This research is based on primary data. The primary data was collected from the bank professionals with the help of a questionnaire. The questionnaire was developed based on strong literature support in consultation of practitioners and consultants in the field of HE finance. The respondents were selected based on: Telephone Directory, PROWESS and Organization websites etc. The unit of analysis was the public and private sector banking organizations operating in the principal cities of Punjab and Chandigarh. The reason for selecting this state of India was due to, good in education and establishment of banks in large numbers. The pre-pilot and pilot survey was done to improve the questionnaire. Later on, large scale survey was done at the top, middle and lower level of public and private sector by randomly selecting respondents based on telephone addresses. The questionnaires were mailed after telephonic discussion and later on, followed for response. A total of 200 questionnaires were sent with receipt of 120 responses (Top=10, middle=110) yielding a response rate of 60%. The technique of factor analysis using principal component analysis with varimax rotation was applied to classify the challenges for financing HE loan. The technique of confirmatory factor analysis was applied to test the relationship among HE challenges for managerial decision making. This research intends to prove the research framework (Fig. I) by developing and testing hypotheses as follows:

H1:Understanding credit worthiness challenges helps managers in decision making

It was evident from the literature survey and discussion with managers and consultants in the field of financing HE loan that bank considers challenges to form policy for sanctioning loan and subsidizing it. It is evident from the discussion that if the challenges are difficult then policy to sanction loan shall be more difficult and also the subsidization shall be less. It leads to:

H2:Understanding subsidization of HE loan challenges helps in managerial decision making for credit worthiness

Managers form bank policy to finance HE loan by understanding reasons to borrow. Once understood these challenges loan shall be sanctioned leading to growth of HE finance. It leads to:

H3: Understanding reasons for borrowing challenges helps in managerial decision making and challenges for credit worthiness and subsidization of HE loan

Nowadays there is perfect competition on financing HE loan. It is evident from the discussion with bank managers that it has lead to subsidization of HE loan. It leads to:

H4: Understanding challenges for bank policy on HE finance shall help in managerial decision making and understanding subsidization of HE loan

Considering the challenges and their interdependence managers consider reasons for borrowing to subsidize HE loan and form bank policy for the same. This leads to:

H5: Understanding challenges for growth of HE finance shall help in understanding credit worthiness, subsidization of HE loan and reasons for borrowing:

Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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