Taking a cue from the Reserve Bank of India, state-run Canara Bank, Corporation Bank and Allahabad Bank cut lending rates on Tuesday, while other public sector players are expected to followith similar moves over the next few days.

The Finance Minister P Chidambaram has stated that more than 12 lakh students all over India have taken benefits of an education loan and the more than Rs. 16,000 crore were disbursed to the needy students. He disclosed this information while inaugurating the 1008th branch of Vijaya Bank Rangiyam in Tirumayam taluka. The Minister praised the bank's efforts towards achieving fast growth and expansion of its branch network.

Financing costly professional courses is set to become cheaper for students from modest middle class homes. A Rs 4,000-crore plan is in the works that will enable the government to take over the interest burden on education loans during the 'moratorium period' - the time when students are pursuing academics and have not yet begun earning.

In the last few years the property market in India has undergone a major transformation, and in some ways aligned itself with global standards. The developer community has become more professional, ensuring better quality and timely delivery. Besides the residential sector, the commercial and retail sectors have also grown at a healthy rate.

However, there is still a huge demand-supply gap in the housing sector. Consequently, the real estate market that has grown at a galloping pace in the past is expected to maintain the momentum in the future. Most of the times we compare education loan rates to compete the various banks and exclusive offers given by them.

The mindset of the Indian customer, as far as taking a loan is concerned, has undergone a change. Unlike the cautious or even negative outlook on loans a few years ago, today, the consumer has a far more positive and open outlook on taking a loan. He feels that taking a loan enforces on him a sense of greater financial discipline, as he is bound to use a part of his salary to pay the Equated Monthly Installments (EMI), rather than spending on things on an ad-hoc basis. He also prefers it to other options such as borrowing from friends and relatives, because in his mind, taking a loan is about being self-reliant, and this gives him a greater sense of self-respect.

Although anyone thinking about taking a loan out needs to give careful consideration to affordability and necessity, often taking out a loan in order to fund your further education can be looked upon as an investment.

Students who want to enroll for a NIIT course can now get easy financial assistance as education loan from Oriental Bank of Commerce (OBC) Premier information technology education provider in India NIIT has tied up with OBC to extend such loan facilities to its students.

Career program of over one year duration can be funded using loans from OBC. The bank will provide education loans up to 1.24 lakhs and will be available under the bank's regular education loan scheme. In addition to it, the loan will also provide a free personal accident cover of up to Rs. 15 lakhs.

It's not just the students who will benefit, working executives undergoing career improvement courses from NIIT Imperia will also be able to avail a loan up to Rs. 2 lakh who are enrolled for management programs.

Oriental Bank of Commerce offers education loans for both study in India and foreign university courses. For loans up to Rs. 4.00 lakhs, the bank requires no collateral or security for its educational loan.( The amount of loan available for NIIT students is Rs. 1.24 lakhs and 2.00 lakhs respectively, so this category applies to them). However, there is a compulsory co-obligation requirement of parents or guardians. The bank charges up no margin money for an education loan up to Rs. 4 Lakhs.

HDFC Bank has a definite plan to grow its compare education loan business. The bank, which started offering education loans just about six months back, is aggressively tying up with several education and training institutions to offer loans to students. The bank intends to grow its education loan portfolio significantly in the next few years.

The bank is looking to tap an emerging set of students who are increasingly going for vocational training. "We have already entered into agreements with some 15 such vocational and software training institutes for offering loans to students," HDFC Bank country head for retail assets Pralay Mondal told reporters here on Wednesday.

Along with growing awareness about the importance of education to succeed in a knowledge economy, the cost of quality education, too, is growing fast.

Happily for the students, though, more parents are willing to bear that extra cost to fund their higher education.

The importance of education loan cannot be understated, given that it is the most cost-effective means of funding education if you are unable to get a full scholarship or do not have a generous aunt or uncle willing to sponsor your education.

Indeed, a large number of students, especially those pursuing professional courses in the country or abroad, are availing of education loans. Do n't forget to compare education loan being offered by all major banks here in India.

A seminar on "Higher Education in the US: Procedures, Financing & US Visa" was organised by Punjab National Bank in association with Indo US Chamber of Commerce on 19th October 2007 at PHD House, August Kranti Marg, New Delhi to educate the students and guardians aspiring to avail Higher Education in US. The seminar was presided over by Dr. KC Chakrabarty CMD of Punjab National Bank and was attended by Dr.Prasad Medury, Regional President, Indo American Chamber of Commerce, Mr. Jane E.Schukoske, Executive Director, United States Educational Foundation in India, Mr. Peter Kaestner, Minister Counsellor for consular Affairs of US & Mr JM Garg, Executive Director of PNB beside other dignitaries. The main focus of the seminar was to provide an overall idea about the Opportunities, Procedures, Financing & Visa requirements involving the concerned agencies on a single platform.

