An Analysis of Perceptions of MBA Students on Educational Loans

Education helps men and women claim their rights and realize their potential in the economic, political and social arenas. It is also the single most powerful way to lift people out of poverty. India has a very large population of young children who look up for higher education. The number and percentage of students enrolling for higher education and professional courses are far below the world average. Poverty among the lower and middle class parents is the major factor inhibiting students from availing higher education. Banks in India play a major role in promoting higher education by extending educational loans to the needy students. Indian Banks Association has designed the student loan to help students pay for university tuition, books, and living expenses. This study has been undertaken to analyze the details of educational loan scheme in different banks, usefulness of educational loans to the MBA students, difficulties faced in availing educational loan, to know about the attitude of parents towards educational loan and the perceptions of the beneficiaries on the various dimensions. The methodology used for the study is Descriptive and Exploratory Research that aims to know the impact of educational loan of public sector banks on MBA Students. The method of research followed is the survey method, wherein a structured questionnaire was served to the selected sample. The sampling size of the research is 93. The major findings of the study are that the proportion of girl students is less compared to boys in availing bank loans, bank loans increase the feeling of responsibility among students, public sector banks are liberal than their private counterparts in extending the loans and the beneficiaries feel that the loan procedures are still cumbersome. A few suggestions are arrived at the end of the study to improve upon the existing scheme.