As the need of the hour is rapid expansion of supply of quality education, banks should make all possible efforts to promote educational loans by adhering to the guidelines in letter and spirit and prevent educational loans from becoming NPAs.

The cost of education is an important factor in the education delivery system. Every bank as a financial service provider is always eager to associate itself with quality educational financial solutions to students admitted/studying in such institutions.

All banks have come out with educational loan products studded with features and value additions that make the scheme not only attractive but also serve as a launching pad for higher education.

Some banks have also devised an exclusive package with attractive interest rates, value additions like life insurance cover for the student and parent, apart from health insurance for the student. The life insurance cover of parent will enable the student to have unhindered education, in case of any adverse eventualities like death of parent. The life insurance cover with accident benefit and health cover will help the student directly.Banks as a financial service provider are always committed to student welfare and they want to see that even in adverse situations like accident/disability and death of parent, students' education should go uninterrupted.

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