NEWS & ADVICE : EDUCATION LOANS
Rising defaults in Education loan
By Neelima Shankar
May 21, 2014
Print    Email    RSS   

It has been reported that the defaults in the education loan in the banks are continuously rising. Due to the low salary in the beginning, students are facing problem in repaying back the education loan.

Last year the gross NPA of the education loan was about 5-8%. The Gross NPA of education loan has increased from 3.5% to 5.5% during the last fiscal year. CMD of the Indian bank stated that in order to control this they have asked the students and their parents to opt for restructuring of loans and get their repayment period extended. Bank officials stated that the students are facing problem because salaries of the students have been kept low and fixed at 23,000- 30,000 per month where as the other expenses and interest rates have hardened.

With the interest rate of education loan being 12% on amount of Rs 4lakhs, students need to pay an EMI of Rs 8,000 monthly. This seems to be great burden. Banks are trying to solve this problem and control the NPA. Besides providing the restructuring option banks are also offering a repayment holiday of six to nine months.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Bank loans that could glitter for you
Collateral and co-applicant requirements...
Education loans seeing a facelift in India
Carnival of Indian Personal Finance Blogs #6
Interest servicing during moratorium...


ROPAR: CaℒL Giℛℒ In Kurali 09855660911...
Why Pitampura Tutors (Ph:- 9911742311) & Private...
kala jadu in hindi 9636854282

NEWS THIS WEEK
Banks to look forward to hire students from IIT/IIM Feb 18, 2015
Union Bank of India hiring for the post of specialist officers Feb 16, 2015
Canara bank launched scholarship Scheme Feb 13, 2015
AXIS bank started ‘My idea of progress’ Campaign Feb 12, 2015
RBI inviting applications for the guard post Feb 11, 2015
News Archive