Increasing number of NPAs from the education loan sector has been a matter of concern for banks since some time now. And to add to their worries, government has now directed banks to increase their share of education loans in the total loan book.

Following instructions from the government, banks have again begun their education loan funding scheme. They have started by increasing the credit tenor as well as giving loans to more than 1 person in the family for loans amounting upto Rs 4 lakh.

"The revised scheme is forwarded to the government. It will be more customer-friendly and cover large number of applicants," said K Unnikrishnan, deputy chief executive, Indian Banks Association.