Role of Education Loan in Indian Higher Education
Tiwari, R., Anjum, B. (2013). Role of Education Loan in Indian Higher Education, GALAXY International Interdisciplinary Research Journal, 1(2), 89-96.
10 Pages Posted: 3 May 2021
Date Written: December 31, 2013
The paper explores the role of educational loans for development of human capital in India. For a country with the largest population of young people (704 million), combined with a poor gross enrollment ratio, availability of educational loan is a necessity to ensure supply of skilled manpower for the economic progress of the country and to improve wealth distribution. The move towards privatization of higher education and poor budgetary support further increases the importance of educational loans for the country. For every 1% rise in GDP, demand for education loan rises by 3% (Chakraborty, 2011). In spite of consistent rise in outstanding amount and accounts of educational loans the issues of poor access to banking services, complaints regarding rejection of loans by banks and neglect of vocational education require urgent attention by the stakeholders. The proactive and student friendly approach by the new finance minister provides hope to millions of deserving students to get access to educational loans. The paper concludes with recommendations on enhancing the utility of the educational loans to improve access and employability of the students.
Keywords: GDP, Gross Enrollment Ratio, Access, Employability
JEL Classification: I22
Suggested Citation: Suggested Citation