SJIF Impact Factor 2021: 8.013| ISI [Link].241| Journal DOI: 10.

36713/epra2016 ISSN: 2455-7838(Online)

EPRA International Journal of Research and Development (IJRD)
Volume: 6 | Issue: 6 | June 2021 - Peer Reviewed Journal

STUDENTS PERCEPTION ON EDUCATIONAL LOAN

WITH SPECIAL REFERENCE TO COIMBATORE
DISTRICT

Mr. Nishanth Kumar H1, Ms. P.Maheswari2

1
Student of III [Link], Department of commerce, Dr. N.G.P Arts and Science College (Autonomous) ,
Kalapatti Road, Coimbatore- 641 048
2
Assistant Professor, Department of Commerce, Dr. N.G.P Arts and Science College (Autonomous) ,
Kalapatti Road, Coimbatore- 641 048

ABSTRACT
This project is about the students perception on educational loan with special reference to Coimbat ore district.
The data has been collected from 115 students in Coimbatore district by applying convenient sampling technique.
Statistical tools such as percentage analysis, chi-square analysis, weighted score analysis and ranking analysis have
been used to analyse the data. The study has attempted to cast light on the students perception towards educational loan
with reference to Coimbatore district.
KEYWORDS: Loan, Students, Education.

INTRODUCTION nationalized and Private sector banks come forward to

Education is the process, which enables an grant the educational Loan to the need subject to some
individual to adjust himself to the environment. A condition.
present day economist is inclined to think
“EDUCATION” as a process which makes man OBJECTIVES
economically creative member of the society. The o To know the source of awareness towards
subject matter of education is more important. The educational loan among the students.
word “Education” is derived from the Latin educate, o To study the various factors that influences the
meaning “To nourish” or “To rise”. University provides students to avail the educational loan.
not only trained manpower but also improve, functional
efficacy of more engaged in different kinds of SCOPE OF STUDY
productive work, that i.e., it makes values contribution The study will be beneficial to the students and
to the acceleration of development. Education is vital to banks for the timely disbursement of adequate finance to
human resource and their empowerment in any country. the needy students so that they can attain their higher
education dream in this globally competitive
STATEMENT OF THE PROBLEM environment. By understanding the needs of the
Cost of the students find so different to just students and benefits of quality education, granting
enter into the Field of education from which they can loans for higher education, which should be seen as an
gain more Knowledge. Some more students discontinue investment for economic development and prosperity.
their Education because of lack of money to meet the The results of the study would act a feedback to the
cost of Education. The problem of the money, which regulators so that they can correct their pitfalls and
prevails among the students in solved to the thereby they can motivate the Indian banks in

2021 EPRA IJRD | Journal DOI: [Link] | [Link] |310 |

 SJIF Impact Factor 2021: 8.013| ISI [Link].241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
EPRA International Journal of Research and Development (IJRD)
Volume: 6 | Issue: 6 | June 2021 - Peer Reviewed Journal

implementing the educational loans scheme, without repayment of loan and the students availed
hurting the interest of the students. The present study educationalloan in India to study abroad.
incorporates all the important aspects related to
educational loan in student perspectives. LITERATURE REVIEW
o Jayadev.M(2017)34, in the article titled “ An Analysis
RESEARCH METHODOLOGY of Educational Loans”, found that educational loans are
In this study have been comprised both a relatively new phenomenon when it comes to funding
descriptive & analytical methods. The Primary data higher education in India. There has been a significant
have been collected from the respondents are rise in the volume of outstanding educational loans
beneficiaries of the study. The secondary data have with an annual growth rate of 12% since March 2008.
collected from the journals, magazines, newspaper, Banks are concerned about increasing non-performing
website and so on. assets with respect to educational loans. This paper
 Sampling Design argued for a statutory framework that addresses all
The researcher has been collected the aspects of funding higher education through loans and
data from 115 respondents in students scholarships.
perception on educational loan in Coimbatore
city. o Geetha Rani. P (2016.)33, in the article titled
 Geographical Coverage “Financing Higher Education and Education Loans in
This study covered in Coimbatore city only. India Trends and Troubles “, attempts to investigate the
trends in financing higher education which convey that
LIMITATION OF THE STUDY student loans is the dominating source of financing
 Geographical area is restricted to Coimbatore higher education in India. It is concluded that fees,
District scholarships and student loans need to be examined in
 The sample size has been restricted to only 115 the context of increasing cost and role of markets in
respondents for educational loan availed from higher education along with affordability within the
both public and private sector banks due to time domain of family characteristics.
 The study does not include the aspects of

 M. Jayadev “An Analysis of Educational Loans” Economic and Political Weekly, Vol. 52, Issue No.51,
December 2017
 P. Geetha Rani “Financing Higher Education and Education Loans in India Trends and Troubles”, Journal
of Social Sciences, December 2016

