A STUDY ON STUDENTS SATISFACTION TOWARDS EDUCATIONAL LOAN FROM CANARA BANK WITH SPECIAL REFERENCE TO GURUSAMIPALAYAM, NAMAKKAL DISTRICT

© 2019 IJRAR March 2019, Volume 6, Issue 1 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349-5138)
IJRAR19J3266 International Journal of Research and Analytical Reviews (IJRAR) www.ijrar.org 838
A STUDY ON STUDENTS SATISFACTION
TOWARDS EDUCATIONAL LOAN FROM
CANARA BANK WITH SPECIAL REFERENCE
TO GURUSAMIPALAYAM, NAMAKKAL
DISTRICT
Dr. C.Paramasivan Ph.D. S. Karpakam,M.Com, M.Phil
Assistant Professor and Research Supervisor Assistant professor in Commerce
Department of Commerce Vivekanandha College for Women
Periyar E.V.R. College (Autonomous) Tiruchengode, Tamil Nadu
Tiruchirappalli, Tamil Nadu
ABSTRACT
Education is important to people of all ages and it has no limit. Children require education in order
for them to learn how to speak and to write. Both on personal and national levels, education has been shown
to increase economic growth and stability. One of the most important benefits of education is how it
improves personal lives and helps societies run smoothly. The study has attempts to find out the satisfaction
level of the students in Gurusamipalayam, Rasipuram (Tk) who have intention to avail the educational loan
offered by Canara bank. This study found that to understanding the satisfaction level of students in availing
the educational loan from Canara bank. Valuable suggestions and recommendations offered by the
researcher. If it is strongly implemented by the Canara bank as well as government, the educational status of
the higher education students will improve without fail and also increases educational status of the students
in the study area.
Key Words : Education Loan, section 80E, higher education, vocational learning , theoretical study
INTRODUCTION
The Importance of Student Loans is still, it falls on families and students to pursue pathways such as
scholarship assistance and financial aid that reduce the cost and future burden of this essential investment.
The best education loan benefit is it helps in saving income tax. Students and parents get income tax benefits
under section 80E of the Income Tax Act. It not only satisfies the financial need to proceed with higher
education but helps in saving income tax also while repayment. With this aspect the present paper made an
attempt to discuss the satisfaction level of the respondents in availing educational loan from Canara Bank in
Gurusamipalayam, Rasipuram (Tk) of Tamil Nadu.
NEEDS OF EDUCATION
The nation needs an education system that excites and stimulates children, providing them with the
learning they need - and deserve - to fulfill their potential. This means providing a curriculum of practical
and vocational learning alongside theoretical study. This need for change has never been more pressing. It is
not due to the fault of any individual, any school or even any one political party but due to the simple fact
the world has changed - and our education system has not changed fast enough. A statement of special needs
is a formal document detailing a child's learning difficulties and the help that will be given. If your child
needs help at school - beyond what their teachers can provide - a 'statement of special needs' will ensure they
get the right help
SCOPE OF THE STUDY
The Present study is confined the problems of finance which prevails among the students, is solved
the Canara bank by granting the educational loan. The study will make a broad perspective of students /
customer in Gurusamipalayam. The study incorporates on detail about the factors motivating the students to
borrow their money from Canara bank.

