A PROJECT REPORT

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ON EDUCATIONAL LOAN AS A FACILITATING FACTOR FOR HIGHER EDUCATION- A STUIDY AT IOB

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY: N.SWARNALATHA MBA Enrollment No: 1009-10-672-013

NIZAM COLLEGE (AUTONOMOUS) ACCREDITED BY NAAC WITH A GRADE

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A Constituent College of Osmania University with Potential for Excellence BASHEERBAGH, HYDERABAD 500 001
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Nizam College (Autonomous) Constituent College of Osmania University, Basheerbagh, Hyderabad - 500 001. Department of Business Management

This is to certify that Ms. N.SWARNALATHA is a bonafide student of this college, studying M.B.A IV semester bearing Hall Ticket No- 1009-10-672-013.

Coordinator
NIZAM COLLEGE

Principal

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MASTER OF BUSINESS ADMINISTRATION (MBA) HYDERABAD

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DECLARATION I, the undersigned, hereby declare that the project report entitled ON EDUCATIONAL LOAN AS A FACILITATING FACTOR FOR HIGHER EDUCATION-carried out at(INDIAN OVERSEAS BANK ) is my original work written and submitted by me in partial fulfillment of Master`s Degree in Business Administration of (OSMANIA University). I also declare that this project has not been submitted earlier in any other university or institution.

Date:

(Candidate Name)

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ACKNOWLEDGEMENT
I take this opportunity to extend my profound thanks and deep sense of
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gratitude to the authorities of ON EDUCATIONAL LOAN AS A FACILITATING

FACTOR FOR HIGHER EDUCATION for giving me the opportunity to undertake

this project work in their esteemed organization. I profusely thank Mr.RAM GOPAL (CHIEF MANAGER). My sincere thanks to Honorable Principal Mr. NAIDU ASHOK, Head of the Department Mrs. USHA and my project guide Mrs. SARITHA for the kind encouragement and constant support extended in completion of this project work. I am also thankful to all those who have incidentally helped me, through their valued guidance, co-operation and unstinted support during the course of my project.

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CONTENTS Chapter No.

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Chapter Name Introduction 1.2.plan of study a.study in abrod b. study in india 1.3.Objectives a.funding pattern of education loan at iob 1. higher education 2. special education 3. distance education 4. private education 4. employ education 1.4. Methodology a. actual collection of data b. software used for data 1.5. Limitations of study Bank Profile 2.1.details of bank profileProfile Cost sheets Graphical representation of variations in costs

4.

Review of literature 3.1History o loan in india 3.2. General information 3.3. Types of education loan 3.4. Eligibility criteria 3.5. Document required 3.6. Education loan at IOB Analysis and interpretation 4.1. Number of students benefited
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5.

Conclusion and suggestation 5.1. Suggestation 5.2. Conclusion Bibliography

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1.Abstract:
Education assumes significance as a provider of input for economic, political and social development, besides as a source of knowledge. Economic growth in recent years has been based on availability and quality of knowledge in any country, which in turn depends on access and affordability to education. Hence, importance of education has increased to supply adequate and qualitative human capital. Functioning of education sector depends on availability of various resources, of which to a large extent on financial resources. Finances for education are mobilized from different sources like government spending, fees, educational loans, and others. Among these, educational loan has been seen as an alternative way of financing for education. In this background the present paper tries to analyze the trends and patterns of educational loan in India. Further, an attempt has been made to understand pattern of student loans provided by selected commercial banks. The study finds that educational loan is increasing over the years.

