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.



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