SC/ST candidates depend upon PSU banks for education loans

The outstanding education loans to SC/ST candidates at the end of the 2010-11 fiscal stood at Rs 1.58 crore in case of HDFC Bank,Rs 57 lakh in case of ICICI Bank and Rs 37 lakh in case of Axis Bank.

ICICI Bank is the largest private sector bank in the country,while HDFC Bank and Axis Bank are also major lenders with operations throughout the country.

Compared to the private sector lenders,even relatively smaller PSU banks like Indian Bank,Andhra Bank and Syndicate Bank have provided substantial education loans to SC/ST candidates.

The data,which was provided by the Finance Ministry in a written reply in the Rajya Sabha,said the outstanding education loans to SC/ST candidates amounted to Rs 484.56 crore in case of Indian Bank,Rs 146.08 crore in case of Andhra Bank and Rs 109.47 crore in case of Syndicate Bank.

The country’s largest lender,State Bank of India (SBI),however,was not at the forefront of providing education loans to SC/ST candidates. The outstanding exposure of SBI was Rs 238 crore at the end of 2010-11.

The Indian Banks’ Association (IBA),a body that represents public sector,private and foreign banks,had already circulated a Model Education Loan Scheme with a view to encourage financial inclusion.

Under the scheme,Indian nationals who secured admission to professional and technical education in India or abroad through an entrance test and merit-based selection process are eligible for an educational loan.