In what can be hailed as music to the ears of education loan applicants, the repayment period of new education loans has been increased to 10 to 15 years. At present, education loans have to be repaid within a period of 5 to 7 years.
The modification in the repayment period of new education loan schemes was announced by Mr. Namo Narain Meena, the Union Minister of State for Finance, through a letter to Minister Mr. K. V. Thomas. The letter added that the changes will not have any retrospective effect. It is reported that finance ministry took the decision to increase the repayment tenure of education loans after Thomas brought to the attention of many, the condition of students from Kerala, who are planning to avail education loans.
Meena also said that banks can no longer refuse education loans to applicants on flimsy grounds and that defaulted advances are to be considered as non-performing assets by banks.