Abstract
Education loan is a magical solution to address the education financing crises. It bridges the gap between accessibility and sustainability but incidents of defaults in the repayment of education loan are on rise. The Present study covers various theories has been thoroughly analysed to understand the factors which influence the intention of student to repay the education loan. A comprehensive theoretical framework has been designed by reviewing various literatures on student intention. This structural framework encompasses - Attitude to repay or default of education loan, Integrity, Parental influence, awareness of loan agreement, Willingness to invest in educational plans, Student’s characteristics, Financial ability to pay and student’s priority from Theory of reasoned action, Theory of Planned behaviour, Theory of human capital and Theory of ability to pay. In this research study, all efforts have been made to determine the possible linkage between factors that influence student’s intention to pay or default the education loan.
Highlights
Educational loan is the medium via which students having the goal to achieve excellence in academics with the future career at stake of employment so that they can service their debt and avail the deduction of interest under Income tax Section 80E
Financing students to avail collateral free loans upto Rs. 4.00 lakhs comes under the Govt Scheme under Vidya Laskhmi Portal and is available for each and every individual even those who come under LIG and MIG while amount beyond 4 lakhs, student have to provide collateral and a third party guarantee(the parents of the loan applicant student)
On the flip side the increasing the market share of Education loans of the commercial banks leads to higher delinquency rate as most of the loans are collateral free Govt provides subsidy to LIG under its scheme of CSISS (Central Sector Interest Subsidy Scheme 2009) through its nodal CANARA Bank whose annual income is not more than Rs. 4.50 lakhs pa
Summary
Educational loan is the medium via which students having the goal to achieve excellence in academics with the future career at stake of employment so that they can service their debt and avail the deduction of interest under Income tax Section 80E. On the flip side the increasing the market share of Education loans of the commercial banks leads to higher delinquency rate as most of the loans are collateral free Govt provides subsidy to LIG under its scheme of CSISS (Central Sector Interest Subsidy Scheme 2009) through its nodal CANARA Bank whose annual income is not more than Rs. 4.50 lakhs pa. Students can avail education loans to enrol and pursue the dream of studying higher education from renowned institutions in India and abroad. McWade (1996) delineated that student must consider five facets before opting for education loan They are earning in future, required time for repayment, rate of interest charged, planning of lifestyle after studies and unanticipated situations that may affect the future earning or repayment ability. Theories based determinants driving students’ intention towards loan repayment or towards default have been analysed
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
