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PROJECT REPORT

ON

COMPARATIVE ANALYSIS THE STUDY OF

EDUCATION LOAN SCHEMES

OF

PUBLIC SECTOR BANKS

Submitted in partial fulfillment of the requirements of

Master of Business Administration Programme

(Session -2010-12)

Submitted To: Submitted by-:

Mr. Rohit Bansal Sakshi Grover(Lecturer in MBA Deptt.) MBA- 4rd SEM

Roll No- 46

VAISH COLLEGE OF ENGINEERING, ROHTAK

Affiliated to Maharishi Dayanand University, Rohtak


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DECLARATION

I ,Sakshi Grover Roll no-46 of class MBA 1Vsemester of VAISH COLLEGE OFENGINEERING,ROHTAK hereby declare the project entitled COMPARATIVE

ANALYSIS THE STUDY OF EDUCATION LOAN SCHEME OF PUBLIC SECTOR

BANKS is an original work and same has not been submitted to any other institution for

awards of any other degree partially or wholly. The interim report was presented to

supervisor on ---------- and pre submission presentation was made on ----------. Feasible

suggestions have been duly incorporated with supervisor.

(Counter singed) (Signature Candidate)

Signature of supervisor

Forward By

Director / Principal of Institute

ACKNOWLEDGEMENT


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I deem it my proud privilege to express my indebtedness and sincere thanks to all those who have, in

various ways, helped me in the successful completion of the project and without their invaluable help

this project would not have been a reality.

I am also extremely thankful to_________________ who was constant source ofknowledge and inspiration at all levels throughout. I am also thankful to my friends for their great

support during my project.

Finally I express my most sincere gratitude to my parents and my family members for supporting and

encouraging me to this challenging project. I deeply acknowledge the support and inspiration

provided by my academic career.

CONTENTS

TITLE Page No.


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1. Introduction

(a)About Education loan(b)About PNB Bank and SBI Bank(c) About PNB Bank and SBI Bank in education loan

2. Review of Literature

3. Research Methodology

i) Significanceii) Objective of the projectiii)Research Methodologyiv)Limitations

4. Data Analysis & Interpretation

5. General findings

i) Suggestionsii) Conclusion

Bibliography

Annexure

INTRODUCTION

Education loans can augment the boundaries of what we canachieve

Education never endsit is not said without reason. We are educated all our lives and gettingan education not only is a great achievement but something that gives you the tools to find


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your own way in the world. Education is indispensable; little do we realize how much more itcan bring to us in t erms of worl dly amplifi cations. Anyone can have propensity andthe natural endowment for education. But one might not have the resources to financetheir education. We certainly cant let l a c k o f r e s o u r c e s i m p e d e y o u f r o mad van cin g yo ur pr osp ec ts th ro ug h ed uc at io n . T he n yo u accidentally stumble

upon the word education loans. Loans for education we have never thought about it as afeasible arrangement. Education loans can open newer panoramas in regard toour education aspirations. Education loans are open to all people in all its myriadforms. Education loans can realize our education plans. We can strengthen our ownfuture with education loans. An extensive range of student and parent loans are presentedunder the category of education loans. There are many types of education loans. Discerningabout the types of education loans will help us in making the accurate decision.

The single largest resource of education loans is federalloan. The two main fed eral edu cat ion loan programs are the Federal Family EducationLoan Program and the Federal Direct Loan Program. In the Federal Family Education

Loan Program the bank, credit union or the school is the lender .While the federaldirect loans program, the department of education is the lender. Private education loansare offered to people so that they can provide financial backup totheir education plans. Private education loans are not endorsed by othergovernment agencies but are provided by other financial institutions. Privateeducation loans program are optimum for both under graduate and graduate studies.F o r m a l e d u c a t i o n i s r e q u i s i t e f o r f u t u r e s u c c e s s . T h o u g h t h i s i s n o t ah a r d a n d f a s t r u l e , b u t education certainly helps you in gaining an upper hand. Withuniversities getting expensive by each day an education loan will certainly give you anincentive to go ahead with your education plans.

Each year while contemplating on your education plans the thought offinances almost invariably comes in. While working towards you degree, you areconstantly plagued about paying for the education fees, books, and other livingexpenses. Education loans can provide funding for tuition fees, board and room, bookscomputer, and even student travel. An education loan can help you with all theseexpenses. Education loans are sufficient enough to take care of all these expenses. If wehave been forced to drop your education for any reason, we can still take up oureducation at any point of time irrespective of our age and also where we have left oureducation. T her e a re no spe c i f i c e l ig ib i l i t y c r i t e r i a fo r edu ca t ion loan s .A n y p e r s o n w h o i s i n n e e d o f sponsorship for education can find an education loanthat befits his or her financial necessity. Loan amount on education loans vary

w i th the k ind o f educa t ion you w ant to pur sue . T here payment op t ionswith education loans will similarly accommodate your personal financialp r e f e r e n c e s . W e c a n e i t h e r r e p a y i n t e r e s t a m o u n t w h i l e s t i l l i n s c h o o lor si x mo n th s af te r graduation. Education loans offer up to ten years forrepayments. The refund alternatives one education loans also includedeferment, forbearance and consolidation.

WHERE EDUCATION LOAN HELP IN OUR LIFE

The various sites one education loans can give you innumerable repayment options andmonetary remuneration. Education loans will help you in planning your life after graduation.

However, an education loan like every loan is a huge financial obligation. An education loansis generally the first substantial loan for most people and therefore the first major expense.


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Do not be completely dependent on your education loans for the funding of ourcomplete education. Try to apply for any other financial sustenance like universitygrants, scholarships, fellowships, work study programs and assistance ship and any otherform of aid. This will certainly encourage a fluid dispensation of our education loans. We canstart by going to the financial aid office in our school or university. It will provide us further

insight to the kind of education loans, we must apply for. Education is an experience of life. Itis so rewarding in itself that it helps you to manage almost everything in your life.

ABOUT PNB BANK

Punjab National Bank (PNB) is one of India's largest nationalized banks, with some 5,000locations. The financial institution offers services in personal and corporate banking,including industrial, agricultural, and export finance, as well as international banking. Itspersonal lending services include loans for housing, autos, and education. PNB's diverseclient list includes Indian conglomerates, small and midsized businesses, non-residentIndians, and multinational companies. The bank was established in Lahore in 1895 -- morethan 50 years before the country was partitioned into India and Pakistan in 1947.

HISTORY

Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act withits office in Antalkali BazaarLahore. The founding board was drawn from different parts ofIndia professing different faiths and a varied back-ground with, however, the common

objective of providing country with a truly national bank which would further the economicinterest of the country. PNB's founders included several leaders of the Swadeshimovement
http://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Swadeshihttp://en.wikipedia.org/wiki/Lahore


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such asDyal Singh Majithiaand Lala HarKishen LaLala Lalchand, Shri Kali Prosanna Roy,Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. LalaLajpat Raiwas actively associated with the management of the Bank in its early years. Theboard first met on 23 May 1894. Today, ironically the PNB Website is distorting history byclaiming Lala Lajpat Rai to be the founding father, surpassing Rai Mul Raj and Dyal Singh

Majithia.