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CHAPTER 1

INTRODUCTION

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EDUCATIONAL LOAN AS A FACILITATING FACTOR FOR HIGHER EDUCATION- A STUIDY AT IOB

1.1 INTRODUCTION:

An educational loan is a kind of a monetary support that has to be reimbursed on time. There are various types of loan alternatives which can assist you. Educational loan can be a vital element with your monetary assisting as a whole. It does not matter whether you opt to study at university level, at a college or at a private school, education overall has become expensive and beyond the reach of many. Loan Bazaar allows the students to reimburse the loan slowly and after completion of their graduation. This way the students can give all their attention to the studies and not towards the loan worries. Also, majority of the loans enable the students to postpone or delay the payment of the loan by at least six months after completion of their graduation. This enables the students to get a suitable job and they can pay off their loans with ease. There are various loans that are made by various schools, government and private organizations. Most of them provide very minimal interest price. Some are created on the basis of the needs and some are not. At Loan Bazaar, seeing the fact that there are many students those who are having different requirements and desires, there are a variety of educational loans created suitably for the students, helping them with their monetary issues. Higher education seems out of reach to many these days. To take thousands of dollars as a loan to pay as an education fee seems a scary idea. Also, majority of students are hesitant whether to take up a student loan for further education or not.
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Loan Bazaar provides all the students with educational loans which will aid them by making payments for their education fee and getting a suitable job with a handsome salary and satisfying future prospects. In the professional arena nowadays the basic criteria is the college study. So we provide educational loans that can be a real asset in securing the future of the students.

Education is central to the Human Resources Development and empowerment in any country. National and State level policies are framed to ensure that this basic need of the population is met through appropriate public and private sector initiatives. While government endeavour to provide primary education to all on a universal basis, higher education is progressively moving into the domain of private sector. With a gradual reduction in government subsidies higher education is getting more and more costly and hence the need for institutional funding in this area. The scope of education has widened both in India and abroad covering new courses in diversified areas. Development of human capital is a national priority and it should be the endeavour of all that no deserving student is denied opportunity to pursue higher education for want of financial support. Loans for education should be seen as an investment for economic development and prosperity. Knowledge and information would be the driving force for economic growth in the coming years. Minister in his Budget Speech for the year 2004-05, IBA had communicated certain changes in the security norms applicable to educational loans with limits above Rs.4 lakhs and up to Rs. 7.5 lakhs. We have been receiving enquiries from members seeking clarifications on the various provisions of the scheme based on feed back received from the branches. With a view to ensure that the scheme is implemented in letter and spirit, it was decided to review the scheme and make modifications in the scheme to facilitate smooth operation at bank branches. Towards this, a Working Group of General Managers drawn from select banks was constituted at IBA. This revised model scheme has been prepared based on the suggestions made by the Group.

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PLAN OF STUDY

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1.2.PLAN OF STUDY:
To get admission to the US Universities & to get I-20 for US visa, "Availability of Liquid Funds" to complete the course needs to be demonstrated.Credila's "Education Loan Page | 14 Sanction Letter" before admission can help you show the availability of liquid funds.

a.STUDY IN ABROAD
Students face many challenges while securing education loans. Some of the issues faced by students include: For students going to the USA, UK, Canada, Australia, etc. there are number of activities and formalities which take away the time. Running around from one branch to the other and doing multiple rounds for education loans get very difficult Visa interview deadlines keep approaching fast and the education loan approval letter is required well in time to set up the visa interview. Hence, there is a tremendous time pressure to get education loan in time Flexibility in terms of loans which need to be customized to the requirements of the students and their respective courses Ability to find the required margin money (portion of the fees that is to be paid by students/parents which is not covered by the loan) Required loan amount is more than the value of the collateral security Ability to prove that the University, College and the applied Course is appropriate. (This can be quite challenging if the decision maker is not aware of the thousands of valid and accredited educational choices available in today's fast changing world of education) Ability to repay the loan from the USA Ability to have customer service from the USA with a toll free number Ability to get web-based access to the loan account with web enabled transaction processing inclusive of electronic payments, etc. Credila is a specialized lender for Education Loans. Credila has invested time and resources to set up appropriate systems, processes and knowhow related to the education industry. Credila has numerous databases on education sector. Credila's credit scoring model for the approvals of loans is
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designed specifically for education loans. Credila, therefore, understands problems, challenges and issues faced by the students and their parents. Credila's objective is to work closely with students and parents to try to identify the appropriate education loan programs for them.