REVIEW OF LITERATURE
Jason N. Houle (2014), in this study the researcher focuses howparents’ income and education are
linked to young adults’ student loan debt. For this purpose develop and test two perspectives regarding the
functional form of the association between parents’ A Study of Significant Impact of Education Loan in
Maharashtra with Special Reference to State Bank of India.income, parents’ education,and student loan debt.
This suggests that socioeconomic disparities in debt are primarily driven by the probability of going into
debt rather than differences among debtors. However, compared to their more advantaged counterparts,
young adults from low-SES backgrounds have a higher risk of accruing debt burdens that exceed the
national average.
Harsh Gandhar (2010) - Education loans form a part of the priority sector advances of the Public
Sector Banks and most of the educational loans are taken for pursuing higher education courses. In the
knowledge era, higher education has gained significance all across the world. Like other developing nations,
India also faced financial crunch in the early nineties and higher education suffered in terms of allocations.
The main conclusion of the study is that the scheme is run purely on commercial basis and does not offer
any soft options for the meritorious and the needy.
(Powar, 2002) - This study reveals that the beneficiaries of higher education are predominantly
students from the middle and upper classes. This may be true for the professional courses, like those of
medicine, engineering and management, but not for higher education as a whole. But whatever be the
courses of students the high cost of education may act as a barrier to entry for the relatively poor students
especially for the professional courses. Academic cost consists of fee and non-fee component.
OBJECTIVES OF THE STUDY
 To study the personal profile of the respondents.
 To understand the satisfaction level of the respondents in availing educational loan from Canara
Bank.
METHODOLOGY OF THE STUDY
The study is designed as primary data which were collected from the beneficiaries of educational
loan by using structured questionnaire. Random sampling technique was applied and questionnaire is the
main tool for collecting their opinion about the satisfaction of the educational loan. Simple statistical tools
like percentage analysis, mean score analysis, chi-square analysis and correlation analysis have also been
used. The results are discussed in the following tables.
RESULTS AND DISCUSSION
The descriptive analysis of the research is studied from the students’ opinion about the satisfaction
level towards educational loan. The results are discussed in the following tables.
Table 1 : Demographic Profile of the Respondents and Their Satisfaction
No. Variables No. of Respondents %
Mean
Score
1 Gender
Male 96 79.3 3.65
Female 25 20.7 3.74
Total 121 100.0
2 Age
18-20 Years 56 46.3 3.70
21-23 Years 39 32.2 3.62
Above 23 Years 26 21.5 3.68
Total 121 100.0
3 Marital Status
Married 49 40.5 3.56
Unmarried 72 59.5 3.74
Total 121 100.0
4 Number of Family Members
3 members 24 19.8 3.80

No. Variables No. of Respondents %
Mean
Score
4 members 42 34.7 3.57
5 members 34 28.1 3.65
Above 5 members 21 17.4 3.74
Total 121 100.0
5 Occupational Status of Father
Professional 18 14.9 3.62
Employee 35 28.9 3.72
Business 21 17.4 3.70
Agriculture 47 38.8 3.83
Total 121 100.0
6 Family Monthly Income
Up to Rs.8,000 26 21.5 3.58
Rs.8,000-10,000 33 27.3 3.65
Rs. 10,001-12,000 39 32.2 3.70
Above Rs.12,000 23 19.0 3.74
Total 121 100.0
7 Course of Studying
Under Graduate 18 14.9 3.55
Post Graduate 30 24.8 3.84
Professional courses 62 51.2 3.98
Diploma / ITI 11 9.1 3.57
Total 121 100.0
8 Nature of College
Professional College 58 47.9 3.69
Govt. college 20 16.5 3.55
Private /Self Finance College 34 28.1 3.69
Govt. Aided Colleges 9 7.4 3.68
Total 121 100.0
9 Course Duration
2 Years 22 18.2 3.64
3 Years 44 36.4 3.69
4 Years 27 22.3 3.63
5 Years 28 23.1 3.61
Total 121 100.0
10 Availed Loan Amount
Less than 1 Lakh 13 10.7 3.58
1-4 Lakh 52 43.0 3.85
5-6 Lakh 38 31.4 3.66
Above 6 Lakh 18 14.9 3.79
Total 121 100.0
11 Guarantors sources of Income
Salaried 93 76.9 3.93
Self Employed 28 23.1 3.68
Total 121 100.0
12 Type of Interest
Fixed 69 57.0 3.67
Floating 52 43.0 3.66
Total 121 100.0
From the above analysis it is found as follows :