PNB has the distinction of being the first Indian bank to have been started solely with Indiancapital that has survived to the present. (The first entirely Indian bank, the Oudh CommercialBank, was established in 1881 inFaizabad, but failed in 1958.)

PNB has had the privilege of maintaining accounts of national leaders such as MahatmaGandhi, ShriJawahar Lal Nehru, ShriLal Bahadur Shastri, ShrimatiIndira Gandhi, as well asthe account of the famousJalianwala BaghCommittee.

TIMELINE:

1895: PNB commenced its operations inLahore. 1904: PNB established branches inKarachiandPeshawar. 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located inDelhiCircle. 1947: At the Partition of India and the commencement of Pakistani independence,

PNB lost its premises in Lahore, but continued to operate in Pakistan. PNB hadalready shifted its registered office from Lahore to Delhi in June 1947 even beforethe announcement of the Partition.

1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank becameBharat Nidhi Ltd.

1961: PNB acquired Universal Bank of India.

1963: The Government ofBurmanationalized PNB's branch inRangoon (Yangon). September 1965: After the Indo-Pak war the government of Pakistan seized all the

offices in Pakistan of Indian banks. PNB also had one or more branches in EastPakistan(Bangladesh).

1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue. 1969: The Government of India (GOI) nationalized PNB and 13 other major

commercial banks, on 19 July 1969. 1976 or 1978: PNB opened a branch inLondon. 1986 TheReserve Bank of Indiarequired PNB to transfer its London branch toState

Bank of Indiaafter the branch was involved in a fraud scandal.

1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. Theacquisition added Hindustan's 142 branches to PNB's network.

1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980. 1998: PNB set up a representative office inAlmaty,Kazakhstan. 2003: PNB took over Nedungadi Bank, the oldest private sector bank inKerala. At

the time of the merger with PNB, Nedungadi Bank's shares had zero value, with theresult that its shareholders received no payment for their shares.

PNB also opened a representative office inLondon.

2004: PNB established a branch inKabul,Afghanistan.PNB also opened a representative office inShanghai.
http://en.wikipedia.org/wiki/Dyal_Singh_Majithiahttp://en.wikipedia.org/wiki/Dyal_Singh_Majithiahttp://en.wikipedia.org/wiki/Dyal_Singh_Majithiahttp://en.wikipedia.org/wiki/Lala_Lajpat_Raihttp://en.wikipedia.org/wiki/Lala_Lajpat_Raihttp://en.wikipedia.org/wiki/Lala_Lajpat_Raihttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Jawahar_Lal_Nehruhttp://en.wikipedia.org/wiki/Jawahar_Lal_Nehruhttp://en.wikipedia.org/wiki/Jawahar_Lal_Nehruhttp://en.wikipedia.org/wiki/Lal_Bahadur_Shastrihttp://en.wikipedia.org/wiki/Lal_Bahadur_Shastrihttp://en.wikipedia.org/wiki/Lal_Bahadur_Shastrihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Jalianwala_Baghhttp://en.wikipedia.org/wiki/Jalianwala_Baghhttp://en.wikipedia.org/wiki/Jalianwala_Baghhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Peshawarhttp://en.wikipedia.org/wiki/Peshawarhttp://en.wikipedia.org/wiki/Peshawarhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Partition_of_Indiahttp://en.wikipedia.org/wiki/Partition_of_Indiahttp://en.wikipedia.org/wiki/Burmahttp://en.wikipedia.org/wiki/Burmahttp://en.wikipedia.org/wiki/Burmahttp://en.wikipedia.org/wiki/Yangonhttp://en.wikipedia.org/wiki/Yangonhttp://en.wikipedia.org/wiki/Yangonhttp://en.wikipedia.org/wiki/Yangonhttp://en.wikipedia.org/wiki/Yangonhttp://en.wikipedia.org/wiki/History_of_the_Kashmir_conflicthttp://en.wikipedia.org/wiki/History_of_the_Kashmir_conflicthttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/Kazakhstanhttp://en.wikipedia.org/wiki/Kazakhstanhttp://en.wikipedia.org/wiki/Kazakhstanhttp://en.wikipedia.org/wiki/Nedungadi_Bankhttp://en.wikipedia.org/wiki/Nedungadi_Bankhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Afghanistanhttp://en.wikipedia.org/wiki/Afghanistanhttp://en.wikipedia.org/wiki/Afghanistanhttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Afghanistanhttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Nedungadi_Bankhttp://en.wikipedia.org/wiki/Kazakhstanhttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/East_Pakistanhttp://en.wikipedia.org/wiki/History_of_the_Kashmir_conflicthttp://en.wikipedia.org/wiki/Yangonhttp://en.wikipedia.org/wiki/Yangonhttp://en.wikipedia.org/wiki/Burmahttp://en.wikipedia.org/wiki/Partition_of_Indiahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Peshawarhttp://en.wikipedia.org/wiki/Karachihttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Jalianwala_Baghhttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Lal_Bahadur_Shastrihttp://en.wikipedia.org/wiki/Jawahar_Lal_Nehruhttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Lala_Lajpat_Raihttp://en.wikipedia.org/wiki/Lala_Lajpat_Raihttp://en.wikipedia.org/wiki/Dyal_Singh_Majithia


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PNB established an alliance with Everest Bank in Nepal that permits migrants totransfer funds easily between India and Everest Bank's 12 branches in Nepal.

2005: PNB opened a representative office inDubai. 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK,

with two offices, one in London, and one in South Hall. Since then it has opened athird branch in Leicester, and is planning a fourth in Birmingham.

2008: PNB opened a branch in Hong Kong. 2009: PNB opened a representative office in Oslo, Norway, and a second branch in

Hong Kong, this inKowloon. 2010: PNB received permission to upgrade its representative office in the Dubai

International Financial Centreto a branch.

ABOUT EDUCATION LOAN IN PNB BANK

The Scheme enables all type of needy students viz., students of +2 stage, Graduation coursesB.A., B.Com., B.Sc., etc., Post-Graduation courses, Masters in Ph.D; Professional courses,Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc.,Computer Certificate courses of reputed Institutes accredited to Department of Electronics orinstitutes affiliated to University; Courses like ICWA, C.A., CFA, etc., courses conducted byIIM, IIT, IISc, XLRI, NIFT, etc., Evening Courses of reputed Institutes; Diploma/Degreecourses conducted by Colleges/Universities approved by UGC/Govt./AICTE/AIBMS/ICMR,etc., Courses offered by National Institutes and other reputed Private Institutes.

Punjab National Bank is now offering concession in interest in education Loan Scheme. Theconcession in interest rates is available to new borrowers who will avail education loan fromthe bank w.e.f. 01.04.2007.

The bank has taken this step to make education loan scheme more customer friendly thusfacilitating aspirant students to avail education loan on comfortable & affordable terms. .

