The revised education loan scheme implemented on all banks would now make loan disbursal mechanism a related factor to the repayment potential of the borrower. Thus it no longer will be the parental income or family wealth of the borrower which will be the decisive factor.

The employability assessment of the candidate and his repayment capacity will be the only factor deciding the loan amount.

The scheme called 'model education loan scheme' will thus definitely bring better benefits to the meretorious student class.

In order to asssess the employability of candidates, lenders may come up with some standard test.

"To avoid subjectivity in assessment, it is suggested that banks may fix from time to time the earning potential for various courses, percentage of income to be considered for repayment, and so on.

"This will ensure that the decision to sanction an education loan is based on sound commercial logic, besides serving a noble cause," the Indian Banks' Association said.