In 1995 State Bank of India came up with an education loan system which was followed by all the other banks in 2001. So a criteria was determined for granting the education loan and it has been followed ever since then. They have to offer some sort of security like a collateral before the loan is granted to them. Also the whole amount of loan is not granted at once. As the loan proceeds, the amount is granted to the person. Students can start repayment of loans after one year of their degree completion. Therefore it becomes extremely necessary for them to land a job as soon as they are done with their degree. The bank also has policies for defaulters who are unable to pay back their loans. Sometimes the degrees of the individual are seized. Some start harassing the parents for money.