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While delivering the keynote address Dr Chakrabarty spoke on the present scenario of Higher Education in India and abroad specially in the light of new opportunities brought in by the process of globalisation in integration of world economies. Punjab National Bank has been conscious of its social responsibilities and always have been front-runner in financing the focussed segments including agriculture and allied activities, small scale industries (SSI), Priority Sector, Weaker Sector SME sector etc. He emphasised that every meritorious student, even though, poor, must be provided with an opportunity to pursue education with the financial support from the Bank with affordable and friendly terms & conditions.

A government promise to help students repay college loans has fallen prey to fresh differences between the human resource development ministry and the Prime Minister’s Office and may be put off indefinitely.

The PMO and the HRD ministry have come up with their own plans for a student loan scheme in higher education, promised by finance minister P. Chidambaram in this year’s budget, senior government officials.

Neither is willing to accept the other’s proposals, and the HRD ministry’s “hint” that both proposals be executed has not gone down well with the Planning Commission that has allocated funds for the scheme, sources said.

Rajiv Agarwal is young and dynamic. He has done his Graduation in Management from the local Government College a few years back. The financial position of his family, consisting of his retired father, mother and younger brother, made him take up a job in a nearby paint manufacturing unit. He has since been working for three years and is now expecting his first promotion. However, Rajiv is not satisfied with his career graph. He has been continuously hearing the ‘India Shining' story and believes that, given an opportunity, he can also be a part of the powers driving the Indian economy. For this, he is now looking at pursuing Master's course at a reputed institute which would provide him a platform to launch himself.

A quick research about the institutes available and the education cost has startled Rajiv. The best among these institutes is costing over Rs 3 lacs in today's term spread over a two year time frame. Further adding the examination and certification costs, he has to arrange is close to Rs 3.50 lacs. Rajiv was suggested an option -to enroll himself in a lower grade institute where the cost would be significantly cheaper. However, he does not want to do this. He feels it would seriously hamper his future career graph.

A meeting with his long lost friend Smriti opened new opportunities for Rajiv. She had found herself in a somewhat similar situation a couple of years ago and had then opted for an education loan from her bank. This was good news for Rajiv and without wasting much time, driven by his inherent desire to have a budding career, he found himself in the branch office of his bank. After a few discussions and formalities Rajiv was now ready to enroll in the institute he had dreamt of. His bank had arranged to provide the amount desired by Rajiv under their education loan policy against the collaterals offered by Rajiv.

You could soon finance your higher studies through an education loan and yet get away without paying instalments.

If a proposal floated by the Planning Commission is accepted, students can avail of a loan write-off by serving for a while in a government agency. So, a doctor who finances his graduation with the help of a loan can seek a waiver by working in a government hospital for a specified period.

And, it is not just highly skilled workers who can seek a write-off, even a simple graduate can avoid the instalments by teaching in a government institution.

Several dozen University of Wisconsin students and staff assembled at Engineering Hall Tuesday in an international candlelight vigil to protest the Indian government’s neglect of its agricultural farmers and to remember Mahatma Gandhi’s birthday.

According to Asha for Education, a non-profit organization responsible for organizing the event, 150,000 Indian farmers have committed suicide in the last decade as a result of problems created by India’s government.

“If we put the government in an international spotlight, maybe it can get its priorities straight,” Asha for Education Publicity Coordinator Badri Narayan said. “For now we light these candles as a universal symbol of peace. It shows that this is something we need to pay more attention to.”

Chennai, August 24: Good Shepherd College of Hotel Management, Ooty, today announced a tie-up with Indian Bank to offer educational loans for students who want to pursue a Bachelor's Degree in International Business in Hotel and Tourism Management.

The college offers a 'twinning programme' for hotel management in association with Cesar Ritz Colleges, Switzerland.

A student would be able to get 75-85 per cent finance of the total study expenses in India for two years and in Switzerland for the final year, M S Sundara Rajan, chairman and managing director of Indian Bank, told a press conference here today.

Students will be able to avail educational loan to the tune of Rs 15 lakh to Rs 17 lakh and the loan would be repayable in five years after completing the course. The repayment would start only after three months of the course completion or the student getting employed, whichever was earlier, he said.

