Education Spend & Loans
|While short of expectations, India’s public expenditure on higher and technical education is rising. These consolidated figures were revealed by the Human Resources Development (HRD) ministry two weeks ago in Delhi in response to a specific query. The Ministry also added that the public outlay for higher education in the XI Five Year Plan is 9 times that of the X Five Year Plan.|
|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.