,183.11 11,359.40

12,430.23

8,663.60

18,414.45

Advances

216,365.90 181,205.60

218,310.85

225,616.08

195,865.60

Investments

134,685.96 120,892.80

103,058.31

111,454.34

91,257.84

Gross Block

9,107.47

7,114.12

7,443.71

7,036.00

6,298.56


4,363.21

3,901.43

3,642.09

2,927.11

2,375.14

Net Block

4,744.26

3,212.69

3,801.62

4,108.89

3,923.42


0.00

0.00

0.00

0.00

189.66

Other Assets

16,347.47 19,214.93

24,163.62

20,574.63

16,300.26

Total Assets

406,233.67 363,399.71

379,300.96

399,795.07

344,658.11


883,774.77 694,948.84

803,991.92

371,737.36

177,054.18


47,864.06 38,597.36

36,678.71

29,377.55

22,717.23

Book Value (Rs)

478.31

444.94

417.64

270.37

463.01

7.Recently provided loans:-No loans given.

ARTICLE

Chart of the Day: Student Loans Have Grown 511% Since 1999 AUG 18,2011

You think the housing bubble was enormous? Meet the education bubble.An article here by Andrew Hacker and Claudia Dreifus explained the debt crisis at American colleges. But some startling statistics will help to make their analysis a little more tangible. The growth in student loans over the past decade has been truly staggering. Here's a chart based on New York Federal Reserve data for household debt. The red line shows the cumulative growth in student loans since 1999. The blue line shows the growth of all other household debt except for student loans over the same period.

This chart looks like a mistake, but it's correct. Student loan debt has grown by 511% over this period. In the first quarter of 1999, just $90 billion in student loans were outstanding. As of the second quarter of 2011, that balance had ballooned to $550 billion. The chart above is striking for another reason. See that blue line for all other debt but student loans? This wasn't just any average period in history for household debt. This period included the inflation of a housing bubble so gigantic that it caused the financial sector to collapse and led to the worst recession since the Great Depression. But that other debt growth? It's dwarfed by student loan growth. How does the housing bubble debt compare? If you add together mortgages and revolving home equity, then from the first quarter of 1999 to when housing-related debt peaked in the third quarter of 2008, the sum increased from $3.28 trillion to $9.98 trillion. Over this period, housing-related debt had increased threefold. Meanwhile, over the entire period shown on the chart, the balance of student loans grew by more than 6x. The growth of student loans has been twice as steep -- and it's showing no signs of slowing.*

Education Loan Project

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