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Education Loans In India : Financing higher education in India - Education Loans can never be the only solution  

Finally, I have laid down the limitations of Education Loans India as a source of finance for higher education and the argument behind why Government must not heavily rely on public or private financial institutions.<br>http://www.avanse.com/education-loan

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Education Loans In India : Financing higher education in India - Education Loans can never be the only solution  

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  1. Education Loans India

  2. Financing higher education in India - Education Loans can never be the only solution

  3. In my previous blogs, I have spoken in great length about the need for public expenditure in higher education. In this section, I would like to highlight one of the most preferred options for financing higher education in India, namely ‘Education Loans’. Off late, education loan has been one of the most popular sources of financing higher education in India. Education loans are provided by both public and private banks under the following structure: • Loans for 4 lakhs INR or less do not require any kind of collateral by the bank. • Loans for more than 4 lakhs INR are given by banks only upon provision of collateral by the lender.

  4. One of the main drawbacks of education loan is the nature of these loans. • Banks always tend to give loans to only those clients who either provide collateral or who belong to a financially stable family, thereby making education loans inaccessible to low income households. • There are no standard requirements set in place which prefer student who have secured a higher marks in their previous degree, or who belong to a low income household. • However, on a positive note, some banks feel that repayment rates on education loans are generally not a matter of concern, given the fact that students always want to maintain a good credit profile. • To avoid low repayment rates, banks also tie up with reputed institutions and provide loans to students from those institutes.

  5. Considering the above factors, it would not be wrong to say that education loan is not the most reliable option for financing higher education. • In my first blog, I wrote about how higher education is financed in India and the alarming decline in the share of public sector spending in higher education. • We then moved on to discussing the implications of lack of public expenditure in the education sector and why a public-private partnership is the need of the hour in higher education sector. • Finally, I have laid down the limitations of Education Loans India as a source of finance for higher education and the argument behind why Government must not heavily rely on public or private financial institutions. • Source: http://www.developmentoutlook.org/2012/11/financing-higher-education-in-india.html

  6. Follow us on https://www.facebook.com/AvanseEducationLoan https://www.linkedin.com/company/avanse-financial-services https://twitter.com/avanseeduloan https://plus.google.com/+AvanseFinancialServicesLtdMumbai https://www.youtube.com/channel/UCcsuUx1EH1C08XmX2embpug

  7. Read more on Education Loans : http://www.avanse.com/avanse-education-loans/ • Thank You..!!!

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