Submitted By:

AYON GHOSH
P/MN/R/09/112
SECTION: B

A DISSERTATION REPORT ON
“COMPARATIVE STUDY OF EDUCATION LOAN
WITH REFERENCE TO SBI, PNB AND HSBC”

1
 Certificate from the Guide

This is to certify that the Project Work titled “COMPARATIVE STUDY OF EDUCATION LOAN
WITH REFERENCE TO SBI, PNB AND HSBC” is a bonafide work of Mr. Ayon Ghosh Roll No:
P/MN/R/09/112 Section B carried out in partial fulfillment for the award of PGDBM of ISB&M-
Kolkata under my guidance. This project work is original and not submitted earlier for the award of
any degree / diploma or associate ship of any other Institution.

Place: Kolkata

Date:

Signature

of the Guide:

Name

of the Guide: Professor Asish Mitra

 Declaration by the Student

I, Mr. Ayon Ghosh hereby declare that the Project Work titled “COMPARATIVE STUDY OF
EDUCATION LOAN WITH REFERENCE TO SBI, PNB AND HSBC” is the original work done
by me and submitted to the ISB&M, Kolkata in partial fulfillment of requirements for the award of
Post Graduate Diploma in Business Management in Finance & Marketing is a record of original
work done by me under the supervision of Prof. Asish Mitra

Roll No: P/MN/R/09/112

Section: B

Date:

3
 ACKNOWLEDGEMENT

It has been a great learning experience on this project entitled “Comparative Study of Education
Loan With Reference TO SBI, PNB, and HSBC”.
I would like to thank Prof. Asish Mitra for imparting knowledge and guidance to me in the field of
Finance and also for his able guidance and support through out my project completion.
 Table of Content

Page No.
1. Introduction of Education Loan
6

2. Research Methodology
7

3. SBI Education Loan Scheme

8

4. PNB Education Loan Scheme

10

5. HSBC Education Loan Scheme

13

6. Findings
15

7. Conclusion
16

8. Recommendations
17

9. Appendix

10. Bibliography

5
 INTRODUCTION
Education loans can augment the boundaries of what we can
achieve
Education never ends – it is not said without reason. We are educated all our lives and getting an
education not only is a great achievement but something that gives you the tools to find your own
way in the world. Education is indispensable; little do we realize how much more it can bring to us
in terms of worldly amplifications. Anyone can have propensity and the natural endowment for
education. But one might not have the resources to finance their education. We certainly can’t let
lack of resources impede you from advancing your prospects through education. Then you
accidentally stumble upon the word ‘education loans’. Loans for education – we have never thought
about it as a feasible arrangement. Education loans can open newer panoramas in regard to our
education aspirations.
Education loans are open to all people in all its myriad forms. Education loans can realize our
education plans.
We can strengthen our own future with education loans. An extensive range of student and parent
loans are presented under the category of education loans. There are many types of education loans.
Discerning about the types of education loans will help us in making the accurate decision. The
single largest resource of education loans is federal loan. The two main federal education loan
programs are the Federal Family Education Loan Program and the Federal Direct Loan Program. In
the Federal Family Education Loan Program the bank, credit union or the school is the lender.
While the federal direct loans program, the department of education is the lender.
Private education loans are offered to people so that they can provide financial backup to their
education plans. Private education loans are not endorsed by other government agencies but are
provided by other financial institutions. Private education loans program are optimum for both
undergraduate and graduate studies.
Formal education is requisite for future success. Though this is not a hard and fast rule, but
education certainly helps you in gaining an upper hand. With universities getting expensive by each
day an education loan will certainly give you an incentive to go ahead with your education plans.
Each year while contemplating on your education plans the thought of finances almost invariably
comes in. While working towards you degree, you are constantly plagued about paying for the
education fees, books, and other living expenses. Education loans can provide funding for tuition
fees, board and room, books computer, and even student travel. An education loan can help you
with all these expenses. Education loans are sufficient enough to take care of all these expenses. If
we have been forced to drop your education for any reason, we can still take up our education at
any point of time irrespective of our age and also where we have left our education.
There are no specific eligibility criteria for education loans. Any person who is in need of
sponsorship for education can find an education loan that befits his or her financial necessity.
Loan amount on education loans vary with the kind of education you want to pursue. The
repayment options with education loans will similarly accommodate your personal financial
preferences. We can either repay interest amount while still in school or six months after
graduation. Education loans offer up to ten years for repayments. The refund alternatives on
education loans also include deferment, forbearance and consolidation. The various sites on
education loans can give you innumerable repayment options and monetary remuneration.
Education loans will help you in planning your life after graduation. However, an education loan
like every loan is a huge financial obligation. An education loans is generally the first substantial
loan for most people and therefore the first major expense. Do not be completely dependent on your
education loans for the funding of our complete education. Try to apply for any other financial
sustenance like university grants, scholarships, fellowships, work study programs and assistance
ship and any other form of aid. This will certainly encourage a fluid dispensation of our education
loans. We can start by going to the financial aid office in our school or university. It will provide us
further insight to the kind of education loans, we must apply for. Education is an experience of life.
It is so rewarding in itself that it helps you to manage almost everything in your life.

