Highly networked bank of the country – State Bank of India has recently reported that the bank will now be offering an exclusive facility of the credit card to the students along with the education loan. The bank stated that, this card will help the students to pay the loan on time and avoid being the defaulters.
Bank is having lots of Non-performing assets (NPA) in education loan, so to control them bank has thought to come up this initiative. With the help of credit cards students can easily pay their loan back and will also help them to stay connected with the bank. This will also assist them in maintain good credit history without any defaults. Even after repaying back the loan the student can continue use the card. At June-end 2014, SBI had an education loan portfolio of ₹14,945 crore, up 7.21 per cent year-on-year.