State level banker’s committee (SLBC) secretariat reported that a significant raise in people applying for education loan is noticed. It is expected that SLBC will excel with greater number of education loans this year. Last year SLBC sanctioned 8,872 student loans worth Rs 361 crore, and this fiscal year it will be more than this. Though there is a rise in education loan but much is needed to be done to aware people regarding education loan. Generally the demand of education loan increases when the academic sessions of the students begin.
People are unaware about the norms of the education loan. Loan up to 4 lakh can be taken without any security from the bank, for loan up to 7.5 lakh and above a security is needed. Banks provide with a sum of 10 lakh as a loan amount for studying in India and 20 lakh for abroad. And further government provides complete support to the families having low income. Government will pay the interest on loan subsidy till the student is studying.