7
 RESEARCH METHODOLOGY
METHODOLOGY:
In this research I have adopt the Exploratory Research method only for SBI, PNB and HSBC
Education loan schemes for just compare the offer document of these three banks.

DATA SOURCE:
Primary data is taken from various internal documents and circulars issued by the banks from time
to time and Secondary data is taken from different books and financial information published in
newspapers and from the banks websites and other related websites.

SCOPE:
Research scope is only three banks and these three banks are State Bank of India (SBI), Punjab
National Bank (PNB), and Hong-Kong Shanghai Banking Corporation (HSBC).

LIMITATIONS:
There are some limitations in this research; these limitations are as follows –
 Time limitation
 Many banks provide education loan but in this research only three banks are taken for
consideration.
 Expenditure on research
 Some banks are not provided their internal information/circular.
 STATE BANK OF INDIA (SBI) EDUCATION LOAN
SCHEMES

SBI EDUCATION LOAN

A term loan granted to Indian Nationals for pursuing higher education in India or abroad where
admission has been secured.

1. ELIGIBLE COURSES
STUDIES IN INDIA:
 Graduation, Post-graduation including regular technical and professional Degree/Diploma
courses conducted by colleges/universities approved by UGC/ AICTE/IMC/Govt. etc.
 Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT, IIM etc.
 Teacher training/ Nursing courses approved by Central government or the State Government.
 Regular Degree/Diploma Courses like Aeronautical, pilot training, shipping etc. approved by
Director General of Civil Aviation/Shipping.
 Vocational Training and skill development study courses will not be covered under the
Education Loan Scheme, as the scheme is framed to provide bank loans for higher studies.
STUDIES IN ABROAD:

 Graduation/ Post-graduation for job oriented professional/ technical courses offered by

reputed universities

2. EXPENSES CONSIDERED FOR LOAN

 Fees payable to college/school/hostel
 Examination/Library/Laboratory fees
 Purchase of Books/Equipment/Instruments/Uniforms
 Caution Deposit/Building Fund/Refundable Deposit
 Travel Expenses/Passage money for studies abroad
 Purchase of computers considered necessary for completion of course
 Cost of a Two-wheeler up to Rs. 50,000/-
 Any other expenses required to complete the course like study tours, project work etc.

3. AMOUNT OF LOAN
 For studies in India, maximum Rs. 10 lacs.
 Studies abroad, maximum Rs. 20 lacs

4. INTEREST RATE
Base Rate 8.25 % w.e.f. 14.02.2011
SBI Student Loan Scheme
Loan Amount Rate of Interest
For loans upto Rs.4 lacs 3.75% above Base Rate, currently 12.00% p.a.

Above Rs.4 lacs and upto Rs.7.50 lacs 5.25% above Base Rate, currently 13. 50% p.a.

Above Rs.7.50 lacs 4.25% above Base Rate, currently 12.50% p.a.
(0.50% concession in interest for girl student)

9
SBI Scholar Loan Scheme

 2.75% above Base Rate, currently 11.00% p.a. (Irrespective of the loan amount)
(0.50% concession in interest for girl student)

5. PROCESSING FEES
 No processing fee/ upfront charges
 Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the
margin money

6. REPAYMENT TENURE
Repayment will commence one year after completion of course or 6 months after securing a job,
whichever is earlier.

