According to a recent press report the revised education loan scheme implemented on all banks will make disbursal based on the repayment potential of the borrower. The education loans are not going to be offered based on the parental income or family wealth of the borrower which will be the decisive factor.
Reports said that the employability assessment of the candidate and his repayment capacity will be the only factor deciding the loan amount. It also said that the scheme named ‘model education loan scheme’ will bring improved benefits to the meritorious student class in the country. The lenders have planned to come up with some standard tests in order to evaluate the employability of candidates.
Reports also said that banks will fix from time to time the earning potential for various courses, percentage of income to be considered for repayment, and so on in order to keep away from the confusions that may arise on the evaluation process.
The Indian Banks’ Association, on the subject has said that the evaluation will ensure that the decision to sanction an education loan is based on sound commercial logic, besides serving a noble cause.