79.3 per cent of the respondents are male and remaining 20.7 per cent of the respondents are female.
46.3 per cent of the respondents belong to 18-20 years aged, 32.2 per cent of the respondents belong to
21-23 years aged and 21.5 per cent of the respondents belong to above 23 years aged.
40.5 per cent of the respondents are married and remaining 59.5 per cent of them are unmarried.19.8
per cent of the respondents are having 3 members in their family, 34.7 per cent are having 4 members,
28.1 per cent are having 5 members and 17.4 per cent are having above 5 members in their family.
14.9 per cent of the respondents’ father is professional, 28.9 per cent of the respondents’ father is
employee, 17.4 per cent of the respondents’ father are doing business, and 38.8 per cent of the
respondents’ father are agriculturist.
21.5 per cent of the respondents’ family are earning upto Rs.8000 in a month, 27.3 per cent earning
Rs.8001 to 10000 in a month, 32.2 per cent earning Rs.10001 to 12000 in a month and 19.0 per cent
earning above Rs.12000 in a month.
14.9 per cent of the respondents are studying under graduate, 24.8 per cent of the respondents are
studying post graduate, 51.2 per cent of the respondents are studying professional courses and 9.1 per
cent of the respondents are studying Diploma / ITI.
47.9 per cent of the respondents are studying in Professional college, 16.5 per cent of the respondents
are studying in Government college, 28.1 per cent of the respondents are studying in private / self
finance college, and remaining 7.4 per cent are studying in Govt. Aided Colleges.
18.2 per cent of the respondents are having 2 years of course duration, 36.4 per cent of the
respondents are having 3 years, 22.3 per cent of the respondents are having 4 years and remaining 23.1
per cent are having 5 years of course duration.
76.9 per cent of the respondents’ guarantors are used salaried income statement and remaining 23.1
per cent are used self employed income statement.
The satisfaction level of the students is as follows :
Female respondents have perceived maximum level of satisfaction towards educational loan.
The students belong to the age group of between 18 and 20 years have perceived maximum level of
satisfaction towards educational loan.
Unmarried respondents have perceived more satisfaction towards educational loan.
The respondents who have 3 members in their family have perceived maximum level of satisfaction
towards educational loan.
The students whose fathers have engaged in business have perceived maximum level of satisfaction
The students whose monthly family income as above Rs.12000 has perceived the highest level of
satisfaction towards educational loan.
The students who are studying post graduate courses have perceived maximum level of satisfaction
The students who are studying in professional colleges have perceived the satisfaction in utilizing
educational loan at the maximum level.
Relationship between Demographic variables of the students and Level of Satisfaction towards
Educational Loan
In order to find out the relationship between selected independent variables and satisfaction towards
level of satisfaction towards educational loan offered by the government, the following null hypothesis have
been framed and tested with the help of chi-square test.
H01 : There is no significant relationship between gender and level of satisfaction towards educational
loan.
Table 2 : Gender and Satisfaction Level of the Respondents (Chi-Square Test)
Factor Calculated 2
Value Table Value D.F Remarks
Gender and
Satisfaction Level
1.806 5.991 2 Not Significant at 5% level

From the above table, it is noted that null hypothesis is accepted due to not significant result. So,
there is a no significant relationship between gender and level of satisfaction towards educational loan
offered by the Government.
H02 : There is no significant relationship between age and level of satisfaction towards educational loan.
Table 3 : Age and Satisfaction Level of the Respondents (Chi-Square Test)
Age and
Satisfaction Level
It could be found from the above table that null hypothesis is accepted owing to not significant result
at 5 percent level. So, there is a no significant relationship between age and level of satisfaction towards
educational loan offered by the Government.
H03 : There is no significant relationship between marital status and level of satisfaction towards
educational loan.
Table 4 : Marital Status and Satisfaction Level of the Respondents (Chi-Square Test)
Marital Status and
Satisfaction Level
11.602 5.991 2 Significant at 5% level
It is observed from the above table that null hypothesis is rejected because of significant result at 5
percent level. So, there is a significant association between marital status of the students and their level of
satisfaction towards educational loan offered by the Government.
H04 : There is no significant relationship between family size and level of satisfaction towards educational
loan.
Table 5 : Family Size and Satisfaction Level of the Respondents (Chi-Square Test)
Family Size and
Satisfaction Level
It could be observed from the above table that null hypothesis is accepted due to not significant result
at 5 percent level. So, there is no significant association between family size of the students and their level of
H05 : There is no significant relationship between occupational status of father and level of satisfaction
Table 6 : Occupational Status of Father and Satisfaction Level of the Respondents
(Chi-Square Test)
Factor
Calculated 2
Value
Table
Value
D.F Remarks
Occupational Status of Father and
Satisfaction Level
6.348 12.592 6
Not Significant at 5%
level
It is cleared from the above table that null hypothesis is accepted due to not significant result at 5
percent level. So, there is no significant association between occupational status of the students’ father and
their level of satisfaction towards educational loan offered by the Government.
H06 : There is no significant relationship between family monthly income and level of satisfaction towards
educational loan.
Table 7 : Family Monthly Income and Satisfaction Level of the Respondents
(Chi-Square Test)
Factor
Calculated 2
Value
Table
Value
D.F Remarks
Family Monthly Income and
Satisfaction Level
6.302 12.592 6
level