Repayment Period
Place of Study Loan Amount
in Years
In India Rs. 10 lacs 5-7
Abroad Rs. 20 lacs 5-7

Security

Amount Studies In India Studies Abroad

Up to Rs. 4 lacs No Security No Security

Above Rs. 4 lacs to Rs. 7.50

Third Party Guarantee Third Party Guarantee
lacs

Tangible Collateral security of

Above Rs. 7.50 lacs to Rs. 10 Tangible Collateral security for full
suitable value of loan or third party
lacs(India)/ Rs. 15 lacs(Abroad) value of loan
guarantee

Tangible Collateral security for

Rs 15 lacs to Rs. 20 lacs ___
full value of loan

7. MARGIN
For loans up to Rs.4.0 lacs: No Margin
For loans above Rs.4.0 lacs:
 Studies in India: 5%
 Studies Abroad: 15%

8. DOCUMENTATION REQUIRED
 Completed Education Loan Application Form.
 Mark sheets of last qualifying examination
 Proof of admission scholarship, studentship etc.
 Schedule of expenses for the specified course.
 2 passport size photographs
 Borrower's Bank account statement for the last six months
  Income tax assessment order, of last 2 years
 Brief statement of assets and liabilities, of the Co-borrower
 Proof of Income (i.e. Salary slips/ Form 16 etc.)

PUNJAB NATIONAL BANK (PNB) EDUCATION LOAN

SCHEMES
“VIDYA LAKSHYAPURTI – EDUCATION LOAN SCHEME”

1. OBJECTIVE
To provide financial support to deserving / meritorious students for pursuing education in India and
abroad. The Scheme aims at providing financial assistance to meritorious students with an
opportunity including undertaking basic education and to the meritorious students to pursue higher,
professional and technical education.

2. ELIGIBILITY
Courses Eligibility:
STUDIES IN INDIA:
 Graduation courses – B.A., B.Com, B.Sc., etc.
 Post-Graduation courses, Masters & Ph.D.
 Professional courses, Engineering, Medical, Agriculture, Veterinary, Law, Dental,
Management, Computer etc.
 Computer Certificate courses of reputed Institutes accredited to Department of Electronics or
institutes affiliated to University.
 Courses like ICWA, C.A., CFA, etc.
 Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc.
 Regular Diploma/Degree courses conducted by Colleges/Universities approved by
UGC/Govt./AICTE/AIBMS/ICMR.
 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. In case the
course is pursued abroad, the Institute should be recognized by the competent local (abroad)
Aviation/Shipping authority.
 Advance Diploma in Banking Technology offered by PNBIIT, Lucknow.
 Courses offered in India by reputed foreign universities.
 Other courses leading to Diploma/Degree etc. conducted by colleges/universities approved
by UGC/Govt./AITCE/AIBMS/ICMR etc.
 Courses offered by National Institutes and other reputed Private Institutes.
 Diploma courses, Diploma Leading to Degree Courses local as well as abroad and courses
offered by recognized universities of repute through distance learning etc.
STUDIES IN ABROAD:
 Graduation- for job oriented professional/technical courses offered by reputed universities
abroad.
 Post Graduation courses- MCA, MBA, MS, etc. offered by reputed universities abroad.

11
  Courses conducted by CIMA- London, CPA in USA etc.
Students should approach the branch nearest to the place of residence of their parents. Interest is
charged monthly on simple basis during the repayment holiday/moratorium period & concession of
1% in rate of interest is allowed provided the same is serviced regularly during study period. Punjab
National Bank has tied up with Kotak Mahindra Insurance to provide life insurance cover for
Student borrowers.

Student Eligibility:
 Should be an Indian National.
 Secured admission to Professional / Technical courses in India or abroad through Entrance
Test / Merit based Selection process.
Expenses considered for Loan:
 Fee payable to College / School / Hostel
 Examination / Library / Laboratory fee.

 Purchase of books / equipment / 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 fee
for entire course.
 Travel Expenses / Passage money for studies abroad.
 Purchase of computers - essential for completion of the Course.
 Insurance premium for student borrower
 Boarding and lodging expenses in recognized Boarding Houses / private accommodations
 Any other expense required to complete the course - like study tours, project work, thesis etc.