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b.Study In India

Students face many challenges while securing education loans. Some of the issues faced by students include: Flexibility in terms of the loans which need to be customized to the requirements of the students and their respective courses Ability to find the required margin money (portion of the fees that is to be paid by students/parents which is not covered by the loan) Required loan amount is more than the value of the collateral security Ability to prove that the University, College and the applied Course is appropriate. (This can be quite challenging if the decision maker is not aware of the thousands of valid and accredited educational choices available in today's fast changing world of education) Ability to get the loan approval letter in time to meet the admission related deadlines Ability to get appropriate customer service during the repayment cycle Ability to get web-based access to the loan account with web enabled transaction processing inclusive of electronic payments, etc. Credila is a specialized lender for education loans. Credila has invested time and resources to set up appropriate systems, processes and know-how related to the education industry. Credila has numerous databases on education sector. Credila's credit scoring model for the approvals of loans is designed specifically for education loans. Credila, therefore, understands problems, challenges and issues faced by the students and their parents. Credila's objective is to work closely with students and parents to try to identify the appropriate education loan programs for them.
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1.3.OBJECTIVES:
1. a. b. c. d. e. 2. Funding pattern of educational loan at IOB for higher education . special education grant for distance education private education loan employ education loan statistical data for 3 yrs

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Statistical data

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1.4.METHODOLOGY:
a. ACTUAL COLLECTION OF DATA

The source used for the collection of data is the primary source.
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b. SOFTWARE USED FOR DATA ANALYSIS

Software like Microsoft Office (EXCEL) was used to draw graphs, tables which were used to show the analysis of the data collected.

1.5 LIMITATIONS OF THE STUDY o Not eligible for distance education, part time course o open universities, for tution fees, bank finance will be available for tution fees, o hotel mess, and living expenses including computer but not for donation, building funds upto 4 lakhs no margin and no security .

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CHAPTER -2
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BANK PROFILE

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2.1.BANK PROFILE:
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Indian overseas bank:

Indian Overseas Bank (IOB) (BSE: 532388) is a major bank based in Chennai (Madras), with more than 2650 domestic branches, 3 extension counters and six branches overseas as of 31.03.2012. Indian Overseas Bank has an ISO certified in-house Information Technology department, which has developed the software that 2650 branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% CBS status for its branches. IOB also has a network of about 1300 ATMs all over India and IOB's International VISA Debit Card is accepted at all ATMs belonging to the Cash Tree and NFS networks. IOB offers internet Banking (E-See Banking) & Mobile Banking and is one of the banks that the Govt. of India has approved for online payment of taxes. The bank's business more than doubled in the last four years. According to "A profile of banks (2009-10)" published by RBI, the bank's deposits increased from Rs.50529crore as on 31.03.06 to Rs.110795crore as on 31.03.10 and advances from Rs.34756crore to Rs.79004crore

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CHAPTER -3
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REVIEW OF LITERATURE

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3.1.HISTORY OF STUDENT LOANS IN INDIA:

Education is the essence of life. To ensure that no deserving student is denied
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way. The basic aim or idea behind education loan is to bring education within the reach of students and help them improve their prospects in life. Any student who has secured admission in an institute of repute, whose degree/diploma is recognized by University/Institute affiliated to any Central/State Statutory Body or recognized by AICTE (All India Council of Technical Education) and other institutes of repute, is eligible for educational loan. Education loans cover cost of the school/college fee, hostel expenses, and cost of books and stationery. Apart from this, any other expense required to complete the course can also be considered. The maximum amount of education loan is up to Rs. 7.50 lakh in case of studies in India and Rs 15 lakhs for studying abroad. The sum of money offered is against a third-party guarantee. The third-party guarantee can come from an uncle, neighbor or friend standing guarantee for the full amount of the loan. On an average, an education loan has to be repaid over a period of 5 to 7 years, with the provision of a grace period of one year after completion of studies. The loan money has to be repaid within 84 months in equated monthly installments (EMIs), commencing 12 months after course completion or 6 months after getting the job, whichever is earlier. In case of overseas study loan of 7 lakhs or above, the sum of money is usually given against fixed deposits, NSC certificates and property worth the loan amount.

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3.2.GENERAL INFORMATION
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The exact rate of interest for education loan differs from one bank to the other. However, it usually varies from 10 to 15 percent.