Further, Interest is charged monthly on simple basis during the repaymentholiday/moratoriumperiod & concession of 1% in rate of interest is also allowed provided the

same is serviced regularly during study period. Punjab National Bank has tied up with KotakMahindra Insurance to provide life insurance cover for education loan borrowers.
http://en.wikipedia.org/w/index.php?title=Everest_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Everest_Bank&action=edit&redlink=1http://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Kowloonhttp://en.wikipedia.org/wiki/Kowloonhttp://en.wikipedia.org/wiki/Kowloonhttp://en.wikipedia.org/wiki/Dubai_International_Financial_Centrehttp://en.wikipedia.org/wiki/Dubai_International_Financial_Centrehttp://en.wikipedia.org/wiki/Dubai_International_Financial_Centrehttp://en.wikipedia.org/wiki/Dubai_International_Financial_Centrehttp://en.wikipedia.org/wiki/Dubai_International_Financial_Centrehttp://en.wikipedia.org/wiki/Kowloonhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/w/index.php?title=Everest_Bank&action=edit&redlink=1


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The insurance would cover study period as well as repayment period, he said, adding in caseof any mishap, the insurance company would take care of the loan repayment rather than theaggrieved parents.

ELIGIBILITY:

1. Student eligibility:Should be an Indian National.

Secured admission to Professional / Technical courses through Entrance Test /Selection process.

Secured admission to foreign University / Institutions.

Student should have secured pass marks in the qualifying Examination for admission toGraduation Courses.

2. Expenses considered for Loan:Fee payable to College / School / HostelExamination / Library / Laboratory fee.

Purchase of books / equipments / instruments / uniforms. Secured admission to

foreign University / Institutions.

Caution Deposit / Building Fund / Refundable Deposit supported by Institution Bills /Receipts.

Travel Expenses / Passage money for studies abroad.

Purchase of computers - essential for completion of the Course.

Boarding and lodging expenses in recognised Boarding Houses / privateaccomondations

Any other expense required to complete the course - like study tours, project work,thesis, etc.

3. Quantum of FinanceNeed based finance, subject to repaying capacity of the parents / students with

margin and the following ceilings :-

For studies in India: Maximum Rs.7.50 lacs.For studies abroad: Maximum Rs.15.00 lacs.


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4. MarginUpto Rs.4.00 lacs: - Nil.

Above Rs.4.00 lacs: Studies in India 5%Studies Abroad 15%

5. SecurityUpto Rs.4.00 lacs: No Security.

Above Rs4 lacs and Upto Rs 7.5 lacs: 3rd party guarantee acceptable to the Bank.Above Rs 7.5 lacs: Collateral Security of Suitable value or suitable 3rd party guarantee.

The security can be in the form of land / building / Govt. Securities / Public SectorBonds / Units of UTI, NSC, KVP, LIC Policy, Gold, Shares / Debentures, Bank Deposit inthe name of the student parent / guardian or any other third party with suitable Margin.

The document should be executed by both the student and the parent/guardian.

6. Rate of Interest

up to Rs. 4 lacs BPLR+TERM PREMIA minus 1.25Above Rs.4 lacs BPLR + TERM PREMIA+1%

Term premia of 0.50% p.a. shall be added for repayment period of 3 years & above.The interest shall be debited monthly on simple basis during the Repayment holiday/

Moratorium period.Penal Interest @ 2% be charged for above Rs.4.00 lacs for the overdue amount and overdueperiod.1% Interest concession for servicing of interest during the study period regularly is allowed atthe time of start of repayment period of loan.

7. RepaymentRepayment Holiday / Moratorium Courses period + 1 year OR 6 months after getting

job, whichever is earlier.


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Additional Benefits provided to the students by PNB

Reimbursement

of related expenses such as admission fee, monthly fee, Boarding and lodging expenses inrecognized Boarding Houses etc. already incurred by way of loan taken from own sources (tomeet the contingency) by the applicant, if claimed within 3 (three) months of such paymentand before consideration of the loan by the Bank.

Second time education loan

can be sanctioned to the same student borrower for completion of next higher course.

Check List

While applying for the loan, the borrower is required to furnish the followinginformation/papers:

Loan application on Bank's format. Passport size photograph Proof of Address (Permanent) / ID Proof. Proof of Age. Proof of having secured pass marks in last qualifying examination. Letter of admission in professional, technical or vocational courses.


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Prospectus of the course wherein charges like Admission Fee, Examination Fee,Hostel Charges etc. are mentioned.

Details of Assets & Liabilities of parents. s In case loan amount is above Rs.4.00 lacs: *. Particulars of Guarantors and details of

their Assets & Liabilities.

*. If immovable property offered as Collateral Security - copy of Title Deed,Valuation Certificate and Non-encumbrance Certificate from approved Lawyer of theBank.

Photocopy of Passport & Visa, in case of study abroad. Any other document/information, depending upon the case and purpose of the loan

ABOUT SBI BANK

State Bank of India (SBI)

(NSE:SBIN,BSE:500112,LSE:SBID) is the largest banking andfinancial servicescompany in India by revenue, assets andmarket capitalization. Its astate-ownedcorporationwith its headquarters inMumbai, Maharashtra. As of March 2011, it had assets of US$ 370billion with over 13,000 outlets including 150 overseas branches and agents globally. Bank ofMadras merged into the other two presidency banks, Bank of Calcutta and Bank of Bombayto form Imperial Bank of India, which in turn became State Bank of India. The governmentof Indianationalized the Imperial Bank of India in 1955, with theReserve Bank of Indiataking a 60% stake, and renamed it the State Bank of India. In 2008, the government took

over the stake held by the Reserve Bank of India.

SBI provides a range of banking products through its vast network of branches in India andoverseas, including products aimed atnon-resident Indians(NRIs). The State Bank Group,with over 16,000 branches, has the largest banking branch network in India. SBI has 14 LocalHead Offices situated at Chandigarh, Delhi, Lucknow, Patna, Kolkata, Guwahati (North EastCircle), Bhubaneswar, Hyderabad, Chennai, Trivandrum, Bangalore, Mumbai, Bhopal &Ahmadabad and 57 Zonal Offices that are located at important cities throughout the country.It also has around 130 branches overseas.
http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=SBIN&section=7http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=SBIN&section=7http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=SBIN&section=7http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500112http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500112http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500112http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Financial_servicehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=SBIDhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500112http://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=SBIN&section=7http://en.wikipedia.org/wiki/National_Stock_Exchange_of_India


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SBI is a regional banking behemoth and is one of the largest financial institutions in theworld. It has a market share among Indian commercial banks of about 20% in deposits andloans.[3]The State Bank of India is the 29th most reputed company in the world.

The State Bank of India is the largest of theBig Fourbanks of India, along with ICICI,

Punjab National BankandHDFC Bankits main competitors.[6]

HISTORY

On 30 April 1955, the Imperial Bank of India became the State Bank of India. Thegovernment of Indiarecently acquired the Reserve Bank of India's stake in SBI so as toremove any conflict of interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, enabling theState Bank of India to take over eight former state-associated banks as its subsidiaries. On 13September 2008, theState Bank of Saurashtra, one of its associate banks, merged with theState Bank of India.

