Education
is central to the human resources development and empowerment in any country
and knowledge and information would be the driving force for economic growth.
The current rate of economic growth of the country demands technically and
professionally trained man power in large numbers. Though government intends to
provide education to all through public funding, it is not feasible in view
budgetary constraints. At the same time the cost of education has been going up
in recent times and it has become financial burden to the parents of the
students. Hence, there is a clear case for institutional funding in this area.
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.
Eligibility
Criteria: The
student should be an Indian National and should have secured admission to a
higher education course in recognized institutions in India or Abroad through
Entrance Test/Merit Based Selection process. 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
programs. In such cases, banks will have to adopt appropriate criteria based on
employability and reputation of the institution concerned.
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 documents for the loan, the bank will obtain a letter of ratification from him/her upon attaining majority.
