Education Loans Most Popular in Southern States of India: Report
Close to 8.9 lakh students were granted education loans by banks in 2017-18. The most surprising fact in this regard is that 5.8 lakh students out of 8.9 lakh who acquired education loan are from Southern states.
The number of education loans granted to students across the country went up by 32% in 2017-18, after a drastic fall of 13% in 2016-17. In all, close to 8.9 lakh students were granted education loans by banks in 2017-18. The most surprising fact in this regard is that 5.8 lakh students out of 8.9 lakh who acquired education loan are from southern states, i.e., Kerala, Andhra Pradesh, Tamil Nadu, Kerala and Telangana. Maharashtra is also one among the states where more students took education loan.
The six states as mentioned above disbursed Rs. 8,891 crore towards education loan. For the past four years, these six states are dominating in terms of education loans.
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Banks provide education loans to students who wish to take up higher studies. Indian Banks’ Association (IBA) had laid down guidelines for providing the education loans. These guidelines were revised in 2015. As per the revised guidelines, banks provide education loan with an option for repayment period of up to 15 years.
State-Wise No. of Students Acquired Education Loans 2017-18:
Here is the detailed information about the state-wise number of students acquired education loans: -
Name of the State | No. of Students Acquired Education Loans | Total Amount |
Tamil Nadu | 1,88,700 | Rs. 1,932.82 Crore |
Kerala | 1,21,573 | Rs. 1,379.23 Crore |
Karnataka | 1,08,460 | Rs. 1,798.65 Crore |
Maharashtra | 89,064 | Rs. 1,633.53 Crore |
Andhra Pradesh | 49,894 | Rs. 1,174.23 Crore |
Telangana | 31,315 | Rs. 973.32 Crore |
Rest of India | 3,09,584 | Rs. 5,842.89 Crore |
Total | 8,98,545 | Rs. 14,734.67 Crore |
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Among the banks, State Bank of India (SBI) topped the list by providing education loans to 3.2 lakh students. Canara Bank bagged the second spot by providing loans to 98,400 students. Almost, all the Public Sector Banks (PSBs) while private banks offered educational loans only to a few students.
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