Tamil Nadu: State-Owned banks are working to launch new loan products to fund online education for students. While an inside conversation has started with other stakeholders but clarity is expected only after educational institutions frame the new fee structures for the online courses. Some private banks have tie-ups with online portals.
M Aruna deputy general manager of Indian Bank said the institution was thinking about how to allow applications if students apply for virtual courses. Aruna said, “With a lot of talk around shifting to digital, we have to frame education loan policies for the same.”
S Kanimozhi, deputy general manager of Canara Bank, said the fee structure for regular classes would be higher compared to online courses since it could include practical classes, exam fees, etc.
“So, we are yet to know how the fee structure would change (i.e) will be reduced. The information on the change in fee structure has to be produced by the accredited colleges,” she said.
Canara Bank is analyzing the usefulness of online courses from a job market angle before advancing with the Canara Bank Education Loan. “We have to see if those courses will truly be beneficial for the students,” she said.
Upgrade co-founder and managing director Mayan Kumar said that they had a tie-up with Kotak Mahindra Bank for PG Diploma programs in data science and machine learning. “They [Kotak Mahindra Bank] were offering educational loans since ours is an academic program. Our learners have also taken loans from nationalized banks for diploma and degree programs which we provide in partnership with universities, for data and digital marketing and MBA courses,” he said.