A Study on Educational Loan with Specific Reference to
Coimbatore District


By

Dr. A.Vinayagamoorthy
Reader in Commerce
Periyar University
Salem

Mr. K. Subramaniam
Mr. S. Ayyappan
Lecturer's in Commerce
Park's College
Chinnakkarai-Tirupur
 


INTRODUCTION

Education is the process, which enables an individual to adjust himself to the environment. A present day economist is inclined to think "EDUCATION" as a process which makes man economically creative member of the society. The subject matter of education is to develop his personality, for which education is more important.

Higher education provides to trained and knowledgeable personal to the nations. But the number and quality such personnel should be as per requirements. University provides not only trained manpower but also improve, Functional efficiency of more engaged in different kinds of productive work, that i.e., it makes valuable contribution to the acceleration of development.

University education strengthens the pibers of national integration. In a country like India, which has multi-religions, multi-classes and multi sectors. There is a strong need for such education planning which certificates the heterogeneous components.

II STATEMENT OF THE PROBLEM

Education has become very expensive proposition now a day. There are different fees structures are followed by different institutions. The Government fix fees structures for the unaided self finance engineering colleges, aided colleges and government colleges, in addition to the government fees of self finance colleges and in addition to the government colleges fees of every student needs funds to meet the cost of education.

Most of the student find so different to just enter into the field of education from which they can gain more knowledge. Some more students discontinue their education because of lack of finance to meet the cost of education. The problem of the finance, which prevails among the students, is solved to the nationalized and private sector banks come forward to grant the educational loan to the need subject to some condition. It means there is a wide between the demand and supply of the educational loan hence there some users namely why students are not opportunity the bank for educational loan? Are students faces any problem in sanction of educational loan. Do various banks for sanctioning of loan follow any difference between the procedure. Educational loans are offered by 4000 branch of the bank, spread across the country including the personal banking branches. Anyone can take a loan for pursuing studies in recognized schools/colleges/institutions etc., though banks are ready to grand loan to a maximum extend.

III OBJECTIVES OF THE STUDY

In order to find out the solution to the problem raised the present study has carried out with the following objectives.

1. To ascertain the procedure for sanctioning an educational loan.
2. To ascertain the level of satisfaction about the educational loan scheme and procedure among students who have obtained the loan.
3. To identity the factors influencing the level of satisfaction
4. To suggest suitable measure for improving the level of satisfaction among students.

IV HYPOTHESES

The following hypotheses have been framed and tested in the study.

1. There exist no association between age and the level of satisfaction
2. There exist no association between sex and the level of satisfaction.
3. There exist no association between Nature of residence and level of satisfaction.
4. There exist no association between educational qualification and level of satisfaction.
5. There exist no association between monthly in come of respondent father and level of satisfaction.
6. There exist no association between the strength of the respondents and level of satisfaction.
7. There exist no association between occupation of the father respondents and level of satisfaction.
8. There exist association between educational qualification of the fathers respondents and level of satisfaction.

V REVIEW OF LITERATURE

Shatrugna, in his article :Financing higher education" (2004)analysis the review and restructure of the norms for financing the education sector. Since 1950's higher education has been financed, mainly by the central and state governments has financed higher education. After the inauguration of new economic policy 1991, there is a major change in financial commitment of the government. The demand for higher education has been rise over the years from all sections of the society. To examine the pattern of utilization of the grants, the committee recommended that the UGC may find a mechanism of providing an appropriate incentive grant, perhaps in the nature of marching grant as an incentive to universities generating their own resources. The committee recommendations are more or loss the same in regard to the aided deemed universities. While, it is true the expenditure on higher education has gave up over the years, the major expenditure on higher education has gave up over the years, the major expenditure has mostly been on the non-plan side.

Tilak in his study, "funding higher education in India". (2005) Analysis the need for continuation of the crucial role of the state in funding higher education. There is a need to raise more resources in the regard included fees and loans. He observed that the costs of higher education are three components, academic costs, academic costs, academic support cost, and student welfare costs. He argued that the industrial sector was ready to make huge investment in higher education and research development. The state should continue to play the dominant role in financing higher education. There is need to improve the mechanism of UGC and governments growth to universities and institution of higher education. Efforts can be made to raise resources from non-government sources. The conclusion is that all aspects of higher education is grants, costs, fees, cost of recovery scholarship, other direct and indirect subsides, generation of other internal resources etc., should be completely transparent.