SBI has acquired local banks in rescues. For instance, in 1985, it acquired the Bank of CochininKerala, which had 120 branches. SBI was the acquirer as its affiliate, theState Bank ofTravancore, already had an extensive network in Kerala

Non-banking subsidiaries

Apart from its five associate banks, SBI also has the following non-banking subsidiaries:

1. SBI Capital Markets Ltd

2. SBI Funds Management Pvt Ltd

3. SBI Factors & Commercial Services Pvt Ltd

4. SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)

5. SBI DFHI Lt
http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-2http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-2http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-2http://en.wikipedia.org/wiki/Big_Four_%28banks%29#Indiahttp://en.wikipedia.org/wiki/Big_Four_%28banks%29#Indiahttp://en.wikipedia.org/wiki/Big_Four_%28banks%29#Indiahttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-5http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-5http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-5http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/File:SBI_Imperial_bank_seal.jpghttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-5http://en.wikipedia.org/wiki/HDFC_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Big_Four_%28banks%29#Indiahttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-2


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Current Board of Directors

After the end ofO. P. Bhatt's reign as SBI Chairman on 31st March, 2011, the post was takenover byPratip Chaudhuri, who is the former Deputy Managing Director of the InternationalDivision of SBI. As on 4th August, 2011, there are twelve members in the SBI Board of

Directors, including Subir Gokarn, who is also one of the four Deputy Governors of theReserve Bank of India. The complete list of the Board members is:

1. Pratip Chaudhuri (Chairman)2. Hemant G. Contractor (Managing Director)3. Diwakar Gupta (Managing Director)4. A Krishna Kumar (Managing Director)5. Dileep C Choksi (Director)6. S. Venkatachalam (Director)7. D. Sundaram (Director)8. Parthasarathy Iyengar (Director)9. G. D. Nadaf (Officer Employee Director)10.Rashpal Malhotra (Director)11.D. K. Mittal (Director)12.Subir V. Gokarn (Director)

Branches of S.B.I

State Bank of India has 172 foreign offices in 37 countries across the globe. SBI has about 25,000 ATMs (25,000th ATM was inaugurated by the then Chairman

of State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBIgroup(including associate banks) has about 45,000 ATMs.

SBI has 21,500 branches, including branches that belong to its associate banks. SBI includes 99345 offices in India. India's number one ADB is in bellary i e State bank of India bellary ADBSymbol and slogan

The symbol of the State Bank of India is a circle and not key hole and a small man atthe centre of the circle. A circle depicts perfection and the common man being thecentre of the bank's business.

Slogans : "Pure banking nothing else

Loan to NTPC
http://en.wikipedia.org/wiki/O._P._Bhatthttp://en.wikipedia.org/wiki/O._P._Bhatthttp://en.wikipedia.org/wiki/O._P._Bhatthttp://en.wikipedia.org/wiki/Pratip_Chaudhurihttp://en.wikipedia.org/wiki/Pratip_Chaudhurihttp://en.wikipedia.org/wiki/Pratip_Chaudhurihttp://en.wikipedia.org/wiki/Subir_Gokarnhttp://en.wikipedia.org/wiki/Subir_Gokarnhttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Subir_Gokarnhttp://en.wikipedia.org/wiki/Pratip_Chaudhurihttp://en.wikipedia.org/wiki/O._P._Bhatt


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On 8th July, 2011, SBI agreed to give a loan of Rs 10,000 crore to NTPC (National ThermalPower Corporation), making it the largest loan SBI had ever given to any single customer inits entire 200 year history. The loan had a "door-to-door" maturity period of 12 years,accompanied by a drawdown period of four years. An NTPC press release said at the time ofthe declaration of the loan that "The loan shall be utilized for financing the capital

expenditure of ongoing and new projects."

NTPC chairman at the time, Arup Roy Choudhury clarified that the loan amount would beused to add 128,000 MW capacity by the end of year 2032 (NTPC'c capacity at the time ofthe declaration of the loan was 34,584 MW)[13]

Employees

SBI has turned into the third-largest employer in India among listed companies after CoalIndia Limited(383,347) andTata Consultancy Services(226,751).[15]

Recent awards and recognitions

Best Online Banking Award, Best Customer Initiative Award & Best RiskManagement Award (Runner Up) by IBA Banking Technology Awards 2010

The Bank of the year 2009, India (won the second year in a row) by The BankerMagazine

Best Bank Large and Most Socially Responsible Bank by the Business BankAwards 2009

Best Bank 2009 by Business India The Most Trusted Brand 2009 by The Economic Times Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries of Financial Inclusion By FINO Technology Bank of the Year by IBA Banking Technology Awards SKOCH Award 2010 for Virtual corporation Category for its e-payment solution The Brand Trust Report[16]: 11th most trusted brand in India.

Term loan granted to Indian Nationals for pursuing higher education in India or abroad whereadmission has been secured.

SBI Education Loan Amount of Loan
http://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-14http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-14http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-14http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-14http://en.wikipedia.org/wiki/Tata_Consultancy_Serviceshttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Coal_India_Limitedhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/National_Thermal_Power_Corporationhttp://en.wikipedia.org/wiki/National_Thermal_Power_Corporation


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For studies in India, maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs

SBI Education Loan Interest Rates

Loan Amount Rate of InterestLoans upto Rs. 4.00 Lacs 11.25% p.a.

Loans above Rs. 4.00 Lacs and upto Rs. 7.50 Lacs 12.75% p.a.

Loans above Rs. 7.50 Lacs 11.75% p.a.

An Interest Rate concession of 0.50% to Girl Student availing Student Loans

Documents required for SBI Education Loan

Completed Education Loan Application Form. Mark sheets of last qualifying examination Proof of admission scholarship, studentship etc Schedule of expenses for the specified course 2 passport size photographs Borrowers Bank account statement for the last six months Income tax assessment order, of last 2 years Brief statement of assets and liabilities, of the Co-borrower Proof of Income (i.e. Salary slips/ Form 16 etc)

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing ajob, whichever is earlier.

Place of Study Loan AmountRepayment Periodin Years

Studies in India Rs. 10.0 lacs 5-7 Years

Studies Abroad Rs. 20.0 lacs 5-7 Years

Expenses considered for loan

Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire

course) Travel Expenses/Passage money for studies abroad Purchase of computers considered necessary for completion of course Cost of a Two-wheeler upto Rs. 50,000/


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STATE BANK OF INDIA IN EDUCATION LOAN

State Bank of India offers term loan facility to Indian Nationals for pursuing higher educationin India or abroad where admission has been secured.

Course Eligibility

All courses having employment prospects are eligible.Graduation courses/ Post graduation courses/ Professional coursesother courses approved by UGC/Government/AICTE etc.

Expenses Covered

Fees payable to college/school/hostelExamination/Library/Laboratory fees

Purchase of Books/Equipment/Instruments/UniformsCaution Deposit/Building Fund/Refundable DepositTravel Expenses/Passage money for studies abroadPurchase of computers considered necessary for completion of courseCost of a Two-wheeler upto Rs. 50,000/-Any other expenses required to complete the course like study tours, project work etc.For studies in India, maximum Rs.10 lacsStudies abroad, maximum Rs.20 lacs

Interest Rate

For loans upto Rs.4 lacs - 11.00% p.a. FloatingFor loans above Rs.4 lacs - 12.00% p.a. Floatin

Higher education often becomes a problem for numerous students due to financialconstraints. But higher education is highly recommended so that the students can have betterchances of getting employed in this highly competitive job market. Given below are thedetails regarding the SBI education loans, the eligible courses, the rates of interest andeverything that the students would want to know regarding these loans.


