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
A detailed guide on education loans for...
Bank loans that could glitter for you
Plan for your child
A chronicle of excesses by loan recovery...
Some Banks offering education loans for...


my acount blance
kya mujhe pmry form k sath project report v dena h???
My educational loan a/c. No. is 30710895241, can you...
i want check balance for internet
i want eduaction loan for ias coaching.i am an...
my parent are retire and i want education loan which...

NEWS THIS WEEK
Defaulting on the education loan can cost you heavily Jul 30, 2014
Thousand of jobs in banking sector this year Jul 29, 2014
Financial Literacy camp arranged by Nagaland co-op bank Jul 28, 2014
Special Management Executive Hiring in SBI Jul 25, 2014
Awareness regarding the personal finance through an Olympiad Jul 24, 2014
News Archive