Saritha sinha in her study on "women's education in India". (2005)The myth and the reality, analysis the shaping the woman resources for economic development. Educational development and acquisition of vital skills are necessary for woman if they have to play efficiently even the traditional role as wife and mother. Women is now adopting the carrier of her own and sharing equally with him.

DEFINITION OF TERMS

The meaning of the satisfaction is gratification is denotes is the satisfaction of respondents about educational loan. In this study the term satisfaction in used the represent the performance of the students with regard to the educational loan.

SAMPLING

Totally 150 respondents were selected for ascertaining the performance of respondents in various level of satisfaction, the area of the study in Coimbatore.

METHODOLOGY

The study aims at identity the level of satisfaction of the students who has obtained the educational loan of the students. For this purpose primary data were collected by questionnaire method.

FRAME WORK ANALYSIS

There is no direct method available for studying satisfaction among students for the educational loan, hence the questionnaire method was adopted to identify the students satisfaction about the educational loan. The associations between the factors select and satisfaction was studied through chi-square test.

TABLE NO 1

AGE AND SATISFACTION

 

LEVEL OF SATISFACTION

 

LOW

MEDIUM

HIGH

19-20

18(32.72%)

24(43.64%)

13(23.64%)

55(100%)

21-22

16(28.57%)

23(41.07%)

17(30.36%)

56(100%)

23-24

6(15.39%)

28(71.79%)

5(12.82%)

39(100%)

Total

40

75

35

150


D.F:4 Calculated x2 values: 11.24 
Table value at 5% level

The table no : 1 explains the association between age and the level satisfaction. In the first group consists of totally 55 respondents. Out of the 55 respondents 18 respondents are with low level of satisfaction. The level of satisfaction of 24 respondents is medium and 13 respondents are with high level of satisfaction. The second group which comprises of 56 respondents whose age ranges between 21 and 22. Out of total 56 respondents 16 respondents are with low level of satisfaction. 23 respondents are with medium level of satisfaction and 17 respondents are with high level of satisfaction.

The third group, which comprises of 39 respondents whose age ranges between 23 and 24. out of total 39 respondents , six respondents are with low level of satisfaction. 28 respondents are with medium level of satisfaction and five respondents are with high level of satisfaction.

It could be seen from the table the, the percentage of respondents with low level of satisfaction is high with those respondents whose age ranges between 19 and 20, and the percentage of respondents with medium level of satisfaction is high with those respondents whose age ranges between 23 and 24.

As the calculated c2 value is greater than the table value at 5% level of significance, the null hypothesis is rejected. Hence it could be inferred that there exist.

TABLE NO.2

SEX AND SATISFACTION

 

LEVEL OF SATISFACTION

 

LOW

MEDIUM

HIGH

MALE

22(20.37%)

60(55.56%)

26(24.07%)

108(100%)

FEMALE

18(42.86%)

15(35.71%)

9(21.43%)

42(100%)

TOTAL

40

75

35

150


D.F:2 Calculated x2 values:8.66
Table value at 5% level 5.99

The Table No. 2 explains the association between sex and satisfaction. In the first group totally 108 respondents. Out of the 108 respondents. 22 respondents are with low level of satisfaction. The level of satisfaction 60 respondents is medium and 26 respondents are with high level of satisfaction. The second group which comprises of female respondents. Out of the total 42 female respondents, 18 respondents. Out of the total 42 female respondents, 18 respondents are with low level of satisfaction. 15 respondents are with medium level of satisfaction and nine respondents are with high level of satisfaction. It could be seen from the table that the percentage of respondents (42.86%) with low level of satisfaction is high incase of female respondents than the male respondents (20.37%) and the percentage of respondents with medium level of satisfaction is high (55.56%) incase of male respondents than the female respondents (35.71%).

 As the calculated Chi –square (c2 ) value is greater than the table value at 5% level of significance , the null –hypothesis is rejected. Hence it could be inferred that there exist an association between sex and level of satisfaction. 

