Demand Estimation - Education Loans in India

1. Demand Estimation Education Loans in India - Domestic

2. Benefits of taking Education Loans 1. Financial support for professional courses such as MBA, BTech and MBBS2. Available for higher education in India and abroad3. Easy repayment only after job placement 4. Affordable Interest Rates5. Lesser burden on parents6. Loan cover up to as much as 20 lac available by various banks7. Expenses such as tuition fees, travel expenses, hostel charges are included in education loan

3. Top Educational Loan Institutes/ Banks State Bank of India ICICI Bank HDFC Canara Bank Bank of Baroda Indian Bank Dena Bank

4. Factors taken into consideration Population in India Literates Education – Graduates plus Age Class Religion SEC Classes Course (MBA, MBBS, Engineering etc.) Institutes

5. Non-Price Barriers Illiterates Rich families Different mentality/ No interest Nomadic Tribes (NT) category Religion/ Culture Eg. Muslims No admission in college

6. Age Wise population Total population from 10 – 24 31,48,26,880

7. Population by religion

8. Literacy by religion Muslims literacy percent = 12%

9. Growth – Institutes in India Colleges assumed for year 2010-11 : 8000 and 400 respectively

10. Calculations… Population in India – 1,10,54,15,723 Literate Population – 65% = 71,62,14,739 Less: Muslim literates at 12% = 64,98,18,105 Age Group from 10-25 = (64,98,18,105 - 31,48,26,880) = 33,49,91,225 Out of the literates, only 15% of them reach high schools = 15% of 33,49,91,225 = 5,02,48,684 Only 7% are graduates = 7% of 5,02,48,684 = 35,17,408 Institutes =(8000 X 250)+(400 X 200) = 20,80,000

11. Calculations… Institutes =(8000 X 250)+(400 X 200) = 20,80,000 On an average, institutes are only 75% full = 75% of 20,80,000 = 15,60,000

12. Socio-Economic Class (SEC) - Urban

13. Socio-Economic Class (SEC) - Rural

14. Total Demand Estimation

15. Total Demand Estimation Subtracting the Muslim population from the total demand, we get 7,38,660 - 88639 = 6,50,021 Also, NT population is 4% which is 29546 = 6,50,021 – 29,546 = 6,20,474

16. References Indiastat.com Wikipedia Successcds.com

17. Thank You