According to guidelines specified by Indian Banks Association (IBA) banks will assess ‘student’s employability and earning potential’ post their study before sanctioning educational loan. Students who have secured admission to professional/technical courses in India or abroad through an entrance test/merit based selection process will take a higher chance of getting an educational loan.
Increased default rates and NPA ratio is keeping Bank’s on their feet and alert. Bank’s will now be more cautious than before as IBA has circulated a new model scheme to be implemented.
The employability or earning potential is likely to be on the basis of job opportunities a student is likely to get post his or her course, average expected salary, demand for the course and other important parameters. It is highly advisable to all the students to enroll only in recognized courses and ensure there is enough scope for the course in the future.
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