A Study on Indulgence of Educational Loans in Private Sector Banks

Vignesh kamaraj

LAVI (Loan Accounting and Valuation of Interest)

This project of Indulgence of education loans in private sector banks introduces a new scheme which ease the loan repayment methods of all banks. The new scheme we introduce named LAVI (Loan Accounting and Valuation of Interest) enables the loan borrower to pay through UPI and a scanner which enables the borrower to track their payment, payment schedule, paid statements and the all the details necessary to track the loan. The LAVI (Loan Accounting and Valuation of Interest) project aims to develop an efficient and user-friendly system for managing and enable the repayment of education loans in affordable manner. The primary goal of this project is to make educational loans, interest rates, payment statement in an open window which makes borrowers ease to track the deviations of interest rates, ensuring compliance with the terms of the loan agreement. The LAVI scheme will facilitate loan account management, repayment schedules, payment reminders, and easy access to loan details for the borrower. Additionally, it will allow for the tracking of payments, balance amounts, and interest accrual, providing users with real-time information on their outstanding loan balance with just scanning the UPI scanner allotted to the particular loan borrower. Key features of the LAVI scheme include: 1. Loan Accounting Scanner: A personalized scanner that provides borrowers with a clear overview of their loan details, including principal balance, interest rate, repayment period, and the next due date and also the statement of amount paid. 2. Automated Payment Reminders: This scheme enables borrower receives notifications via email, SMS, or app alerts to remind borrowers of upcoming payments, overdue amounts, and payment deadlines, paid statements and required target amount to be paid monthly/yearly. 3. Repayment Schedule: This scheme enables a built-in tool that helps borrower to track the loans, repayment schedule in daily/monthly/yearly manner. 4. Ease Payment Options: This scheme allows borrowers to just use UPI id allotted for borrower to repayment or to just scan the scanner and to pay. 5. Transaction History: This scheme enables the borrower to track detailed payment history, showing past payments, remaining balance, and interest accrued over time. The LAVI scheme will enhance user experience, reduce default repayment system, and improve customer satisfaction by simplifying the complex loan repayment process. This system will be designed with robust security measures to protect sensitive borrower information and adhere to legal and regulatory guidelines for financial transactions which eases the repayment systems. It aims to provide borrowers with a seamless, transparent, and flexible loan repayment journey and reduces NPA of educational loans.

Volume 14 Issue 1, February-2026

Pages : f831-f847