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Education loan approvals a daunting task for students:
With examinations season on and new admissions round the corner, the onus has fallen on bank loan facility for continuation of higher education particularly engineering and professional courses.
Kakinada: With examinations season on and new admissions round the corner, the onus has fallen on bank loan facility for continuation of higher education particularly engineering and professional courses.
As far as East Godavari is concerned there are sixty plus engineering and professional colleges in the district. It is a known fact that due to fee reimbursement facility, large numbers of students from middle, lower middle classes and from even BPL families have been opting for these courses.
Outstanding bank loans from 21,450 students is to the tune of Rs 401 crore, across 42 scheduled banks through their 762-branch network in the district
But after admissions several of them are said to be facing difficulties in getting bank loan faculty for continuation of their studies .When they approach banks the collateral security aspect stands as a stumbling block.
Several students complain that though the fee reimbursement facility is there for financially weaker sections, the expenditure on purchase of books and allied facilities have to be met from other sources. In this aspect the raising of funds is turning out as a difficult task as the bankers are insisting on collateral security.
According to bank sources in the present academic year of 2016-17 a total of 2,850 students have been extended loans to the tune of Rs 145.96 crore till February end. Bank loans from 21,450 students to the tune of Rs 401crore remains outstanding to 42 scheduled banks through their 762 branch network in the district by this date.
Chairman of Pragati Educational Intuitions Dr. Paruchuri Krishna Rao observed that obtaining of bank loan for education has turned out as a daunting task for students. Though there are government guidelines to provide the bank loans for education without collateral security, in reality no banker is observing these guide lines he observed.
When contacted East Godavari lead bank district manager [LDM] B. V.Subrahmanyam said that up to Rs 4 lakh education loan no collateral security is needed. At the same time the LDM said that the NPA [nonperforming assets] also is on the rise from the education sector in the last few years.
