Gujarat has seen a sharp fall in the education loan disbursal to a big 42% in the FY 2009-10. But there is a 12% increase in the number of bank accounts implying more students are opting for loans for higher studies. So the fall can be credited to the reducing number of students opting for loans for going overseas for higher studies.
In the year 2008-09, the loan disbursal amounted to Rs 581.62 crore, but the number fell down to Rs 332.37 crore in the next year, to go down to Rs249.25 crore in absolute figures.
As per P Nandakumaran, chief general manager, State Bank of India(SBI), “It seems the demand for education loans is coming more from students joining the not so-premium institutions”.
SBI’s education loan book has fallen the highest than all other banks in Gujarat.
MK Jain, SLBC convener and GM, Dena Bank said, “The maximum amount given by banks as education loan is Rs20 lakh. The number of students applying for this maximum amount has gone down.”