Apart from the fee of the course, a list of other expenses is also covered by education loans. However, the list depends upon the bank from which you are taking the loan.

Education loan can be offered at fixed as well as floating interest rate. The interest is usually charged on a daily or monthly reducing balance.

Generally, nationalized banks have been seen to offer variable interest rates, while private and foreign banks charged fixed interest rates on education loans.

While applying for education loan, you will have to pay a percentage of the loan amount, as processing fee.

In most of the cases, the entire fee for a course is not financed by the bank. A certain proportion, called margin, has to be paid by the applicant. The margin requirements on education loans are not very rigid, with the average being 5 percent for studying in India and 15 per cent for abroad.

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3.3.TYPES OF EDUCATIONAL LOANS:

We come across several types of educational loans that are more suitable for
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different types of educational plans Distance educational loan. Education grants. Special education grants. Financial institution loan. Under graduate student loan.

3.4.Eligibility Criteria

The applicant should be an Indian national. He/she must have secured admission to professional/technical courses, through entrance test/selection process

He/she should be around 16-26 years of age or any other range specified by the bank.

He/she should not be a minor. He/she should have a good academic track record. He/she should have parents or guardians with stable source of income. He/she should have secured admission to a recognized university in India or abroad.

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3.5. Documents Required

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Mark sheet of last qualifying examination for school and graduate studies in India

Proof of admission to the course Schedule of expenses for the course Copies of letter confirming scholarship, if any Copies of foreign exchange permit, if applicable 2 passport size photographs Statement of Bank account for the last six months of borrower/parents Income tax assessment order, not more than 2 years old Brief statement of assets and liabilities of borrower/parents If not an existing bank customer, Proof of Identity and Residence Two passport size photographs

Student loans in India (popularly known as Education loans) have become a popular method of funding higher education in India with the cost of educational degrees going higher. The spread of self-financing institutions (which has less to no funding from the government) for higher education in fields of engineering, medical and management which has higher fees than their government aided counterparts have encouraged the trend in India. Most large public sector and private sector banks offer educational loans.

The education loan growth rate in public sector banks (PSBs) is witnessing a continuous declining trend. While the number of education loan accounts are increasing, the year-on-year growth rate has been showing a declining trend both in number of accounts as well as in the amount. The total outstanding education loans of PSBs as on March 31, 2011, stood at Rs 43,074 crore in 2,235,532 accounts. The education loan amount was Rs 4,550 crore in 319,337 accounts as on March 31, 2004.
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The growth rate in the education loan amount went up by 47.54 per cent and 49.14 per cent in 2005 and 2006, respectively. However, it has seen a continuous decline Page | 26 after that. The growth rate of education loan outstanding amount as on March 31, 2011, went down to 20.90 per cent

As on March 31st No. of accounts 2004 2005 2006 2007 2008 2009 2010 2011 319,337 468,207 679,945 944,397 1,246,870 1,603,385 1,928,350 2,235,532 Amount outstanding 4,550 6,713 10,012 14,283 19,817 27,646 35,628 43,074

Year-on-year growth (%) No. of accounts 46.62 45.22 38.89 32.03 28.59 20.26 15.93 Amount 47.54 49.14 42.65 38.75 39.51 28.87 20.9

Source: IBA (PSBs)

Similarly, the growth rate in number of accounts has also fallen from 46.62 per cent at the end of March 2005 to 15.93 per cent at the end of March 2011. At present, the model education loan scheme allows loan up to Rs 10 lakh for students in India and up to Rs 20 lakh for the students studying abroad. For a loan up to Rs 4 lakh, co-obligation of parents is required and for loans above Rs 4 lakh and up to Rs 7.5 lakh, co-obligation of parents together with collateral security in the form of suitable third party guarantee is required.
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In case of loans above Rs 7.5 lakh, co-obligation of parents together with tangible collateral security of suitable value, along with the assignment of future income of the student for payment of instalments is necessary.
Page | 27 The rate of interest for loans up to Rs 4 lakh is BPLR and for loans above Rs 4 lakh,

one per cent more than BPLR is charged by the banks.

