Students in Asia lag behind in tapping education loans compared to students in West ?

A recent study by an top Industry body Assocham in India, revealed that less than 3% of students in India, avail of loans against 85% in UK, 77% in the US and 70% in Germany. This is despite several welfare schemes introduced by the government to provide financial assistance. This figure could be reflective of most developing countries in Asia and in fact around the world. This is attributed to 2 factors that is responsible for low numbers:

1. The amount given as loan is too low to be useful

2. The procedure is too slow, long and cumbersome

US spends nearly $80 billion annually, mostly in the form of aid on higher education, India allocates merely $3.5 million for merit cum means scholarship schemes.