Education Loan is a right of every student : Chidambaram

Finance Minister P. Chidambaram has said that education loan is the right of every student, and public sector banks must deal with the situation seriously. Chidambaram also added that banks which reject a large number of applications would be penalized.

Chidambaram further added that the bank account is right of every individual, and reinstating that issue of education loan is close to his heart. Mr. Chidambaram also said that the decision of rejecting a loan can only be made by an officer ranked higher than the receiving officer.

This was his first meeting with the PSB chiefs since he assumed the office. The meeting discussed key agendas including timely disposal of applications, loans for diploma courses and loans for students under management quota.

"It is very important that every students who meets the parameter must get a loan because it's a right." Too many rejections of loan applications could result in action taken against the branch manager.