3. QUANTUM OF FINANCE
Need based finance, subject to repaying capacity of the parents / students with margin and
the following ceilings:
 For studies in India: Maximum Rs.10.00 lacs.
 For studies abroad: Maximum Rs.20.00 lacs.

4. MARGIN
Up to Rs. 4.00 lacs: Nil
Above Rs. 4.00 lacs:
 Studies in India 5%
 Studies in Abroad 15%

5. SECURITY
Up to Rs.4.00 lacs: Co-Obligation of Parents. No Security
Above Rs 4.00 lacs and Up to Rs Co-Obligation of Parents together with collateral security in the form of
suitable 3rd party guarantee acceptable to the Bank
7.5 lacs:
Co-Obligation of Parents. Collateral Security of suitable value along
Above Rs 7.5 lacs: with Assignment of future income of the student for payment of
installments

NOTE:
The document should be executed by the student and the parent / guardian.
 The security can be in the form of land / building / Govt. Securities / Public Sector Bonds/
Units of UTI, NSC, KVP, LIC Policy, Gold, Shares /Debentures, Bank Deposit in the
 name of the student parent / guardian or any other third party with suitable Margin.
 Wherever the land / building is already mortgaged, the unencumbered portion can be taken
as security an II charge basis provided it covers the required Loan amount.
 In case the loan is given for purchase of Computer, the same to be hypothecated to the Bank.

6. UPFRONT FEE
 For Study in India – Nil
 For Study abroad - @ 0.50% with a maximum of Rs. 5000/-(refundable on availment of the
loan amount)

7. DOCUMENTATION CHARGES
Up to Rs. 4 lacs Rs.270/- + Service Tax & Education Cess
Above Rs.4 lacs Rs.450/- + Service Tax & Education Cess

8. RATE OF INTEREST
BPLR System Base Rate System
Repayable in less Repayable in 03 Repayable in less Repayable in 03
than 03 yrs. yrs. & above than 03 yrs. yrs. & above
a. Vidyalakshyapurti
i. Loan upto Rs.4 lac BPLR – 0.50% BPLR - 1.00 + TP BR+2.50% BR+2.00%+ TP

ii. Loan over Rs.4 lac BPLR + 0.25% BPLR -0.25% + TP BR+3.25% BR+2.75%+ TP
Sarvottam Shiksha
** (For Existing
A/Cs only)
i. Loan upto Rs.4 lac BPLR – 0.50% BPLR - 1.00% + TP BR+2.50% BR+2.00%+TP

ii. Loan over Rs.4 lac BPLR BPLR -0.50% + TP BR+3.00% BR+2.50%+TP

9. REPAYMENT
Repayment Holiday / Moratorium - Course period + 1 year OR 6 months after getting job, whichever is
earlier.
The Principle and interest is 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.

10. ADDITIONAL BENEFITS PROVIDED TO THE STUDENTS

 A rebate of 0.50% in rate of interest permitted to women beneficiaries for loans up to Rs. 10
lac for studies in India and Rs 20 lac for studies abroad for existing as well as new girl
student borrower’s wef. 08.03.2009.
 Second time Education Loan can be sanctioned to the same student borrower for completion
of next higher course.
 Reimbursement of fee available.

11. CHECK LIST

While applying for the loan, the borrower is required to furnish the following information/papers:
 Loan application on Bank's format.
 Passport size photograph.
 Proof of Address (Permanent) / ID Proof.
13
  Proof of Age.
 Proof of having secured pass marks in last qualifying examination.
 Letter of admission in professional, technical or vocational courses.
 Prospectus of the course wherein charges like Admission Fee, Examination Fee, Hostel
Charges etc. are mentioned.
 Details of Assets & Liabilities of parents.
In case loan amount is above Rs.4.00 lacs:
 Detail of Assets & Liabilities of parents/co-obligants/ guarantors.
 In case loan is to be collaterally secured by mortgage of IP, Copy of Title Deed, Valuation
Certificate and Non Encumbrance Certificate from approved Lawyer of the Bank to be
obtained at the cost of the borrower.
 Photocopy of Passport & Visa, in case of study abroad.
 Any other document/information, depending upon the case and purpose of the loan.