TABLE NO.3

NATURE OF RESIDENCE AND SATISFACTION

NATURE

LEVEL OF SATISFACTION

 

RESIDENCE

LOW

medium

High

Hostler

17.32.08%)

34(64.15%)

2(3.77%)

53(100%)

Day scholar

23(23.71%)

41(42.27%)

33(34.02%)

97(100%)

TOTAL

40

75

35

150


D.F:2 calculated x2 values:17.44
Table value at 1% level 9.210
Table value at 5% level 5.991

The table No.3 explains association between hostler, day scholar and level of satisfaction. In the first group totally 53 respondents. Out of the 53 respondents, 17 respondents are with low level of satisfaction. The level of satisfaction 34 respondents is medium and two respondents are with high level of satisfaction. The second group, which comprises of day scholar (97) respondents. Out of the total 97 day scholar , 23 respondents are with low level of satisfaction. 41 respondents are with medium level of satisfaction and 33 respondents are with high level of satisfaction. It could be seen from the table that the percentage of respondents ( 32.08%) with low level of satisfaction is high incase of hostler than the day scholar (23.71%) and the percentage of respondents with medium level of satisfaction is high (64.15%) incase of hosteller than the day – scholar (42.27%)

As the calculated c2 is greater than the table at 15 level of significance, the null hypothesis is rejected. Hence it could be inferred that there exist an association between nature of residence and the level of satisfaction.

TABLE NO.4

EDUCATIONAL QUALIFICATION AND SATISFACTION

Educational

   LEVEL OF SATISFACTION

 

qualification

LOW

MEDIUM

HIGH

M.B.A

4(12.5%)

24(75%)

4(12.5%)

32(100%)

M.C.A

7(20%)

19(54.29%)

9(25.71%)

35(100%)

M.SC

1(9.10%)

5(45.45%)

5(45.45%)

11(100%)

B.E

28(38.89%)

27(37.50%)

17(23.61%)

729100%)

TOTAL

40

75

35

150


D.F calculated x2 value:22.38
Table value at 1% level 16.812.
Table value at 5% level 12.592

The table no .4 explains association between educational qualification and the satisfaction. The first group consists totally 32 respondents. Out of the 32 respondents , four respondents are with low level of satisfaction. The level of satisfaction 24 respondents is medium and four respondents are with high level of satisfaction.

The second group which comprises of 35 respondents. Out of the total 35 respondents, seven respondents are with low level of satisfaction. 19 respondents are with medium level of satisfaction and nine respondent are with high level satisfaction. The third group which comprises of 11 of respondents. Out of the total 11 respondents, one respondents are with low level of satisfaction, five respondents are with medium level of satisfaction and five respondents are with medium level of satisfaction. The fourth group which comprise of 72 respondents. Out of the total 72 respondents, 28 respondents are with low level of satisfaction and 27 respondents are with low level of satisfaction and 27 respondents are with medium level of satisfaction and 17 respondents are with high level satisfaction. It could be seen from the table that the percentage of respondents (38.89%) with low level of satisfaction is high incase of fourth group respondents than the other groups of the respondents.

The percentage of respondents with medium level of satisfaction is high (54.29%) incase of second group respondents than the other groups of the respondents.

As the calculated c2 value is greater than the table value at one percent level of significance, the null hypothesis is rejected. It could be inferred that there exist an association between educational qualification and the level of satisfaction.   

TABLE NO.5

FAMILY MONTHLY INCOME AND SATISFACTION

FAMILY

 

 

 

 

MONTHLY

           LEVEL OF SATISFACTION

 

TOTAL

INCOME (RS.)

LOW

MEDIUM

HIGH

 

UPTO RS.6000

12(13.33%)

52(57.75%)

26(28.89%)

90(100%)

Rs.6001-Rs.12000

25(49.02%)

19(37.25)

7(13.73%)

51(100%)

ABOVE RS.12000

3(33.34%)

4(44.44%)

2(22.22%)

9(100%)

TOTAL

40

75

35

150


D.F calculated x2 value:23.32
Table value at 1% level 13.277
Table value at 5% level 9.488

The table no 5 explains the association between the family monthly in come of respondents and there satisfaction. For this purpose VIZ (i) up to Rs 6000/-. (ii) Rs. 6001 to Rs 12000 and (iii) Above Rs.12000/-

The first group consists of totally 90 respondents. Out of the 90 respondents 12 respondents are with low level of satisfaction. The level of satisfaction 52 respondents is medium and 26 respondents are with high level of satisfaction.

The second group which comprises of 51 respondents. Out of the that 51 respondents, 25 respondents are with low level of satisfaction, 19 respondents are with medium level of satisfaction and seven respondents are with high level of satisfaction. The third group which comprises of nine respondents. One of the total nine respondents, there respondents are with low level of satisfaction, four respondents are medium level of satisfaction and two respondents are with high level of satisfaction. It could be seen from the table that the percentage of respondents ( 49.02%) with low level of satisfaction is high incase of second group respondents than the other groups of the respondents. The percentage of respondents with medium level of satisfaction is high incase of first group respondents than the groups of respondents.

