@ Dr. Rao, if we look at the financial aspect and logical aspect. Yes the bank is right in sanctioning car loan much easily than education loan. In case of car loan, if the person deafults in paying the EMI, then bank can forfeit the car and auction it to recover the balance. Obviously bank has right to safeguard the money it has disbursed, as the money itself belongs to the public. Risk in case of education loan is higher in case of default if the person fails to secure a job. Being a finance person I know this simply that in case of higher risk banks charge higher interest and vice versa.
My main focus is that is it even ethical to charge more interest on education loan than on car loan. Many genuine people in need of education loan are devoid of the service due to higher rate of interest. Even Government spends or say focusses on education and higher education too then why not draft a proper regulation regarding this. Leaving everything in hands of bank will make thema commercial entity only which will have only one purpose, earning higher profit and nothing else.
You must be aware of the time when there was 1/6 scheme by Income Tax department, wherein having a mobile phone, house, foreign travel, car and 2 more things was counted as a taxable person, who must pay taxes, if he has any one of the things falling in 1/6 scheme.
Car is now means of livelihood for many and I support that as it serves as means of transport for many and especially during this time it will play a major role. But imagine 130 crore cars on the road, what will happen to the infra and environment. It is although entirely another topic of discussion.
Live before you leave.