It is divulged from the above table that null hypothesis is accepted due to not significant result at 5
percent level. So, there is no significant association between family monthly income of the student and their
level of satisfaction towards educational loan offered by the Government.
H07 : There is no significant relationship between course of studying and level of satisfaction towards
educational loan.
Table 8 : Course of Studying and Satisfaction Level of the Respondents
(Chi-Square Test)
Factor
Calculated 2
Value
Table
Value
D.F Remarks
Course of Studying and Satisfaction
Level
15.502 12.592 6
Significant at 5%
level
It is observed from the above table that null hypothesis is rejected due to significant result at 5
percent level. So, there is a significant relationship between course of studying by the student and their level
of satisfaction towards educational loan offered by the Government.
H08 : There is no significant relationship between nature of college and level of satisfaction towards
educational loan.
Table 9 : Nature of College and Satisfaction Level of the Respondents
(Chi-Square Test)
Factor
Calculated 2
Value
Table
Value
D.F Remarks
Nature of College and Satisfaction
Level
5.016 12.592 6
level
It is observed from the above table that null hypothesis is accepted due to not significant result at 5
percent level. So, there is no significant association between nature of college of the student and their level
H09 : There is no significant relationship between course duration and level of satisfaction towards
educational loan.
Table 10 : Course Duration and Satisfaction Level of the Respondents
(Chi-Square Test)
Factor
Calculated 2
Value
Table
Value
D.F Remarks
Course Duration and Satisfaction
Level
3.746 12.592 6
level
It could be noted from the above table that null hypothesis is accepted due to not significant result at
5 percent level. So, there is no significant association between course duration of the student and their level
H10 : There is no significant relationship between availed loan amount and level of satisfaction towards
educational loan.
Table 11 : Availed Loan Amount and Satisfaction Level of the Respondents
(Chi-Square Test)
Factor
Calculated 2
Value
Table
Value
D.F Remarks
Availed Loan Amount and Satisfaction
Level
14.281 12.592 6
Significant at 5%
level
It is divulged from the above table that null hypothesis is rejected due to significant result at 5
percent level. So, there is a significant association between availed loan amount required by the student and

H11 : There is no significant relationship between guarantors sources of income and level of satisfaction
Table 12 : Guarantors Sources of Income and Satisfaction Level of the Respondents
(Chi-Square Test)
Factor
Calculated 2
Value
Table
Value
D.F Remarks
Guarantors Sources of Income and
Satisfaction Level
0.833 5.991 2
level
It is observed from the above table that null hypothesis is accepted due to not significant result at 5
percent level. So, there is no significant association between guarantors sources of income of the student and
H12 : There is no significant relationship between type of interest and level of satisfaction towards
educational loan.
Table 13 : Type of Interest and Satisfaction Level of the Respondents
(Chi-Square Test)
Factor
Calculated 2
Value
Table
Value
D.F Remarks
Type of Interest and
Satisfaction Level
0.837 5.991 2
level
It is noticed from the above table that null hypothesis is accepted due to not significant result at 5
percent level. So, there is no significant association between type of interest of the student and their level of
Degree of Relationship between Selected Independent variables and Level of Satisfaction of the
Students towards Educational Loan (Regression Analysis)
For examining the factors that influence the satisfaction level of the students towards educational
loan positive or negative, the researcher has used correlation analysis and discussed in the following table.
Table 14 : Degree of Relationship (Correlation Analysis)
No. Variable Name ‘r’ Value ‘p’ Value
1 Gender 0.156 0.088
2 Age 0.368 0.000**
3 Marital Status -0.058 0.525
4 Family Size -0.030 0.742
5 Occupational Status of Father -0.067 0.466
6 Family Monthly Income -0.220 0.015*
7 Course of Studying 0.019 0.834
8 Nature of College -0.008 0.932
9 Course Duration 0.384 0.000**
10 Availed Loan Amount 0.203 0.026*
11 Guarantors Sources of Income 0.030 0.744
12 Type of Interest -0.028 0.764
From the above analysis, it is understood that the degree of relationship between the selected
independent variables and satisfaction of the students towards educational loan. Among the selected 12
variables, four variables are having significant association with satisfaction level of the students towards
educational loan. Among the 4 variables, three variables like age, course duration, and availed loan amount
are having positive association and 1 variable family monthly income have negative association. It indicates
the students are satisfied when their age increases, family monthly income decreases, course duration
increases and availed loan amount increases. So, there is a close significant association between the 4
variables and level of satisfaction of the students.