As the calculated c2 value is greater than the table value at 15 level of significance the null – hypothesis is rejected. Hence it could be inferred that there exist an association between monthly income and level of satisfaction.

TABLE NO.6

FAMILY MEMBERS AND SATISFACTION

MEMBERS

           LEVEL OF SATISFACTION

 

TOTAL

LEVEL

LOW

MEDIUM

HIGH

 

UPTO 4

14(17.50%)

47(58.75%)

19(23.75%)

80(100%)

ABOVE 4

26(37.14%)

28(40%)

16(22.86%)

70(100%)

TOTAL

40

75

35

150


D.F :2 calculated x2 value: 7.54
Table value at 5% level 5.99.

The table no 6 explains association between the family members of the respondents and level of satisfaction. The first group totally 80 respondents. Out of the 80 respondents , 14 respondents are with low level of satisfaction. The level of satisfaction 47 respondents is medium and the 19 respondents are with high level of satisfaction. The second group which comprises of 70 respondents. Out of the total 70 respondents 26 respondents are with low level of satisfaction, 28 respondents are with medium level of satisfaction and 16 respondents are with high level of satisfaction.

It could be seen from the table that the percentage of respondents (37.14%) with low level of satisfaction is high incase of second group respondents with medium level of satisfaction is high (58.75%) incase of first group than the second group respondents (40%).

As the calculated c2 value is greater than the table value at 5% level of significance the null hypothesis is rejected. Hence it could be inferred that there exist an association between the family members of respondents and their level of satisfaction. 

TABLE NO.7

OCCUPATION AND SATISFACTION

OCCUPATION

           LEVEL OF SATISFACTION

 

TOTAL

 

LOW

MEDIUM

HIGH

 

Agriculture

10(25%)

23(57.5%)

7(17.50%)

40(100%)

Officers

11(45.83%)

10(41.67%)

3(12.50%)

24(100%)

Business

11(16.42%)

39(58.21%)

17(25.37%)

67(100%)

Profession

8(42.10%)

3(15.80%)

8(42.10%)

19(100%)

TOTAL

40

75

35

150


D.F:6 calculated x2 value:21.56
Table value at 1% level 16.812
Table value at 5% level 12.592

The table no.7 explains the association the occupation of the father's / guardian's respondents and their satisfaction. The occupation of father's / guardians respondents are classified in to our groups.

(i) Agriculture (ii) Officers (iii) Business (iv) profession

In the first group totally 40 respondents. Out of the 40 respondents , 10 respondents are with low level of satisfaction . 23 respondents are with medium level of satisfaction and seven respondents are with high level of satisfaction.

In the second group totally 24 respondents. Out of the 24 respondents, 11 respondents are with low level of satisfaction. The level of satisfaction with 10 respondents is medium and three respondents are with high level of satisfaction. In the third group totally 67 respondents. Out of the 67 respondents , 11 respondents are with low level of satisfaction. The level of satisfaction with 39 respondents is medium and 17 respondents are with high level of satisfaction.

The fourth group totally 19 respondents. Out of the totally 19 respondents, eight respondents are with low level of satisfaction, three respondents are with medium level of satisfaction and eight respondents are with high level of satisfaction. It could be seen from the table the percentage of respondents (45.83%) with low of satisfaction is high incase of second group respondents. (i.e. business) than the other group of respondents.

The percentage of respondents with medium level of satisfaction is high (58.21%) incase third group of respondents than the other group of respondents. As the calculated c2 value is greater than the table value at 1% level of significance , the null-hypothesis is rejected. Hence it could be inferred that there exist an association between occupation and level of satisfaction.