HSBC EDUCATION LOAN SCHEAMES

FEATURES AND BENEFITS

a. Loans up to Rs. 1 crore against Residential property
b. Tenor of up to 15 years Tenor of up to 15 years.
c. Attractive interest rates Attractive interest rates
d. Loan Components Loan Components:
 The tuition fees component can go up to 100% of the total loan amount
 The lodging & boarding component is a maximum of 40% of the total loan amount
 The cost of books & equipment component is a maximum of 10% of the total loan amount
The estimate for boarding, lodging expenses and also the cost of books and equipment needs to be
confirmed by the concerned school.
e. Margin Money Margin Money:
 HSBC India can fund a maximum of 85% of the total programme fees
 Upfront contribution proof of the remaining 15% of school fees must be submitted to HSBC,
India prior to the disbursal
f. Currency:
 The loan is disbursed in Indian rupees (INR) from where the funds are forwarded to the
concerned school in U.S. dollars
 The applicant / co-applicant must repay the loan in Indian Rupees (INR)
g. Fees & Charges:
h. Processing fees:
 1% of the loan amount applied for, subject to a minimum of Rs 5000 plus service tax. This
fee is payable on application and is not refundable
 Additional fees, as charged by GSLC apply. (If applicable)
o A one-time administration fee of 1.75% of the principal amount plus service tax (at
10.30%, totally 1.93%) shall be collected by HSBC and payable to GSLC
o An upfront non-refundable site usage fee of $75 is payable to GSLC via Credit Card or
PayPal through the GSLC website
i. Pre-payment charges Pre-payment charges:
 No pre-payment charge up to a maximum of 25% of the outstanding loan, once every
financial year (April-March)
 A pre-payment charge of 4% shall be levied for the amount in excess of 25% of the
outstanding loan amount
 Loan prepayment can be done only after six months from the disbursal date

LOAN AVAILABILITY
Educational loans are available for studies in India or abroad. Avail of loan amounts ranging from a
minimum of Rs. 50,000 to a maximum of Rs. 25, 00,000.

SMOOTH REPAYMENT
 Our Equated Monthly Installments (EMIs) scheme allows for easy repayment and saves you
from hassles.
15
  Flexibility: Our loans are tailor-made to your needs. Opt for tenures up to 4 years for
unsecured loans and 7 years for secured loans (against security of a residential property /
shares).

COMPREHENSIVE COVERAGE
 Educational loan also covers expenses for boarding and lodging.
 HSBC banking benefits: Take advantage of HSBC's banking benefits; let us help you open a
Savings account or avail of a debit card.

LOW INTEREST RATES

Bank offer us competitive interest rates on our educational loans. Bank also gives us the option of
choosing between a fixed or floating rate of interest (the floating rate option is available only in
case of secured loans).

SPECIAL RELATIONSHIP DISCOUNTS

We are also eligible for special discounts exclusively designed for HSBC customers (of 6 months
or more).
 Loans above Rs.500, 000 are available against security of residential property/shares. Loans
to value ratio to be less than or equal to 50% of the property valuation.
 Loans available for study at select institutes, based on their accreditation.
 The interest rate on our floating rate Home loan is linked to HSBC's Mortgage Lending Rate
(MLR) and any revision in the MLR would impact our interest rate. The MLR is currently
9.5%.

ELIGIBILITY
To qualify for an Educational Loan, the following criteria apply:
Net Income (Rs.) of Primary Applicant / co-applicant
Minimum Age (in years) of Primary Applicant / co-
applicant
Maximum Age (in years) of Primary Applicant / co-
applicant
Rs.5, 00,000 per year for Salaried.
Rs. 7, 50,000 per year for Self employed.
18
58 or retirement age (whichever is earlier) for
salaried at loan maturity.
65 for self-employed.
60 or retirement age (whichever is earlier) for
PSU/government salaried employees, at loan
maturity.

Minimum Loan Amount (Rs.) 500,000

Maximum Loan Amount (Rs.) 10,000,000

65% upto education loan of INR 5 M,
Loan to Value Ratio 55% for education loan between INR 5-10 M
Residential Property. Either self-occupied or owned
Collateral by either primary or co-applicant.
Property must be in Bangalore, Chennai, Mumbai,
Location Delhi (NCR – Noida, Gurgaon, Faridabad), Pune.

Primary Applicant Must be the student.

Co-Applicant Must have a co-applicant in India and can only be
parents or spouse of student. Co-applicant being
considered when calculating the loan eligibility must
be a resident Indian.

