Volume : 2, Issue : 1, January - 2013

Efficacy of Educational Loans: Employability of the Borrowers is the most Important Predictor

Varghese K. X. , Dr. Manoj P K

Abstract :

Educational Loans in India have become available to the needy students by the introduction of the Educational Loan Scheme of the Public Sector Banks in India in 2001. The private sector and cooperative sector banks also joined the fray. This paper examines the efficacy of educational loans on a sample of 600 borrowers in Ernakulam District in Kerala state of India who have completed their studies availing EL during 2004 to 2009 by analyzing the criterion variable, satisfaction level with predictor variables such as the placement obtained or not, has the loan helped in studies, whether the loan was adequate and Would the beneficiary recommend others for EL. It has turned out that the best predictor variable is the placement obtained or not(employability).