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Courses eligible for SBI education loans:

Loans are sanctioned for all the courses that provide chances of employment. The degreecourses that the students can go for under these education loans are Bachelors, Masters,Diploma, Vocational as well as Professional courses. But it is highly important to note that

the institutes require recognition from either the government, or boards like AICTE or theUgc

Upper Limits of the Education Loans:

The maximum amount of the education loans varies according to where the student wants topursue the degrees from. For courses outside the borders of India, the amount that can begranted is a maximum of INR 20 lakhs. For studies within India, the maximum amount canbe up to INR 10 lakhs.

The education loan takes into consideration, expenses like: college fees, travel expenditure,purchase of uniforms, study materials (computers if required), caution money, refundabledeposit and the cost of a two wheeler that can be up to INR 50,000. Project work as well astouring for the purposes of studies is also taken into account.

The Interest Rates for the SBI Education Loans:

Take a look at the table below to know more about the interest rates of the SBI educationloans:

Amount (INR) % of Interest per annum

Up to 4 lakhs 13.75 as per current market rate (Base Rate + 3.75%)

(47.50) lakhs 15.25 as per current market rate (Base Rate + 5.25%)

More than 7.50 lakhs 14.25 as per current market rate (Base Rate + 4.25%)

Processing Fees Required:

There are no processing fees required for the education loans provided by the State Bank ofIndia. However the students who are looking forward to study abroad have to keep a securitydeposit amounting to INR 5,000. The amount will be adjusted with the margin money by thebank.

Repayment of the Education Loan

: The repayment will begin a year after the students complete their courses or 6 months after theysecure a job, whichever happens earlier. Whether the loan amount is INR 10 lakhs or INR 20 lakhs,the money has to be repaid to the bank within a time period of 5 to 7 years.


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REVIEW OF LITERATURE

Federal Education Loan Bank Lending to Community Banks, are Targeted SubsidiesNecessary? The Gramm-Leach-Bliley Act of 1999 amended the lending authority ofthe Federal Education Loan Banks to include advances secured by small enterprise

loans of community financial institutions. Three possible reasons for the extension ofthis selective credit subsidy to community banks and thrifts are examined, includingthe need to: subsidize community depository institutions, stabilize the FederalEducationLoan Banks, and address a market failure in rural markets for smallenterprise loans. They empirically investigate whether funding constraints impact thesmall-business lending decision by rural community banks. Specifically, they estimatetwo empirical models of small-business lending by community banks. The data rejectthe hypothesis that access to increased funds will increase the amount of small-business loans made by community banks.2)

In December 2006 Fulbag Singh and Reema Sharma had studied about the EducationFinance in India. Education, as one of the three basic needs of life, always remains onthe top priority of any person, economy, and government and society at large. Fromthe last decade, the Government of India has been continuously trying to strengthenthe Education sector by introducing various housing loan schemes for rural and urbanpopulation. .. The main objective of the bank is to promote and establish theEducation financial institutions in the country as well as to provide refinance facilitiesto Education finance corporations and scheduled commercial banks. Moreover, for thesalaried section, the tax rebates on Education loans have been introduced. A relevantchart has also been prepared to highlight the results.

The public release of the 2004-2005 education Disclosure Act data raised a numberof questions given the increase in the number and percentage of higher-pricedEducation loans and continued differentials across demographic groups. Here weassess three possible explanations for the observed increase in 2005 over 2004: (1)changes in lender business practices; (2) changes in the risk profile of borrowers; and(3) changes in the yield curve environment. Results suggest that after controlling forthe mix of loan types, credit risk factors, and the yield curve, there was no statisticallysignificant.

In May 1991 Stephen F. Borde had studied about the Is the Savings and LoanIndustry Facing Extinction? This article tells about the saving and loan crisis.Proposed solutions are discussed in the context of the industry as it currently stands.With a somewhat similar liability structure to that of banks (mainly short-termdeposits), the asset structure of S&Ls is quite different. Whereas banks assets consistof short-term loans, S&L assets consist largely of long-term loans, Therefore, in theabsence of adequate hedging measures, S&Ls are more vulnerable to interest rate risk,which can lead to lower profits when interest rates rise

In June 29, 2001 Joshua Rosner had studied about the Education in the NewMillennium: . They studied about the prospects of the U.S. Education sector over thenext several years. Based on our analysis, we believe there are elements in place for

the Education sector to continue to experience growth well above GDP. However, webelieve there are risks that can materially distort the growth prospects of the sector.


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Specifically, it appears that a large portion of the Education sector's growth inthe1990's came from the easing of the credit underwriting process. The increasing useof software to streamline the origination process and modify/recast delinquent loansin order to keep them classified as "current"* Changes in the appraisal process whichhas led to widespread over appraisal/over-valuation problem sIf these trends remain in

place, . Despite the increasingly more difficult economic environment, it may bepossible for lenders to further ease credit standards and more fully exploit lesspenetrated markets.

Industry participants in combination with eased regulatory standards and the supportof the GSEs (Government Sponsored Enterprises) have overcome many of them.Ifthere is an economic disruption that causes a marked rise in unemployment, thenegative impact on the Education could be quite large. Although we have yet to seeany materially negative consequences of the relaxation of credit standards, we believethe risk of credit relaxation and leverage can't be ignored. Importantly, a relativelynew method of loan forgiveness can temporarily alter the perception of credit health

in the Education sector. Such policy initiatives may for a time distort the relevancy ofdelinquency and foreclosure statistics.

Most loans are in the form of credit lines. Empirical studies of line demand have beencomplicated by their use of data on publicly traded firms, which have a wide menu offinancing options. We avoid this problem by using a unique data set from a largefinancial institution of loan commitments made to 712 privately-held firms. We testMartin and Santomero's (1997) model, in which lines give firms the speed andflexibility to pursue loan opportunities. Our findings are consistent with theirpredictions. Firms facing higher rates and fees have smaller credit lines. Firms withhigher growth commit to larger lines of credit and have a higher rate of lineutilization. Firms experiencing more uncertainty in their funding needs commit tosmaller credit lines. Almost all firms convert unused credit line portions into spotloans and take out new lines.


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IMPORTANCE OF PNB AND SBI BANK

PNB LOAN IMPORTANCE:-

You will need to furnish the following documents along with the completedApplication form.

Mark sheet of last qualifying examination of school and graduate studies in India Proof of admission to the course Schedule of expenses for the course 2 passport size photographs Statement of Bank account for the last six months Proof of Residence(Recent Telephone Bill / Electricity Bill / Municipal Tax receipt etc.,) Proof of Identity(Passport copy / Driving License / Voter ID Card /

Ration Card / PAN card etc.)