MAJOR FINDINGS
Majority of the students are male, 18.20 years aged, unmarried, having 4 members in their family,
their fathers are agriculturist, belongs to Rs.10001 – 12000 family monthly income group, studying
professional course, studying professional college, having 3 years of course duration, around Rs.1 to 4 lakh
availed educational loan from the Government, they gave salaried Guarantors sources of income and fixed
type of interest.
Most of the students are satisfied with the educational loan who are female, 18-20 years aged,
unmarried, belongs to above 5 members family, their fathers are agriculturist, their family earn monthly
above Rs.12000, studying professional course, studying in professional or private / self finance colleges,
having 3 years of course duration, availed Rs.1-4 lakh of educational loan, showing salaried guarantors
sources of income and managing fixed type of interest.
It is found from the chi-square test, the variables gender, age, family size, occupational status of the
father, family monthly income, nature of college, course duration, guarantors sources of income and type of
interest are not having close association with the students’ level of satisfaction towards educational loan in
the study area.
On the other hand, it is noted that the variables marital status, course of studying and availed loan
amount are having close association with the students’ level of satisfaction towards educational loan in the
study area.
SUGGESTIONS
From the analysis, more satisfaction perceived by the professional candidates because the
government would offer educational loan more for professional candidate than other degree candidates. But,
now-a-days, the trend in the selection of educational courses that they most interested to study arts and
science degree. So, the Government may give more offers to the UG and PG candidates that help to their
educational promotion and their life style.
Also, the Government may increase the loan sanctioning amount that helps the candidates to
encourage them in their studies. More family income students do not need to offer education loan. So, who
offer educational loan, they definitely being in low income range family. So, the Government may increase
their educational loan that may increase their educational empowerment status.
CONCLUSION
Educational loan is a more important scheme of government for poor students. It is properly
delivered through the Canara bank, Gurusamipalayam. In Indian economical status, most of the students’
family does not able to pay their college fees. So, the Government offers for the students’ education to
increase their educational status in a good manner. In Gurusamipalayam, it is being low income group
income ranged families and so the researcher tries to identify the satisfaction level of the students who
availed educational loan. From the study findings, the researcher offer valuable suggestions and
recommendations to the Government as well as students. If the suggestions are practices, it is a reward to the
researchers.

REFERENCES
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Harsh Gandhar (2010), Educational Loan Scheme of Scheduled Commercial Banks in India: An
Assessment, IJBEMR, 1 (1), 2010.
Jason N. Houle (2014) -Disparities in Debt: Parents’ Socio economic Resources and Young Adult
Student Loan Debt, American Sociological Association on January 16, 2014.
Pauline Nyathira Kamau, Lucy Muthoni, & Collins Odhiambo, (2018). Modelling Factors Affecting
Probability of Loan Default: A Quantitative Analysis of the Kenyan Students' Loan. International Journal of
Statistical Distributions and Applications, 4(1), 29-37.
Powar, K.B. (2002). Indian Higher Education – A coglomerate of concepts, facts and practices. New
Delhi, Concept Publishing Company.
Santhosh Kumar Bojan, & Saravanakumar, A. (2018). Preference of Education Loan - A Study With Special
Reference to Canara Bank in Coimbatore. International Journal for Research in Engineering Application &
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Sonya L. Britt, David Allen Ammerman, Sarah F. Barrett, & Scott Jones, (2017). Student Loans, Financial
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Aid Administrators, 47(N1), 25-37.
Uma Murthy, & Paul Anthony Mariadas, (2017). An Exploratory Study on the Factors Contributing Loan
Repayment Default among the Loan Borrowers in Micro Finance Institutions in Shah Alam, Selangor. International
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A STUDY ON STUDENTS SATISFACTION TOWARDS EDUCATIONAL LOAN FROM CANARA BANK WITH SPECIAL REFERENCE TO GURUSAMIPALAYAM, NAMAKKAL DISTRICT

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A STUDY ON STUDENTS SATISFACTION TOWARDS EDUCATIONAL LOAN FROM CANARA BANK WITH SPECIAL REFERENCE TO GURUSAMIPALAYAM, NAMAKKAL DISTRICT