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 #4
A chronicle of excesses by loan recovery...
Credit profile and its effect on loan...
Manage your loans, avoid recovery agents
Bank loans that could glitter for you


+91-9950620150 black magic specialist in nashik
+91-9950620150 vash ikaran mantra in hindi
+91-9950620150 Vashikaran Astrologer
Yo Yo @~09780560514~@ Call GiRl In ludhiana EsCoRts...
i want check balance for internet
i want eduaction loan for ias coaching.i am an...

NEWS THIS WEEK
Canara Bank signed MOU with Origo Commodities Oct 30, 2014
Mr. Uday sareen will be the new CEO of the ING Vysya bank Oct 29, 2014
NABARD bank a new plan for inland fishing activities Oct 28, 2014
Karnataka Bank hiring for the post of officer Oct 27, 2014
SBI bank to announce the clerk exam result shortly Oct 21, 2014
News Archive