Proof of previous employment and form 16s for the last two years Receipt of Rs.2.00lakhs paid to PNB

Personal assets and liabilities statement along with photocopies as proofs

SBI LOAN IMPORTANCE:-

1.Purpose for which the loan can be availed:

The loan will be sanctioned for extending financial assistanceto deriving/ meritorious students for pursuing higher educationIn India and abroad

2. Courses Eligible:

Studied in India:

Graduation, Post-graduation including regular technical and professionalDegree/Diploma courses conducted by Colleges/universities approved by UGC/AICTE/IMC/Govt. Etc.

Regular Degree/ Diploma Courses conducted by autonomous institutions like IIT,IIM etc.

Teacher training/ Nursing courses approved by Central government or the StateGovernment.


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Vocational Training and skill development study courses will not be covered underthe Education Loan Scheme, as the scheme is framed to provide bank loans for higherStudies.

Studied in abroad:Graduation/ Post-graduation for job oriented Professional/ technical courses offered

by reputed Universities.

3. Student Eligibility:

s through Entrance

Test/Selection process.

qualifying examination

4. Expenses Considered for Loan:

Fee payable to college/school/hostel:Where the student will be making his own boarding and arrangements, the sanctioningauthority is authorized to fund boarding and lodging expenses on the basis of estimatesubmitted by the student/parent, provided such expenses are not more than those chargedby the educational institution for boarders.

Examination/Library/Laboratory fee:Purchase of books/equipments/instruments/uniforms, Caution deposit /buildingfund/refundable deposit supported by Institution bills/receipts the amount considered forloan should not exceed 10% of the tuition fees for the entire course.

Travel expenses/passage money for studies abroad. Purchase of computers - essential for completion of the course. Any other expense required to complete the course like study tours, project

work, thesis, etc.

Cost of a two-wheeler up to Rs. 50,000 can be included in the expensesconsidered eligible for finance where the loan amount is secured by a suitablethird party guarantee and/or tangible collateral security.

Two-wheeler can be necessary in some cases where hostel and college are farapart

Premium of the insurance policy covering the life of the borrower for loan

5. Maximum Loan Amount:

Studies in India - Maximum Rs. 10.00 lacs

Studies Abroad - Maximum Rs. 20.00 lacs


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6. Margin

Upto Rs.4 lacs: Nil Above Rs.4 lacs: Studies in India: 5 % Studies Abroad: 15 % Scholarship/assistantship to be included in may be brought in on

year-to-year basis as and when disbursements are made, on a pro-rata basis


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OBJECTIVE OF THE STUDY

To analyze the education loan scheme provided by PNB and SBI bank. To do comparative analysis of education loan of PNB AND SBI bank. To study that which bank is providing better loan schemes. To know the consumer perception about the education loan of banks.


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RESEARCH METHODOLOGY

Research is an art of scientific investigation. It refers to a search for knowledge. The advance

Learners Dictionary English lays down the meaning of research as, A careful investigation

or inquiry especially through search for new facts in any branch ofknowledge.

Research Methodology is a way to systematically solve the research problem. The research

begins its formation when the problem or objective of the research is identified for which a

research report is conducted.

RESEARCH DESIGN:-

A research design is the arrangement of condition for collection for analysis of data in amanner that aims to combine relevance to search purpose with Economy in procedure. Infact

the search design is the conceptual structure within which research is conducted; it constitutes

the blue print for the collection, measurement and analysis of data

Types of research design -:

i) Descriptive:- Descriptive research includes surveys and fact-findings enquiries ofdifferent kind. The major purpose of descriptive research is description of the state of

affairs as it exists at present. The main characteristics of this method are that the

researcher has no control over the variables; he can only report what has happened or

what is happening.

ii) Analytical: - In Analytical research, the researcher has to use facts or informationalready available, and analyze these to make a critical evaluation of material.

iii)Applied: - It aims at findings a solution for an immediateproblem facinga society oran organization/business organization.

iv)Fundamental: Fundamental research is mainly concerned with generalizations andwith the formulation of a theory.

v) Exploratory: Research studies concerning human behavior carried on with a view tomake generlisations about human behaviors is an example of fundamental research.

The research study carried out is exploratory in nature

SAMPLING:-

These are following steps in my sampling design:-


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1. Universe:- The first step in developing in sample design is to clearly design The setof objects technically called the universe.

2. Census:- A complete enumeration of all items in the population known ascensusenquiry.

3. Survey population: - These are the respondent from the population on which thestudy is performed. These groups are taken into consideration while doing the

research.

4. Sampling unit decision has to be taken concerning a sample unit before selectingsample

5. Judgement sampling has been used to collect the sample from the population.In this method of sampling the choice of sample items depends exclusively

On the judgement of the investigator.

Data collection -:

Data collection refers to the process of gathering the information through any source which is

essential to fulfill the research study.

Type of data collection -:

1) Primary data -:

Primary data are the data that are new and he observes by investigator. All the primary data

are more valuable things to the researchers and researcher must careful under finding the

primary data.

Method of primary data collection:-

questionnaires Interview method circulars Schedules

2) Secondary data -:

These are the data which are already available in the written form at any place and researcher

doesnt have to find of their own through interview or questionnaire method. The differentsources of secondary data -:


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Books Magazines Journals Reports Websites Newspapers

In this report -:

In this report both primary and secondary data are used .I used questionnaires to collect

primary data & newspapers & websites to collect secondary data.

LIMITATION

Although best of the effort were made to conduct a performed survey but still it faces certainlimitation following are:

The survey was conducted only 1oo respondent.


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Some of the respondent did not answer all the question which could hamper the findresult to a certain extent

They study confine itself to the respondent of region only hence finding would notbe relevant other city.


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DATA ANALYSIS

THE RESULTS OF A SURVEY WHICH WAS CONDUCTED ON 50

RESPONDENTS HAVING EDUCATION lOAN IN SBI BANK IS AS

FOLLOWED

What is your occupation?s

Business man 15

Student 0

Government employee 22

Other 0

House wife 9

Source: Primary Data

0

5

10

15

20

25

business man student govt emp other house wife

Series 1

Column1

Column2


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Interpretation :

Total no. Of respondents 46 0 of our respondent student 22 of our respondent were government employee 15 of our respondent business man 9 of our respondent house wife None of our respondent belongs to other 4 respondents did not answerer

2.From how many years you are associated with their bank?

Greater than 1 year 10

1-5year 24

Less than 5 year 12

Interpretation

Total no. Of respondent 46. 10 associated greater than 1 year 24 associated 1to 5 year

0

5

10

15

20

25

30

> than 1 year 1-5 Year < 5 year

Series 1

Series 1


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12 associated less than 5 year

3. How do you come to know about education loan schemes of that bank?

Newspaper 18

TV 14

Internet 10

Other recourses 4

Interpretation

Total no. Of respondent 46. 18 of our respondent newspaper. 14 of our respondent TV. 10 of our respondent internet. 4 of our respondent other recourses.

0

2

4

6

8

10

12

14

16

18

20

Newspaper T.V Internet Other resourses

Series 1

Series 1


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4. Are u aware of all term and conditions of education loan?

Yes 40

No 6

.