17
 FINDINGS

Sl. No. Parameters Private Banks Public Banks

Economically affluent sections of Economically weaker sections
1. Beneficiaries also
society

2. Objective Commercial National and social

3. Aimed At Profit Earning Not profit alone

4. Margin Money Must Flexible

5. Security Necessary Less Important

6. Interest Rate High Reasonable

7. Attitude Rigid and strict Flexible and liberal

Sl. No. Basis of Difference PNB SBI HSBC

Min. Rs.
Max. loan for studies
1. Rs. 7.50 Lacs Rs. 10.00 Lacs 50,000 to a Max.
in India
of Rs. 25.00lacs
Max. loan for Not Available
2. Rs. 15.00 Lacs Rs. 20.00 Lacs
studies in Abroad
Upto Rs.4.00 lacs Upto Rs. 4 lakh
9.5% p.a +10%
PTLR 10.50% p.a.
3. Interest Rates service tax + 2%
Above Rs.4.00 lacs Above Rs. 4 lakh
education cess
PTLR + 1% 11.50% p.a.
One year after One year after completion of
Repayment
completion of course or course or 6 months after
4. Period starts N.A.
6 months after securing a securing a job, whichever is
from
job, whichever is earlier. earlier.
In India: Up to Rs.
Up to 4 years for
7.5 lacs - 5-7 years
unsecured loans
Above Rs. 7.5 lacs -5-
To be repaid in 5-7 and 7 years for
10 years
years after secured loans
5. Repayment Period In Abroad: Up to Rs.
commencement of (against security
15 lacs – 5-7 years
repayment of a residential
Above Rs. 15 lacs – 5-
property /
10 years
shares).
Upto Rs. 4.00 lacs Upto Rs. 4.00 lacs
: Nil : Nil
Above Rs. 4.00 lacs: Above Rs. 4.00 lacs:
6. Margin N.A.
Studies in India Studies in India
5% Studies in Abroad 5% Studies in
15% Abroad 15%
No processing
fee/upfront charges
Deposit of Rs. 5000/-
No processing N.A.
7. Processing Fees for education loan for
fee/upfront charges
studies abroad which
will be adjusted in the
margin money
Security Upto Rs. 4.00 Upto Rs. 4.00 lacs : No
lacs : No Security Security
Above Rs. 4.00 lacs : Above Rs. 4.00 lacs to Rs.
Collateral Security of 7.50 lacs :Third Party
8. Security Suitable value Guarantee N.A.
(equivalent to 100% Above Rs. 7.50 lacs to
of the amount of loan) or Rs. 10 lacs (India): Tangible
co-obligation of parents/ Collateral security for full
guardian / third party. value of loan.
 CONCLUSION
On the basis of above findings and comparison among SBI, PNB and HSBC it is clearly observe
that public banks have more reach, variety and flexibility in their education loan schemes whereas
private banks uses some new concepts in their offerings like tailor made repayment system.
 Maximum loan for studies in India is ranging from Rs. 7.50 lacs to 10.00 lacs and for studies
in Abroad it is Rs. 15-20 lacs by public banks and in the case of private banks, they provide
minimum Rs. 50,000 to a maximum of Rs. 25 lacs. Interest rates vary from 9.5% to 11.5%
p.a. and PNB uses PTLR system.
 All banks have same repayment facility i.e. one year after completion of course or 6 months
after securing a job, whichever is earlier.
 Repayment period is also vary from 5-7 year after commencement of repayment in the case
of education loan is taken from public banks and it is 4-7 years on the basis of unsecured and
secured education loan taken from private banks.
 Margin is same in PNB and SBI i.e.
Up to Rs. 4.00 lacs: Nil
Above Rs. 4.00 lacs: Studies in India 5%
Studies in Abroad 15%
 PNB and SBI do not charge any processing fees but SBI takes Deposit of Rs. 5000/- for
education loan for studies abroad this will be adjusted in the margin money.

19
 RECOMMENDATIONS

 Banks should go for advertisement Campaign from Scratch.

 Banks should try to cash its brand image.

 Strong branch network should be made and staff personnel’s incentives should be increased.

 Banks should increase its product line in education loans.

 Special scheme for non-professional students as well as for professional students should be
increased.