Current Scenario in Education Loans in India

Education plays a vital role in the development of a Nation. Due to the advent of self-financing colleges, the cost of education became very high. Education loan have been a great assistance to those students who have not been able to pursue professional education due to financial constraints. But loan programmes turned out to be disappointing in terms of repayment status. This study is purely a conceptual study which focuses on the Model Education Scheme introduced by Indian Banker’s Association.RBI instructed banks to implement the Model Educational Scheme to help the deserving students. In this study we can analyze the importance of educational loans, Benefits of educational loans, Issues in getting student loans, Problems faced by beneficiaries while taking education loans. Challenges of banks, Repayment and recovery of education loans. Rise of NPA as a result of non-payment of education loans through a detailed literature survey. Significance of study is also mentioned in this.