This document estimates demand for education loans in India. It provides background on the benefits of education loans and top lending institutions. It then describes factors considered like population, literacy, age, religion. Barriers to loans are discussed like illiterates, different cultures. Calculations are shown to estimate the literate population aged 10-25, graduates, and institute capacity. Demand is estimated at 6,20,474 after removing Muslim and nomadic tribe populations based on literacy and enrollment rates.

1. Demand EstimationEducation 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/ BanksState Bank of IndiaICICI BankHDFCCanara BankBank of BarodaIndian BankDena Bank

4. Factors taken into considerationPopulation in IndiaLiteratesEducation – Graduates plusAgeClassReligionSEC ClassesCourse (MBA, MBBS, Engineering etc.)Institutes

5. Non-Price BarriersIlliteratesRich familiesDifferent mentality/ No interestNomadic Tribes (NT) categoryReligion/ CultureEg. MuslimsNo admission in college

6. Age Wise populationTotal population from 10 – 2431,48,26,880

7. Population by religion

8. Literacy by religionMuslims literacy percent = 12%

9. Growth – Institutes in IndiaColleges 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% = 64,98,18,105Age Group from 10-25= (64,98,18,105 - 31,48,26,880)= 33,49,91,225Out of the literates, only 15% of them reach high schools= 15% of 33,49,91,225= 5,02,48,684Only 7% are graduates = 7% of 5,02,48,684= 35,17,408Institutes =(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 EstimationSubtracting the Muslim population from the total demand, we get7,38,660 - 88639 = 6,50,021Also, NT population is 4% which is 29546 = 6,50,021 – 29,546 = 6,20,474

16. ReferencesIndiastat.comWikipediaSuccesscds.com

17. Thank You