Challenges Facing The Banks Of Kerala Related To Education Loan

Abstract

Education is the process of instruction meant for the all-round development of individuals, providing with necessary tools to participate in day-to-day activities. For the higher education sector of Kerala government alone is not able to contribute sufficient funds. The growth rate of NPA’s in Kerala for the four years is the same.  The banks facing many challenges such as Lack of sufficient funds, Not so remunerative (affects the profitability of banks), Increase in workload, Lengthy sanctioning norms, Willful default, Affects other production oriented lending, Political pressure, Unfavorable attitude (procedural delays) of an educational institution, Increasing NPA, Inadequate documents from borrowers, Complexity in education loan procedure, Poor CIBIL rating of joint borrowers, Willful default by the borrowers, Loanees association intervention, Lack of security for an education loan, Difficulty to locate borrowers due to change in the address, Busy schedule of bank staff, Inadequate government support, Inadequate support from parents, Inadequate insurance coverage and misutilisation of an educational loan. The present study focused on the challenges facing the banks of Kerala related to Education Loan.