After the finance minister has announced a moratorium period for all education loans taken up to March 31, 2009, and outstanding as of March 31, 2013, students facing the high expenditure problems has come to relief. It has been reported that after this decision of the finance minister the portfolio of education loan of banks has rised staedily. The finance ministry is keeping a proper check on lending of the banks.
Till the december last year banks have sanctioned education loan of nearly Rs 57,500 crore, and 25,70, 254 such accounts were opened. In order to help out the students finance ministry also instructed the banks not to deny the application of loan of the students, the education loan is the right of the students.
Under the proirty sector guidelines of the RBI the banks are suppose to provide the education loan of upto Rs 10 lakh in India nad 20 lakhs in Abroad. These facilitation of finance ministry in the education loan to the students has boosted the education loan sector in the banking sector. Besides graduation the education loan scheme also covers courses such as medicine, engineering and diploma courses like nursing, business management, pilot training and chartered accountancy