3.6.EDUCATION LOAN AT INDIAN OVERSEAS BANK: Purpose :

Loan is made available for Graduation/Post graduation/Diploma/Computer education in any recognized State/Central Government/University, professional courses including Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, courses like ICWA, CA, CFA, etc., courses conducted by IIM, IISC, XLRI, NIFT etc, courses offered in India by reputed foreign universities/Evening courses of approved institutes, regular degree/ diploma courses like Aeronautical , Pilot training , shipping etc approved by Director General of Civil Aviation/ shipping if the course is pursued in India. Incase the course is pursued abroad, the institute should be recognized by the competent local aviation/ shipping authority. For studies abroad, loans will be made available only for Graduation and Post Graduation Courses offered by Reputed Universities and not for diplomas
Indian Overseas Bank Provides Education Loan, for eligible Indian students studies in India and Abroad. Indian Overseas Bank Education Loan Interest rates vary depends on the total Loan sanctioned and type of Course. Indian Overseas Bank Provides Education loan of 4 lakhs to 10 lakhs for Indian Education courses of Graduation and Post graduations. For Abroad studies the loan will be up to 20 lakhs. You can have the complete details on Indian Overseas Bank Education loan, Interest rates, Documents required while submitting the application form, Schemes, courses, re-

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payment and eligibility for Indian Overseas Bank Education loan for student to study in India & abroad
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Indian Overseas Bank Education loan interest rates, terms and conditions
Indian Overseas Bank Education loan starts form 4 lakhs and the max loan scheme is 10 lakhs for Education in India. And up to 20 lakhs for study abroad. Students, who want to take loan amount of 4 lakhs , no need to give any security. Indian Overseas Bank Education loan re-payment period is 5-7 years. For more than 4 lakhs and up to 7.5 lakhs of Education loan, student have to give third party guarantee to re payment of Education loan along with parents(Third party) Salary documents, Bank balance sheet and other Property proofs. For more than 7.5 lakhs and up to 10 lakhs, Indian Overseas Bank executives will check all necessary documents, according to Indian Overseas Bank Education loan terms and conditions to provide loan as per parents future Income and type of course selected by student. Up to 20 lakhs education loan(only for foreign studies), students have to submit all documents with proof of admission in college, according to Indian Overseas Bank terms and conditions

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Indian Overseas Bank Education loan Interest Rate:

For 4 lakhs of Indian Overseas Bank loan, students have to pay 12.75% per
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year and the amount of above 4 lakhs and below 7.5 lakhs need to pay 14.00% of interest. Candidates, who got more than 7.5 lakhs and up to 20 lakhs, have to pay interest rate of 13.75% per year. You can have the below chart to get conclusion on Indian Overseas Bank Education loan Interest rate. 4 Lakhs- 12.75% p.a 4 lakhs to 7.5 lakhs- 14.00% p.a Above 7.5 lakh 13.75% p.a

Margin Margin For loans upto Rs. 4.00 lakh Nil

For loans above Rs. 4.00 lakh Studies within India 5% For studies abroad 15% Scholarship/assistantship to be included in margin.

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SECURITY:

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Security For loans upto Rs. 4.00 lakh Co obligation of parents . No security For loans above Rs. 4.00 lakh and up to Rs.7.50 lakh Co obligation of parents together with collateral security in the form of suitable third party guarantee. For loans above Rs.7.50 lakh Co obligation of parents together with tangible collateral security .Collateral security in the form of NSC /KVP/ LIC Policy/ Gold/ Shares/Debentures or immovable properties Bank Deposits in the name of student/Parent/Guardian or any other third party with suitable margin. Wherever the land/ building is already mortgaged the unencumbered portion can be taken as security on second charge basis provided it covers the required loan amount. In case the loan is given for the purchase of computer , the computer has to be hypothecated to the bank..