ANALYSIS AND INTERPRETATION

AWARENESS ABOUT EDUCATIONAL LOAN

FACTORS NO OF RESPONDENTS PERCENTAGE

Friends and relatives 29 25.2
Advertisement 40 34.8
Educational institutions 41 35.7
Bankers 5 4.3
Total 115 100
Source: Questionnaire

INTERPRETATION advertisement,35.7 of them know by educational

The above table shows that how the respondents come to institutions, 4.3%of them know by bankers.
know about educational loan.25.2% of them know by Majority of 35.7% of them know by educational
friends and relatives,34.8% of them know by institutions

2021 EPRA IJRD | Journal DOI: [Link] | [Link] |311 |

 SJIF Impact Factor 2021: 8.013| ISI [Link].241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
EPRA International Journal of Research and Development (IJRD)
Volume: 6 | Issue: 6 | June 2021 - Peer Reviewed Journal

CATEGORY OF BANK FROM WHICH EDUCATIONALLOAN AVAILED

CATEGORY OF BANK NO OF RESPONDENTS PERCENTAGE

Public sector 55 47.8
Private sector 60 52.2
Total 115 100
Source: Questionnaire

INTERPRETATION
The above table shows category of bank from which Majority of 52.2 % of respondents availed
the education loan is availed by respondents. 47.8% education loan from private sector banks
are public sector banks, 52.2% are private sector
banks.

NO. OF VISIT TO BANK

NO OF VISIT NO OF RESPONDENTS PERCENTAGE
Less than 3 times 38 33
3 to 4 times 45 39.1
4 to 5 times 26 22.6
Above 5 times 6 5.2
Total 115 100
Source: Questionnaire

INTERPRETATION them visited 4 to 5 times. 5.2 % visited above 5 times.

The above table shows the no of visit to the bank by Majority of 39.1 % of the respondents visited to the
respondents for getting loan.33% of them visited less banks 3 to 4times for sanctioning the loan
than 3 times,39.1% of them visited 3 to 4 times.22.6 of

2021 EPRA IJRD | Journal DOI: [Link] | [Link] |312 |

 SJIF Impact Factor 2021: 8.013| ISI [Link].241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
EPRA International Journal of Research and Development (IJRD)
Volume: 6 | Issue: 6 | June 2021 - Peer Reviewed Journal

CHI SQUARE ANALYSIS

RELATIONSHIP BETWEEN PARENTAL OCCUPATION ANDSOURCE OF
INCOME TO BEGIN THE COURSE TILL THE SANCTIONING OF LOAN

SOURCE OF INCOME TO BEGIN COURSE

[Link] OCCUPATION TILL SANCTIONING OF LOAN TOTAL
Family Borrowing Friends and Financial
savings from money relatives institution
lenders
1 Daily wages 6 7 4 0 17
2 Government 9 15 8 2 34
employees
3 Private employees 5 21 10 6 42
4 Business 11 8 3 0 22
TOTAL 31 51 25 8 115

To find out the association between the HYPOTHISIS

parental occupation and source of income to begin There is no significant between parental income and
course till the sanctioning of loan to the respondents, source of income to begin the course till the sanctioning
chi square test is used and result is given below. of loan to the respondent.

CHI-SQUARE TEST
Factor Calculationvalue Df Table value Remarks
Parental 15.798a 9 16.92 Accepted
occupation

INTERPRETATION is no significant relationship between occupation and

It is clear from the above table show that, the calculated source of income to begin course till the sanctioning of
value of chi-square at 0.05% level is more than the loan to the respondents.
table value. Hence the hypothesis is accepted. So there

WEIGHTED AVERAGE ANALYSIS

LEVEL OF AWARENESS REGARDING TO THE FOLLOWING ASPECTS OF EDUCATIONAL LOAN

FACTOR 1(5) 2(4) 3(3) 4(2) 5(1) TOTAL MEAN

SCORE
DOCUMENTATION 55 42 11 2 5 115 4.217
PROCEDURE
275 168 33 4 5 485
REPAYMENT 15 60 32 6 2 115 3.695
SCHEDULE
75 240 96 12 2 425
RATE OF INTEREST 36 23 46 3 7 115 3,678

180 92 138 6 7 423

TIME TAKEN FOR 24 46 31 11 3 115 3.669
LOAN SANCTIONED
120 184 93 22 3 422
BORROWINGLIMIT 39 21 39 6 10 115 3.634

195 84 117 12 10 418

2021 EPRA IJRD | Journal DOI: [Link] | [Link] |313 |

 SJIF Impact Factor 2021: 8.013| ISI [Link].241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
EPRA International Journal of Research and Development (IJRD)
Volume: 6 | Issue: 6 | June 2021 - Peer Reviewed Journal

INTERPRETATION Documentation procedure has the highest mean score of

The above table shows the level of awareness regarding 4.217.
the following aspects of educational loan.

