NEWS & ADVICE : EDUCATION LOANS
Budget may allow education guarantee fund: say banks
By Neelima Shankar
Mar 14, 2012
Print    Email    RSS   

With the Union Budget all set to hit soon, lenders mainly the public sector ones are hoping earnestly that the government will come up with a special fund for guaranteeing education loans upto Rs 7.5 lakh.

Rising number of non performing assets (NPAs) from the education loan segment has been increasingly becoming a source of worry for banks. The level of NPAs has almost doubled in the year 2010-11 to Rs 1600 crore as against Rs 750 crore in the year prior to that.

Banks have urged the government that the fund namely Credit Guarantee Scheme for Education Loans (CGSEL) should have an initial size of Rs 2500 crore.

Speaking about the necessity of the fund, an official said, "Though repayments pick up once a young graduate gets a good job, the fact that the account has become non-performing proves a disincentive for further lending to the education loan segment. Hence, the need for the guarantee fund."


 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Carnival of Indian Personal Finance Blogs #6
The best education loan from banks in...
Education Loan for B-Schools
A chronicle of excesses by loan recovery...
Effect of employment on loan eligibility...


black magic for love MOLVI JI...
Love Marriage Specialist MOLVI JI +91-8890248080
09990955692 Russian Call girls Service in Mahipalpur...
before her because they are in sauth delhi call...
Ludhiana Escort - 07837993301 | Call Girls In Ludhiana
KHARAR INDIAS NO.1 PUNJABI HOT CALL...

NEWS THIS WEEK
Banks to look forward to hire students from IIT/IIM Feb 18, 2015
Union Bank of India hiring for the post of specialist officers Feb 16, 2015
Canara bank launched scholarship Scheme Feb 13, 2015
AXIS bank started ‘My idea of progress’ Campaign Feb 12, 2015
RBI inviting applications for the guard post Feb 11, 2015
News Archive