Interpretation

Total no. Of respondent 46 40 people are aware o fall term and condition of education loan. 6 people are not aware of all term and condition.

5. Are you satisfy with interest rate charges by your banks?

Strongly agree 12

Agree 30

Disagree 4

Strongly disagree 0

0

5

10

15

20

25

30

35

40

45

Yes No

Series 1

Series 1


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Interpretation

Total number of respondent of 46. 12 among all consumers are strongly agreed by interest rate of the bank. 30 among all consumers are agreed by interest rate. 4 among all consumers are disagree by interest rate. 0 consumers are disagree by interest rate

6. Your bank offers which type of services?

Mobile banking 24

Net banking 15

Forex banking 7

0

5

10

15

20

25

30

35

Strongly agree agree Disagree Strongly Disagree

Series 1

Series 1


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Interpretation

Total no. Of respondent 46 . 24 mobile banking service offers by bank. 15 net banking service offers by bank. 7 forex banking service offers by bank.

0

5

10

15

20

25

30

Mobile Banking Net Banking Forex Banking

Series 1

Series 1


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7.Do you agree that your bank loan processing is fast?

Strongly agree 8

Agree 26

Disagree 9Strongly disagree 3

Interpretation .

Total number of respondent of 46. 8 among all consumers are strongly agreed the bank loan processing. 26 among all consumers are agreed the bank loan processing. 9 among all consumers are disagree the bank loan processing. 3 consumers are disagree the bank loan processing.

8. Do you satisfied with the after education loan services provided by your banksare best as compare to other banks?

0

5

10

15

20

25

30

Strongly Agree Agree Disagree Strongly Disagree

Series 1

Series 1


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Strongly agree 12

Agree 30


Interpretation

Total no. Of respondents 46. 12 people are strongly agreed the after education loan services provided by the bank. 30 people are agree the after education loan services provided by the bank. 4 people are disagree the after education loan services provided by the bank. People are strongly disagree the after education loan services provided by the bank.

9. Are you satisfied with employee behaviour of bank?Strongly agree 19

Agree 23

Disagree 4

Strongly disagree 0

0

5

10

15

20

25

30

35


Series 1

Series 1


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Interpretation

Total no. Of respondents 46. 19 people are strongly agreed the employee behaviour. 23 people are agreed the employee behaviour. 4 people are disagree the employee behaviour. People are strongly disagree the employee behaviour.

0

5

10

15

20

25

30

35

40

45

yes No

Series 1

Series 1


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10.Does bank give any discount upon services?Yes 40

No 6

Interpretation

Total no. Of respondent 46 40 people are satisfied with discount schemes of bank loan. 6 people are not satisfied with discount schemes of bank loan.

0

5

10

15

20

25

30

35

40

45

yes No

Series 1

Series 1


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11.Are you satisfied by the time taken in sanctioning loan?

Yes 34

No 12

Interpretation

Total no. Of respondents 46. 34 people are satisfied the sanctioning the loan time. 12 people are not satisfied the sanctioning the loan time.

0

5

10

15

20

25

30

35

40

Yes No

Series 1

Series 1


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12.Have you face any difficulty during taken loan?

Yes 39No 7

Interpretation

Total no. Of respondents 46. 39 people are taking a loan without any difficulty. 7 people are not taking a loan of any difficulty.

0

5

10

15

20

25

30

35

40

45

Yes No

Series 1

Series 1


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13. Which grade you want to give of education loan schemes of bank?

Excellent 24

Good 18

Average 4

Below average 0

Interpretation

Total no. Of respondents 46 24 people are grade excellent of education loan schemes. 18 people are grade good of education loan schemes.

4 people are grade average of education loan schemes. People are grade below average of education loan schemes.

0

5

10

15

20

25

30

Excellent Good Average Below

Series 1

Series 1


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PNB: 50

1. What is your occupation?

Business man 16

Student 0

Government employee 22

Other 0

House wife 9

Interpretation

Total no. Of respondent 47. 16 of our respondent business man. 0 of our respondent student.

22 of our respondents government employee 9 of our respondent house wife.

0

5

10

15

20

25

business man student governmentemloyee

other house wife

Series 1


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2. From how many years you r associated with their bank?

Greater than 1 year 10

1-5year 25

Less than 5 year 12

Interpretation

Total no. Of respondent 46. 10 associated greater than 1 year 25 associated 1to 5 year 12 associated less than 5 year

3. How do you come to know about education loan schemes of that bank?

Newspaper 18TV 14

0

5

10

15

20

25

30

> 1 year 1to 5 year < 5 year

Series 1


44/65

Internet 11Other recourses 4

Interpretation

Total no. Of respondent 47. 18 of our respondent know through newspaper. 14 of our respondent know through TV. 11 of our respondent know through internet. 4 of our respondent know through other recourses.

4. Are u aware of all term and conditions of education loan?

Yes 40

No 7

.

0

2

4

6

8

10

12

14

16

18

20

news paper T.V internet other resources

Series 1


45/65

Interpretation

Total no. Of respondent 47 40 people are aware o fall term and condition of education loan. 7people are not aware of all term and condition.

5. Are you satisfy with interest rate charges by your banks?

Strongly agree 12

Agree 30

Disagree 5

Strongly disagree 0

0

5

10

15

20

25

30

35

40

45

Yes No

Series 1

Series 1


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Interpretation

Total number of respondent of 47. 12 among all consumers are strongly agreed by interest rate of the bank. 30 among all consumers are agreed by interest rate. 5 among all consumers are disagree by interest rate. 0 consumers are disagree by interest rate

6. Your bank offers which type of services?

Mobile banking 24

Net banking 15Forex banking 8

0

5

10

15

20

25

30

35

strongly agree agree dis agree strongly agree

Series 1


47/65

Interpretation

Total no. Of respondent 47 . 24 mobile banking service offers by bank. 15 net banking service offers by bank. 8forex banking service offers by bank.

0

5

10

15

20

25

30

Mobile Banking Net Banking Forex Banking

Series 1

Series 1


48/65

7.Do you agree that your bank loan processing is fast?

Strongly agree 8

Agree 27


Interpretation .

Total number of respondent of 47. 8 among all consumers are strongly agreed the bank loan processing. 27 among all consumers are agreed the bank loan processing. 9 among all consumers are disagree the bank loan processing. 3 consumers are disagree the bank loan processing.

13.Do you satisfied with the after education loan services provided by your banksare best as compare to other banks?

0

5

10

15

20

25

30

strongly agree agree disagree strongly agree

Series 1


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Strongly agree 13

Agree 30

Disagree 4

Strongly disagree 0

Interpretation

Total no. Of respondents 47. 13people are strongly agreed the after education loan services provided by the bank. 30 people are agree the after education loan services provided by the bank. 4 people are disagree the after education loan services provided by the bank. people are strongly disagree the after education loan services provided by the bank.

14.Are you satisfied with employee behaviour of bank?Strongly agree 19

Agree 23

Disagree 4

Strongly disagree 0

0

5

10

15

20

25

30

35


Series 1

Series 1


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Interpretation

Total no. Of respondents 47. 19 people are strongly agreed the employee behaviour. 24 people are agreed the employee behaviour. 4 people are disagree the employee behaviour. people are strongly disagree the employee behaviour.

