Press Information Bureau

Government of India

Ministry of Finance

22-May-2012 19:32 IST

The India Banks’ Association (IBA) had circulated a Model Educational Loan Scheme for implementation to its member banks with broad operational guidelines. Banks may adopt the scheme with discretion to make changes as deemed fit.

The scheme is for all Indian Nationals who have secured admission to professional/technical courses in India or abroad through an entrance test/merit based selection process.

As per the scheme, the assessment of the educational loan is based on the employability and earning potential of the student upon completion of the course.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

DSM/Hb

Educational loan eligibility emphasises entrance based admission and assessment tied to employability and earning potential for Indian nationals. A model educational loan scheme circulated by the India Banks' Association allows member banks to adopt or modify it; eligibility covers Indian nationals admitted to professional or technical courses in India or abroad through entrance or merit selection. Loan assessment is to be based on post qualification prospects, emphasizing employability and earning potential to inform banks' credit appraisal and sanctioning decisions.