On Tuesday again the Finance Minister reiterated that the public sector banks must clear education loans within a period of 15 days to one month and banks should also set up an online system for speedy clearing of loans.
In his reply given to Rajya Sabha Chidambaram, said, "As per the norms prescribed under the Model Education Loan Scheme, the banks are required to dispose of loan applications within a period of 15 days to one month." However he said as per the reports from the PSU banks time period condition is being taken care of where the applications were found complete in all respects.
The Finance Minister stated, the government has directed the banks to set up an online system of loan applications. This will make possible for the students to download the loan application form, apply online and learn the status of their loan application, Chidambaram said, online facility is now being provided by all major public sector banks.
As per the report received from the RBI he said educational loans worth Rs 18,992 crore were excellent as on November 23, sanctioned by the public sector banks.
Tuesday, February 26, 2008
Monday, February 25, 2008
Educational institutes expect a hike in education loan limit
In the recent years there has been increase in the cost of the education. Most of the educational institutions and people from this industry are expecting from the government to raise in the limit in the coming Budget, from Rs 4 lakh to Rs 5.50 lakh without collateral security.
"Keeping in view the expenses incurred by a student in a business school, the collateral free education loan limit should be fixed at Rs 5.50 lakh," said Amity University Professor Gurinder Singh.
He added that in the last 3-4 years, the management graduates are earning in lakhs. They can easily pay back loans after getting jobs.
The industrial chambers, including FICCI, have also requested the Finance Minister P Chidambaram to offer liberal funds for educational loans as the industry is facing a severe shortage of skilled manpower in manufacturing and service sector.
The industry had said that education loan to the students should be more easily accessible who intend to take up higher education.
Currently, banks provide educational loans up to Rs 4 lakh without collateral security and up to Rs 7.5 lakh with security.
Even the Human Resource Development (HRD) Ministry has also proposed to offer financial support to students below the "creamy layer" in a bid to ensure access for all professional education.
"Keeping in view the expenses incurred by a student in a business school, the collateral free education loan limit should be fixed at Rs 5.50 lakh," said Amity University Professor Gurinder Singh.
He added that in the last 3-4 years, the management graduates are earning in lakhs. They can easily pay back loans after getting jobs.
The industrial chambers, including FICCI, have also requested the Finance Minister P Chidambaram to offer liberal funds for educational loans as the industry is facing a severe shortage of skilled manpower in manufacturing and service sector.
The industry had said that education loan to the students should be more easily accessible who intend to take up higher education.
Currently, banks provide educational loans up to Rs 4 lakh without collateral security and up to Rs 7.5 lakh with security.
Even the Human Resource Development (HRD) Ministry has also proposed to offer financial support to students below the "creamy layer" in a bid to ensure access for all professional education.
Saturday, February 23, 2008
IBA introduces insurance –linked education loan scheme
The Indian Banks’ Association (IBA) has come up with an idea of a model education loan scheme which involves a higher increase in loan. Though this scheme will be more expensive, lending standards are due to become tighter for loans for overseas education.
Under this scheme Public sector banks will be offering insurance-linked education loans. The insurance premium will be a part of the expenses for the loan.
Under the scheme the loan limit has been increased from Rs 7.5 lakh to Rs 10 lakh for studies in India and from Rs 15 lakh to Rs 20 lakh for studies overseas. Addition to this, there will be a provision of top-up loan for students for further studies. A limit of sorts has been fixed for the cost of such loans — the rate of interest have to be within the benchmark prime lending rate (BPLR) for loans up to Rs 4 lakh. And for loans over this limit, the rate of interest should not be more than 100 basis points over the BPLR.
Moreover some banks including the State Bank of Hyderabad and the Union Bank of India are providing educational loans at special rates of interests for girl students.
Under the scheme, life policies and mutual fund units will now be as allowed security for the loan. Banks will be able to lend multiple loans to a single family. Education loans will now be given for aeronautical engineering, pilot training, and shipping training as part of eligible courses.