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Indian Overseas Bank Education Loan courses:

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1. Regular Professional and Technical Education courses of Graduation and Postgraduation studies, which are approved by AICTE/UGC/Government of India. 2. Aeronautical, Shipping degree and Diploma courses 3. Teacher Training and Nursing Courses, approved by state government or central govt of India. 4. Job oriented professional courses for abroad studies 4. Degree/Intermediate courses

Indian Overseas Bank Education Loan covers:

Indian Overseas Bank Education Loan in India and foreign includes College fee, exam fee, building fee and other fees like library/lab etc. With this Education loan you can purchase any 2-wheeler. You can have the complete expenses and how this Education loan helps you to study in India and abroad Examination fee Tuition Fee 2-Wheeler/travel expenses Laboratory/Library fees Books and other Equipment charges Purchase Computer/Laptop Insurance Hostel Fee etc

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Documents required while applying for Indian Overseas Bank Education loan to study in India and abroad:
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Students have to submit the following documents to get Indian Overseas Bank Education loan. Candidates have to fill the Indian Overseas Bank Education loan application form and must include relevant necessary documents of latest last 2 months salary slip of parent and income tax assessment sheet. Student have to attach one set of Education qualification certificates of his/her last studies like 10th class and Intermediate etc. you can have the complete details on Indian Overseas Bank Education loan documents need to submit to approve/get loan. Income Proof-Any either salary slip/other Residency proof Education Certificates of SSC, Intermediate and other necessary, if required. Income tax assessment of last 2 years Last 6 months of Bank account balance sheet Latest 2 passport Photo graphs Admissions proof in college Passport/Visa

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Repayment: 1. After 1 year completion of course or After 6 months of getting job,

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whichever is happen earlier? 2. Loan re Payment period is commencement of 5-7 years

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CHAPTER-4.
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ANALYSIS AND INTERPRETATION

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No.of student benifited

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ANALYSIS AND INTERPRETATION

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93.10INR 20 Apr 2012 Price Change (% chg) Rs-2.30 (-2.41%)Prev Close Rs93.10 Open -Day's High Rs95.50Day's Low Rs92.50 Volume 74,782Avg. Vol 58,127 52-wk High Rs164.20 52-wk Low Rs72.85 IOBK.BO

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ABOUT
Indian Overseas Bank (IOB or the Bank) provides various banking services, including saving bank, current accounts, credit facilities and other services. The Bank operates in four segments: treasury, corporate/wholesale banking, retail banking and other banking operations. The Banks Page | 38 services also include personal banking...

BUY/SELL

93.10INR
20 Apr 2012

Price Change (% chg)

Rs-2.30 (-2.41%)
Prev Close Rs93.10 Open -Day's High Rs95.50 Day's Low Rs92.50 Volume 74,782 Avg. Vol 58,127 52-wk High Rs164.20 52-wk Low Rs72.85

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CONSENSUS RECOMMENDATIONS Company Fiscal Year End Month

Page | 39 Consensus Recommendation

Hold

Next Earnings (approx.)

Last Updated

--

March

21 Apr 2012

ANALYST RECOMMENDATIONS AND REVISIONS 1 Month Ago 2 Month Ago 3 Month Ago

1-5 Linear Scale

Current

(1) BUY

(2) OUTPERFORM

(3) HOLD

(4) UNDERPERFORM

(5) SELL

No Opinion

Mean Rating

2.89

2.89

2.62

2.12

Page 39

Page | 40

ANALYSIS
Sales and Profit Figures in India Rupee (INR) Earnings and Dividend Figures in India Rupee (INR)
# of Estimates Mean High Low 1 Year Ago

SALES (in millions)

Year Ending Mar-12

66,439.20

69,153.00

64,404.00

48,748.50

Year Ending Mar-13

76,457.70

79,542.00

73,538.00

62,450.00

Earnings (per share)

Year Ending Mar-12

11

15.76

25.02

11.50

23.03

Year Ending Mar-13

10

22.57

28.60

15.80

33.50

LT Growth Rate (%)

5.00

5.00

5.00

34.90

HISTORICAL SURPRISES
Sales and Profit Figures in India Rupee (INR) Earnings and Dividend Figures in India Rupee (INR)
Estimates vs Actual Estimate Actual Difference Surprise %

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SALES (in millions) Quarter Ending Dec-11 14,645.30 13,871.50 12,845.10 12,485.00 10,400.50 16,326.40 16,935.60 11,876.30 15,997.50 14,814.10 1,681.07 3,064.07 968.83 3,512.50 4,413.56 11.48 22.09 7.54 28.13 42.44

