Loan not a challenge for management students either

For those students who secure merit seats in professional courses, getting educational loans has not been a big challenge. But banks have not been enthusiastic about helping the not-so-bright students with loans. However, things are fast changing now, with banks now coming up with loan programmes to help students who secure management seats in Indian and foreign universities for graduate and post-graduate courses, if they have the a burning desire to pursue higher studies in their chosen fields.

“We have opened up our education loan programmes for those who secure management seats too. If a student wants to go abroad for higher education, he/she will be eligible for a loan of `30 lakh and for Indian universities he/she will be eligible for `20 lakh,” said M Narendra, chairman and managing director of Indian Overseas Bank (IOB).

Narendra said: “Brilliant students will get into the educational programmes they desire on merit and with help from college managements which offer scholarships. But those who score less will have to depend entirely on private funding. The environment in educational loan market has been changing towards aiding students even with marks.” According to a study conducted by the Indian Banks’ Association (IBA), those students who could not secure merit seats get serious at post-graduate, doctoral and post-doctoral levels. Vijaya Bank officials confirmed that they too have a loan programme for those who secure management quota seats in various streams in Indian and foreign universities.

With universities in UK, US, Australia and Russia opening admissions to Indian students for various streams, particularly Russian universities that offer courses in nuclear physics and US varsities offering management studies, the cost of education could go up to `30-35 lakh. Cost of post-graduation in foreign countries in basic science and technology subjects is lesser compared with the cost in India. Banks have put a ceiling at `30 lakh for a loan for those who secure management seats in for foreign universities.