RANKING ANALYSIS
FACTORS INFLUENCING AVAILINGEDUCATIONAL LOAN

FACTOR 1(5) 2(4) 3(3) 4(2) 5(1) TOTAL RANK

FAMILY CONDITION I
54 38 23 7 3 115

270 152 69 14 3 508

LATER REPAYMENT III
12 60 32 10 7 115

60 240 96 20 7 423
LOW RATE OFINTEREST II
36 23 53 9 8 115

180 92 159 18 8 457

ADVERTISEMENT IV
20 49 34 12 10 115

100 196 102 24 10 432

BORROWINGLIMIT V
31 29 45 7 10 115

155 116 135 14 10 430

EXPENSESCOVERED VI
24 35 37 17 8 115

120 140 111 34 8 413

20 37 40 13 10 115 VII
LOAN AVAILABLE FOR
STUDY IN ABROAD 100 148 120 26 10 404

INTERPRETATION  Majority 36% are private employees

The above table shows the factors influencing to avail  Majority of respondents 40% of their annual
educational loan. income is 1,00,000-2,00,000
Family condition ranks first, Later repayment ranks II,  Majority of 72% of the respondents are first
Low rate of interest ranks III, Advertisement ranks IV, graduate in their family
Borrowing limit ranks V, Expenses covered ranks VI,  Majority of 35.7% of them know by educational
Loan available for study in abroad ranksVII. institutions
 Majority of 31.3% of them motivated by
FINDINGS asvertisement
 Majority 53% of respondents are male  Majority of 42.6% of them visited the bank less
 Majority 38.2% of respondents are between 16- than 3 times
20 years and between 20-25 years  Majority of 52.2% of the respondents availed
 Majority 71% of the respondents are unmarried educationl loan from privated sectorbanks
 Majority 51% of them are from urban area  Majority of 34.8% of the respondents availed
 Majority 41.7% of them have 3 no of earnings in the loan amount of 2,00,000-3,00,000
their family  Majority of 40% of the banks took 1 to 2 months

2021 EPRA IJRD | Journal DOI: [Link] | [Link] |314 |

 SJIF Impact Factor 2021: 8.013| ISI [Link].241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
EPRA International Journal of Research and Development (IJRD)
Volume: 6 | Issue: 6 | June 2021 - Peer Reviewed Journal

for processing loan students.

 Majority of 32.2% of the respondents availed  It is suggested that the banker should create
loan for less than 5% more awareness through various sources of
 Majority of 39.1% of the respondents visited to media about the factors considered for
the banks 3 to 4 times for sanctioning loan sanctioning education loan that the students
 Majority of 44.3% of the respondents borrowed are unaware of various aspects like period for
from money lenders for source of incone till loan processing, eligibility Criteria, Adequacy
sanctioning loan of loan sanctioned, repayment schedule, third
 Majority of 42.6% of te respondents sanctioned party guarantee, expenses covered, RBI rules
5o to 60% of loan amount and regulations andcollateral securities.
 Majority 48.7% of the respondents recommend
 The Government should initiate more schemes
eductional loan to others sometimes
for education loan to promote higher
education.
CHI SQUARE ANALYSIS
 The hypothesis is accepted. So there is no CONCLUSION
significant relationship between occupation and Education is the backbone of a cultured society,
source of income to begin course till the but it has become more commercial or money-making
sanctioning of loan to therespondents. and in order to ensure the best possible education, it is
 The hypothesis is rejected. So there is a an expensive affair, because the Aided, the
significant relationship between annual income Government and the Self- financing colleges follow
and amount of loan availed by the respondents. different fee level from their students. At the same time
all the students are not supportive of this fee structure.
RANK ANALYSIS So, there is a need of educational loan for their studies.
Ranking analysis shows the facrors The current study attempts to focus on student
influencing to avail educational loan. In that majoruty education loan through banking services which includes
of the respondents availed educational loan because of the role of various banks in providing education loan
their family condition. services and its effect on the education system of
Indian.
WEIGHTED AVERAGE ANALYSIS
1. Documentation procedure has ahigh mean score
of 4.217 in level of awareness about educational
loan
2. Rules and regulation of RBI has the highest
mean score of 4.365 in level of opinion with
banking policy
3. Cibil score plays a vital role in educational loan
has the highest mean score of 3.834
in problems faced in availing and repayment if
educational loan
Websites
 [Link].
 [Link].

SUGGESTIONS
 Government and Aided college students have
got the highest benefit of loan when compared
to the self-finance colleges. Hence it is
suggested that certain
Necessary steps can be introduced to create
awareness and to provide services on
educational loan among self finance college

2021 EPRA IJRD | Journal DOI: [Link] | [Link] |315 |