Banks to follow new guidelines on education loan? - outlookindia.com | wired
outlookindia.com | wired: "EDUCATION PRINT EMAIL
Banks to follow new guidelines on education loan?
TIRUNELVELI,MAY1 (PTI)
Banks have proposed to follow certain new guidelines to make education loans more secure following reports that recovery of education loans was becoming tougher,and recovery rate was falling, according to official sources.
The sources said certificates of those availing the loans would carry 'Education Loan Availed' stamp.
The respective Universities would be asked to monitor as to where they (students who availed the loan) had got their placement. There was a plan to establish Education Loan Finance corporation to provide insurance cover for the education loan.
However,it was not know when the new guidelines would come into effect,Deputy General Manager of State Bank of India N.Sadhasivam told reporters here last night.
He said the Madurai zone planned to disburse more than Rs.100 crore as education loan this year.He said the rate of unrecovered loan was 40 per cent.
The education loan was given from 2001.Those who had availed the loan should have started repaying the loan from 2005,that is after the period of concession for repayment was over.But the NPA was 40 per cent in Education loan.'This is worrying the banks,' he added.
So the Government was thinking of issuing new guidelines and following new procedure for Education loans,the sources said."
Banks to follow new guidelines on education loan?
TIRUNELVELI,MAY1 (PTI)
Banks have proposed to follow certain new guidelines to make education loans more secure following reports that recovery of education loans was becoming tougher,and recovery rate was falling, according to official sources.
The sources said certificates of those availing the loans would carry 'Education Loan Availed' stamp.
The respective Universities would be asked to monitor as to where they (students who availed the loan) had got their placement. There was a plan to establish Education Loan Finance corporation to provide insurance cover for the education loan.
However,it was not know when the new guidelines would come into effect,Deputy General Manager of State Bank of India N.Sadhasivam told reporters here last night.
He said the Madurai zone planned to disburse more than Rs.100 crore as education loan this year.He said the rate of unrecovered loan was 40 per cent.
The education loan was given from 2001.Those who had availed the loan should have started repaying the loan from 2005,that is after the period of concession for repayment was over.But the NPA was 40 per cent in Education loan.'This is worrying the banks,' he added.
So the Government was thinking of issuing new guidelines and following new procedure for Education loans,the sources said."
posted by Sandip K. Dasverma at
2:51 AM
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