TABLE NO:8

EDUCATIONAL QUALIFICATION OF FATHER'S/GUARDIAN'S AND SATISFACTION

EDUCATIONAL
QUALIFICATION OF

LEVEL OF SATISFACTION

TOTAL

FATHER'S/GUARDIANS

LOW

MEDIUM

HIGH

 

UPTO SSLC

26(37.14%)

35(50%)

9(12.86%)

70(100%)

HSC

10(47.62%)

10(47.62%)

1(4.76%)

21(100%)

Graduate

2(4%)

25(50%)

23(46%)

50(100%)

Post Graduate

2(22.22%)

5(55.56%)

2(22.22%)

9(100%)

TOTAL

40

75

35

150


D.F:6 calculated x2 value:30.62
Table value at 1% level 16.812.
Table value at 5% level 12.592

The table no.8 explains association between educational qualification of father's / guardian and the level of satisfaction. In the first group totally 70 respondents. Out of the 70 respondents 26 respondents are with low level of satisfaction. The level of satisfaction 35 respondents is medium and nine respondents are with high level of satisfaction. The second group which comprises of 21 respondents. Out of the total 21 respondents, 10 respondents are with low level of satisfaction. 10 respondents are with low level of satisfaction and 25 respondents are with   medium level of satisfaction and 23 respondents are with high level of satisfaction.

The fourth group which comprises of nine respondents . out of the total nine respondents , two respondents are with low level of satisfaction, five respondents are with medium level of satisfaction and two respondents are with high level of satisfaction. It could be seen from the table that the percentage of respondents (47.62%) with low level of satisfaction is high incase of second group respondents that the other groups of respondents.

The percentage of respondents with medium level of satisfaction is high (55.56%) incase of fourth group respondents than the other group of respondents.

As the calculated x2 value is greater than the value 1% level of significance, the null hypothesis is rejected. Hence it could be inferred that there exist an association between educational qualification of father's/guardian's and the level of satisfaction. 

FINDINGS AND SUGGESTIONS

1. The average satisfaction index of 150 respondents is 64%

2. There exists a significant association between the age and the level of satisfaction of respondents. Their satisfaction is the (66.5%) to those who fall under the age group of 23-24 years.

3. There exist to close association between the sex and level of  satisfaction of the respondents. The satisfaction is more with male  respondents (66%)

4. There exist a significant association between the nature of residence and level of satisfaction of the respondents. The satisfaction is more with reference to dayscholar(64.5%)

5. There exists a significant association between the educational  qualification of the respondents and their satisfaction. The satisfaction of the respondents who have educational qualification up to M.Sc(software), is the greatest (68.5%) in comparison to other  group of respondents.

6. There exists a close association between the family monthly income  and their satisfaction. Whose monthly income is above Rs.12,000 is  greatest (67%) comparatively others.

7. There exists a close association the family strength of the  respondents and their satisfaction. The satisfaction of respondents,  whose family strength is up to four members, is the highest 66%

8. There exists a close association between the fathers/guardians   occupation and their satisfaction, 65% in officers side as well as  the same percentage in professional side.

9. There exists a significant association between the educational qualification of the father's/guardian and their satisfaction. The satisfaction of the respondents whose educational qualification of father's/guardian is post graduate level is the greatest 66% in comparison to other group of respondents.

SUGGESTIONS TO THE BANKER

1. The banks may liberalize its procedure to get the educational loan for make it easy to students.

2. The banks may not ask securities to provide loan because majorities of there are not having sufficient account of assets with them.

3. The bankers should educate should about loan in higher secondary it self.

4. The bankers give an advertisement for rural area of student.

SUGGESTIONS TO THE GOVERNMENT

1. The government may particularly concentrate in professional oriented course as well as for technologies and diploma course.

2. The government may great some assistant to bank for readies, which change while educational loan.

BIBLIOGRAPHY

1. INDIAN BANKING (2004) S.NATARAJAN, SULTAN- CHAND NEW DELHI

2. MODERN BANKING (1997) K.P.M. SUNDHARAM, SULTANCHAND, NEWDELHI

3. INDIAN BANKING (2003) RAMACHANDRAN

4. BUSINESS RESEARCH METHODS (2003) SARAVANAVELU

5. PRINCIPLES OF EDUCATION - RAJAGOPAL

6. PRIVATISATION OF EDUCATION -J.J.KHAN NEW DELHI

7. RESEARCHMETHODOLOGY-(2000) C.R.KOTHARI,

K.K.GUPTA, NEW AGE INTERNATIONAL (P)LTD, NEW DELHI

INTERENT ADDRESS

www.bob.com

www.state

BANK OF INDIA

NEWSPAPER

"THE HINDU" dated on June 28,2002

"THE HINDU" dated on June 9, 2004
 


Dr. A.Vinayagamoorthy
Reader in Commerce
Periyar University
Salem

Mr. K. Subramaniam
Mr. S. Ayyappan
Lecturer's in Commerce
Park's College
Chinnakkarai-Tirupur
 

Source: E-mail May 31, 2007

       

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