CREDIT PERFORMANCE OF THE PRIVATE AND PUBLIC SECTOR BANKS TOWARDS THE EDUCATIONAL LOAN ? A COMPARATIVE STUDY

Educational loan form a part of the priority sector advances offered by the commercial banks and most of the educational loans are taken for pursuing higher educational courses in India and abroad. In the present scenario the higher education has gained significance all across the world. The India also faced financial crisis in the early nineties and higher education suffered in terms of allocations of credit for this sector. The pursuit and access ratio of higher education is huge, in this regard the private institutions entered the field and there has been steep rise in user charges in most sought of the professional courses like engineering and management in India in the post-reforms period. In the light of the facts that scholarships going to higher education have declined, in real terms, and it is a fruitful one for upward the higher education to the below poverty line students, the educational loan scheme comes in to focus in order to raise access ratio in higher education. This paper is a humble attempt to review its performance of allocation of credit to higher education during the period 2002-03 to 2011-2012 in India.