|But education loans which could fund some of the higher education more easily are moving slowly, for various banking and non-banking reasons. The Indian Bank’s Association (IBA) has circulated a revised Model Educational Loan Scheme to its member banks with broad operational guidelines.
The Government quoted IBA figures to say that Public Sector Banks has sanctioned Rs 15,207 crore ($3.3 bn) education loans in 5.42 lakh accounts during the year ended 31st March, 2011. The amount actually disbursed was Rs 11,200 crore ($2.5 bn) in 8.11 Lakh accounts during the year. India’s central bank, the Reserve Bank also received 99 complaints relating to grant of educational loans against various banks. It’s not clear why there is a reverse discrepancy between loans sanctioned and disbursed though a detailed report from IndiaSpend will follow soon.