The loans for overseas education the norms will be stiffer. For loans between Rs 4 lakh to Rs 7.5 lakh, banks will entail more restrictive security by including co-obligation of parents. A banker said this has been done due to rising NPAs in this segment, when parents claimed that they were not responsible for the loan repayments of their wards.
Also, banks will now charge upfront, the processing fees for education loans for studies abroad. Banks will be issuing a unique identification number or an identity card for loans for studies overseas.
Under this scheme Public sector banks will be offering insurance-linked education loans. The insurance premium will be a part of the expenses for the loan.
Under the scheme the loan limit has been increased from Rs 7.5 lakh to Rs 10 lakh for studies in India and from Rs 15 lakh to Rs 20 lakh for studies overseas. Addition to this, there will be a provision of top-up loan for students for further studies. A limit of sorts has been fixed for the cost of such loans — the rate of interest have to be within the benchmark prime lending rate (BPLR) for loans up to Rs 4 lakh. And for loans over this limit, the rate of interest should not be more than 100 basis points over the BPLR.
Moreover some banks including the State Bank of Hyderabad and the Union Bank of India are providing educational loans at special rates of interests for girl students.
Under the scheme, life policies and mutual fund units will now be as allowed security for the loan. Banks will be able to lend multiple loans to a single family. Education loans will now be given for aeronautical engineering, pilot training, and shipping training as part of eligible courses.
The loans for overseas education the norms will be stiffer. For loans between Rs 4 lakh to Rs 7.5 lakh, banks will entail more restrictive security by including co-obligation of parents. A banker said this has been done due to rising NPAs in this segment, when parents claimed that they were not responsible for the loan repayments of their wards.
Also, banks will now charge upfront, the processing fees for education loans for studies abroad. Banks will be issuing a unique identification number or an identity card for loans for studies overseas.
Friday, February 22, 2008
Haryana Govt. revises Loan grants scheme for SC students pursuing higher studies
The Haryana Government in order to provide more facilities to the Schedule Caste students to go for higher studies, revised the loan grants scheme offered to Scheduled Castes students for pursuing post-matriculation and higher studies any where within the state.
On Wednesday V. Umashankar, deputy commissioner, Sirsa district, said earlier students pursuing their post-matriculation studies used to get a loan of Rs 800 per year for purchase of books and stationery. Under the new scheme such students will get Rs 2,000 per annum and that too as non-refundable grant.
According to the new scheme, students will be entitled for funds to purchase books and stationery with the added facility of not refunding the money received from the government under this head.
The government also took the decision to hike the amount paid under the grants. Students pursuing their postgraduate degrees shall be entitled to Rs 4,000 instead of Rs 1,500 given earlier and those opting for professional course would be entitled to Rs 6,000 instead of Rs 2,000 being given earlier for the purchase of books and stationery.
Furthermore, the government has plans to extend the Dr Ambedkar Scheme to the students of Backward Classes. Earlier the scheme was applicable for only Scheduled Caste students of class XI and XII. As per this scheme, now, students of unprivileged sections of the society will receive a monthly stipend of Rs 1,000.
On Wednesday V. Umashankar, deputy commissioner, Sirsa district, said earlier students pursuing their post-matriculation studies used to get a loan of Rs 800 per year for purchase of books and stationery. Under the new scheme such students will get Rs 2,000 per annum and that too as non-refundable grant.
According to the new scheme, students will be entitled for funds to purchase books and stationery with the added facility of not refunding the money received from the government under this head.
The government also took the decision to hike the amount paid under the grants. Students pursuing their postgraduate degrees shall be entitled to Rs 4,000 instead of Rs 1,500 given earlier and those opting for professional course would be entitled to Rs 6,000 instead of Rs 2,000 being given earlier for the purchase of books and stationery.
Furthermore, the government has plans to extend the Dr Ambedkar Scheme to the students of Backward Classes. Earlier the scheme was applicable for only Scheduled Caste students of class XI and XII. As per this scheme, now, students of unprivileged sections of the society will receive a monthly stipend of Rs 1,000.
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