The course costs about Rs 20 lakh, Dr P C Thomas, managing trustee of Good Shepherd Group of Institutions, said.

Thomas said the loan scheme would go a long way in promoting young talent and also give them a platform to get the best training to pursue careers in hospitality, travel and tourism sector.

Educational loans are very helpful to those poor sections of our population whose children are bright in studies but cannot pursue higher education due to financial problems. These loans are given on very liberal terms by financial institutions. Many students from poor families are availing these loans for pursuing higher studies.

I don't think these loans will in any way affect those students availing it. Of course these loans have to be paid back with interest but the conditions are very liberal. Students' performance is not affected in any way if he or she excels in his studies and gets a good job. It will only affect those students who misuse these loans and do not pursue their studies seriously.

But, I would also like to advice those banks and financial institutions which provide educational loans to carefully analyse those applications for loans and give strict priority to bright students from poor families. Also, my request to those institutions to not to harass in any way any student who has availed the loan while they are pursuing their studies. Also, parents of those students availing educational loans should regularly monitor the performance of their wards so that the money taken as loan is not wasted.

The State Bank of Hyderabad, which planned a public offer of shares around the second quarter of the current fiscal, has put on hold its proposed IPO and has decided to take a final view on the matter in December 2007. “We will review the proposal in December. Currently, it is put on hold”, Amitabha Guha, the managing director of the State Bank of Hyderabad told Business Standard. Meanwhile, the bank approved a loan proposal of the Emami group’s jatropha cultivation project in Orissa. MOU with the company has already been signed and the loan will be provided after completion of formalities, he said. Similarly, it has sanctioned Rs.30 crore for Bhusan Steel and Power and Rs.50 crore to Bhairabi Power. Besides, talks are in advanced stage for providing loan to the Hyderabad based CVR Navyuga group which is planning to set up a greenfield port based power plant at Astarang in Puri. Similarly, it aims to lend Rs.250 crore as educational loan and Rs.1000 crore home loan during the year. Stating that there is going to be further consolidation in the banking industry, Guha said , the licensing system for the foreign banks to enter Indian market will go by 2009.

Punjab National Bank has planned to disburse Rs 100 crores as part of Education Loan up to March 2008 in Punjab (South) Zone. This was stated by ID Singh, General Manager, Punjab National Bank, in a statement issued here today. The GM said that the bank has two popular education loan schemes: Vidyalakshyapurti and Sarvottam Shiksha, he informed. “PNB, under its Vidyalakshyapurti scheme, is providing hassle-free education loans to deserving/meritorious students for enabling them to pursue higher, professional and technical education in India as well as abroad.

We have another scheme, Sarvottam Shiksha, for students who have already secured admission in prominent educational institutions such as IITs, IIMs, Govt. recognized medical colleges and other professional educational institutes relating to biotechnology, physical sciences, banking etc.”

The government plans to subsidise the interest rates of education loans, a step that will surely benefit many students across the country

This Independence Day could be very special for the economically deprived students, who can expect to receive a great piece of news from the Prime Minister himself.

The government is planning to give subsidised loans to lakhs of poor students over the next few years. A series of meetings between the HRD ministry and the PMO has already taken place, and a broad framework has been worked out.

Public sector Punjab National Bank on Wednesday announced to provide easy study loans to students and target Rs 45 crore loan disbursement in this academic session.

"No security, no margin money will be effected to students applying for education loan up to Rs 7.50 lakh for studying in India and up to Rs 15 lakh for studying abroad," PNB General Manager, Rajasthan Zone, S P Singh told a press conference here.

The bank has also come out with reverse mortgage scheme, PNB Baghban, for the senior citizens, he said.

PNB would hold awareness camps for education loan at engineering and professional colleges in the state, he said.

With PNB, there are more banks who provide education loan to students. As a student we need to compare education loan scheme offered by banks and go for the scheme that suits us.

If you're planning an MBA from any of the IIMs or Indian School of Business besides enrolling for a coaching class, you might do well to spend some time thinking how you are going to fund these courses. Given the steep fees at these institutes, you might have to avail of an educational loan. And while this might conjure up images of endless paperwork and several trips to the bank, the truth is that it is rather easy.

All you need is your parents' signatures as guarantors and in 3-4 days, the bank could well have disbursed your loan. Once you are in the loan market, there are plenty of deals. Some extra leg-work might be useful in helping you get discounts, which could help save on a sizeable sum.