Growth of Education Loan and Non-Performing Assets: A Study of Commercial Banks in Kerala

Dr.K.Gangadharan; Sajith.Kumar.S

Volume : IV, Issue : XI, November - 2015

Growth of Education Loan and Non-Performing Assets: A Study of Commercial Banks in Kerala

Dr. K. Gangadharan, Sajith. Kumar. S

Abstract :

The need for higher education in the social and economic well-being of the citizen and the nation is widely acclaimed. To meet the huge education expenses, students depends on Education Loan. Education loan provides an opportunity to the poor students to attain good education. The objective of the paper is to analyze the trend in education loan and its Non-Performing assets. The demand for education loan and its supply is rising in Kerala during the past few years. Public and Private sector banks are actively promoting higher education through education loan. However, it�s after effects comes in the form of NPAs, which threats the smooth functioning of commercial banks and may reduce their lending capacity. Along with the rise in the availability of education loan, the Non-Performing Assets is also rising. This is bad for both the banks and the economy