Educational loans…..IBA Policy

July 31st, 2010| Education, Finance.

Educational loans…..IBA Policy

The government is trying to increase the literacy rate since last decade and even now we don’t have required quota in the GDP. So the government is encouraging the banks to provide educational loans and the private banks and government banks are showing interest towards these loans.

Changing the rules and regulations:

The banks are changing few rules and regulations as the government is encouraging them and they want to compete with other banks. Due to this the rate students studying higher education had increased by 60% and the applications are mainly applied by the engineering, management and computer science candidates.

IBA policy:

In the past, there are different procedures to apply for loan for different banks which is somewhat difficult. Indian bank association had observed this and so it introduced the modified IBA model loan scheme. Through this scheme, it is associating with every bank and the banking experts said that it is easy with this scheme to apply for loans.