Page | 41 Quarter Ending Sep-11

Quarter Ending Jun-11 Quarter Ending Mar-11 Quarter Ending Dec-10

Earnings (per share) Quarter Ending Jun-11 Quarter Ending Mar-11 Quarter Ending Mar-10 Quarter Ending Dec-09 Quarter Ending Sep-09 5.40 5.30 3.20 6.00 5.75 3.32 7.88 2.34 1.87 4.74 2.08 2.58 0.86 4.13 1.01 38.52 48.68 26.88 68.83 17.61

FUTURE ESTIMATES TREND

Sales and Profit Figures in India Rupee (INR) Earnings and Dividend Figures in India Rupee (INR)
Current 1 Week Ago 1 Month Ago 2 Month Ago 1 Year Ago

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SALES (in millions)

Year Ending Mar-12

66,439.20

66,439.20

66,503.30

66,503.30

48,748.50

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Year Ending Mar-13 76,457.70 76,457.70 76,538.40 76,538.40 62,450.00

Earnings (per share)

Quarter Ending Mar-12

15.76

15.76

15.82

15.82

23.03

Quarter Ending Mar-13

22.57

22.57

22.65

22.65

33.50

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SUMMARY
Last Week Last 4 Weeks

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Number Of Revisions: Up Down Up Down

Revenue

Year Ending Mar-12

Year Ending Mar-13

Earnings

Year Ending Mar-12

Year Ending Mar-13

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OVERALL
Beta: Market Cap (Mil.): Shares Outstanding (Mil.): Dividend: Yield (%): FINANCIALS
IOBK.BO Industry Sector

1.35 Rs74,200.53 797.00 5.00 5.37

P/E (TTM): EPS (TTM): ROI: ROE:

5.71 16.31 ---

19.31 -0.00 5.60

35.74 -0.89 5.12

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CHAPTER-5

SUGGESTION AND CONCLUSION

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5.1.SUGGESTIONS FOR EDUCATION LOAN SYSTEM

The educational loan system can be improved by providing a loan with absolutely zero interest. This will help the students to attract more towards higher education. The higher education is the best way to develop the economic strength of our country. Even though there is subsidy provided by central government, the loan at free of interest will be better. This should be done with proper analysis on the economical background of students. Another problem is the misuse of educational loans by some people for other purposes. This can be avoided by providing loan directly to the college. In this method, the loan amount will be directly transferred to the college account with full security. This scheme is not always possible due to many reasons. The formalities needed for getting an educational loan should be reduced in a proper way.

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CONCLUSION

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5.2.Conclusion
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The educational loan is very much useful for the students. The educational loans are always aims the carrier development of the students. The government is also providing several opportunities for studying in a better atmosphere. This opportunity should be utilized by the students for getting good education in a good educational institution. The students who like to get admission in foreign universities should be very careful in selecting the educational institutions. This because, these students are taking large amount as loan for studying. This loan is available with collateral security only. Hence, a small fault in the selection procedures may lead to lose the future of the student. A proper approach towards the education will bring a great success to everyone. This will greatly influence on the development of our country. The educational loans should be refund by students after getting a job. And moreover, each student will be always thankful to the bank and our country for providing all the facilities for our studies. Finally, you need to hit on the right bank with the right educational loan scheme to suit your needs. Parameters to weigh the alternatives are many; as in, whether the bank provides loan for the course you are opting for and if yes, then up to what extent, the margin and security requirements, the rate of interest, proximity of bank to your residence, et al. The discretion is yours after a thorough analysis.

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Annexure BIBLIOGRAPHY
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1.Book Referred :

.
2. Daily News Papers : EDUCATION TIMES TIMES OF INDIA ECONOMIC TIMES CAREER CHRONICLE

4. Websites :

www.guide2educationloan.com www.indiaeducation.com www.hindusthanlink.com www.bharatbook.com www.indweb.in www.indian overseas bank.com

www.iob.in Vidya_jyoth-aspx

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