0

5

10

15

20

25

30

strongly agree agree disagree strongly agree

Series 1


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15.Does bank give any discount upon services?Yes 40

No 7

Interpretation

Total no. Of respondent 47 40 people are satisfied with discount schemes of bank loan. 7 people are not satisfied with discount schemes of bank loan.

0

5

10

15

20

25

30

35

40

45

yes No

Series 1

Series 1


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16.Are you satisfied by the time taken in sanctioning loan?

Yes 34

No 13

Interpretation

Total no. Of respondents 47. 34 people are satisfied the sanctioning the loan time. 13 people are not satisfied the sanctioning the loan time.

0

5

10

15

20

25

30

35

40

Yes No

Series 1

Series 1


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17.Have you face any difficulty during taken loan?

Yes 39No 8

Interpretation

Total no. Of respondents 47. 39 people are taking a loan any difficulty. 8people are not taking a loan of any difficulty.13. Which grade you want to give of

education loan schemes of bank?

Excellent 24

Good 19

Average 4

Below average 0

0

5

10

15

20

25

30

35

40

45

Yes No

Series 1

Series 1


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Interpretation

Total no. Of respondents 47 24 people are grade excellent of education loan schemes. 19 people are grade good of education loan schemes. 4 people are grade average of education loan schemes.

.

GENERAL FINDINGS

0

5

10

15

20

25

30

Excellent Good Average Below

Series 1

Series 1


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Sr. No Parameter Private Banks Public Banks1 Beneficiaries Economically Affluent

Section of SocietyEconomically WeakerSection Also

2 Objective Commercial National and Social3 Aimed At Profit Earning Not Profitable

4 Margin Money Must Flexible5 Security Necessary Less Important

6 Interest rate High Reasonable

7 Attitude Rigid and Strict Flexible and Liberal


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1 Max. loan ForStudies in India

Rs 7.50 Lacs Rs 10.00 Lacs

2 Max. Loan forStudies in Abroad

Rs 15.00 Lacs Rs 20 Lacs

3 Interest rates Up to Rs 4.00

PTLR Above Rs4.00 PTLR + 1%

Up to Rs 4.00

10.50% P.a AboveRs 4 Lacs, 11.5%P.a

4 Repayment PeriodStarts From

1 Year AfterCompletion OfCourse or 6 MonthAfter Securing aJob Which Ever isEarlier

1 Year AfterCompletion OfCourse or 6 MonthAfter Securing aJob Which Ever isEarlier

5 Repayment Period To be Repaid in 5-7 Year afterCommencement of

Repayment

In India-Up to Rs7.5 Lacs,5-7 Yearsabove 7.5 Lacs, 5-

10 Years.In Abroad- Up to15 lacs-5-7 yearsAbove Rs 15 lacs-5-10 Years

6 Margin Up to Rs 4 Lacs-NilAbove Rs 4 LacsStudied in India-5%, Abroad-15%

Up to Rs 4 Lacs-NilAbove Rs 4 LacsStudied in India-5%, Abroad-15%

7 Processing Fees Not ProcessingFees/ Upfront

Charges

No ProcessingFees/ Upfront

Charges DepositRs 5000 Foreducation Loansfor Studies AbroadWhich will beAdjusted in marginMoney

8 Security Up to rs 4 Lacs:No SecurityAbove Rs 4 LacsCollateral Securityof Suitable value(Equivalent Of100% of Amountof Loan or Co-Obligation ofParents/ Guardian /Third Party)

Up to Rs 4 Lacs-No SecurityAbove Rs 4 Lacsto Rs 7.5 Lacs:Third Party.Guarantee AboveRs 7.5 Lacs to Rs10 Lacs(India):TangibleCollateral Securityfor Full Value ofLoanAbove Rs 7.5 Lacsto Rs 15Lacs(Abroad):Tangibles

Collateral Securityof Suitable Value


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of loan Or Thirdparty GuaranteeRs 15 Lacs to Rs20 Lacs(Abroad):TangibleCollateral SecurityFor Full value ofLoan

RECOMMENDATION


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Banks should go for advertisement Campaign from Scratch. Banks should try to cash its brand image. Strong branch network should be made and staff personnels incentive should be

increased Banks should increase its product line in education loans. Special scheme for non-professional students as well as for professional students

should be increased


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CONCLUSION

All the people are availing loan facility from both the bank. No of respondent S.B.I are 46and 47 P.N.B banks people are relating with P.N.B more satisfied with the interest rate ascompare to S.B.I. S.B.I people much know about education loan then PNB. Both PNB andSBI bank mostly after mobile banking services. Processing of S.B.I is faster than PNB Bank.After education loan services of PNB Bank is good as compare to SBI Bank. People relatedwith SBI are more satisfied with employee behaviour as compare to PNB bank. People aremore satisfied from SBI bank for time taken for sanction the loan. From all this 1 concludethat in SBI Bank in Education loan people are most Satisfied in comparison to PNB bank.

BIBILIOGRAPHY


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There was immense need and flow of the information while conducting the analysis as well

as while writing the thesis report, which was gathered through various sources mentioned

below:

Websites

www.pnbindia.com

www.statebankofindia.com

www.google.com

www.economictimes.com

Reference Books-

o Kothari, C.R., Research Methodology, New Delhi, New age international PvtLimited, 2008.

Broachers and various other documents gathered and collected from bank and various other

sources such as ATM centers and associates.
http://www.google.com/http://www.google.com/


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ANNEXURE

The Questionnaire used specifically for PNB and SBI Bank Is below.

QUESTIONNAIRE

NAME

ADDRESS

AGE

18 to 25 years 25 to 35 35 to 40 Above 40 years

OCCUPATION:

Businessman Student Government Employee House wife others

1. From how many years you are associated with this bank?

Less than 1 year 1 to 5 year

Over 5 year

2. how do you come to know about Education loan schemes of that Bank?

Newspapers

Television

Internet


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Other Resources (please specify)

3. Are you aware of all terms and conditions of Education loan?

Yes No

4) Are you satisfy with the interest rate charging by your Banks?

Strongly agree

Agree

Disagree

Strongly Disagree

5) Your Bank offer which type of services?

Mobile Banking


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Net banking

Forex Banking

6) Do you agree that your bank loan processing is fast?

Strongly agree

Agree

Disagree

Strongly Disagree

7) Do you satisfy with the after education loan services provided by your banks are best

as compared to other banks?

Strongly agree

Agree

Disagree

Strongly Disagree


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8) Does the cost of education loan is appropriate, according to your demand?

Yes No

9) Are you satisfy with employee behaviour of bank?

Strongly agree

Agree

Disagree

Strongly Disagree

10. Does bank give any discount upon loan services?

Yes No

11. Are you satisfy by the time taken in sanctioning loan?

Yes No

12. Have you face any difficulty during taking loan?


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Yes No

13.which grade you want to give to education loan schemes of bank?

Excellent Good

Average Below average

Any suggestion that you want to give_____________________________________________________________________________________________________________________________________________