The global financial turmoil that has not left any part of the economy unaffected seem to spare students as PSU banks have become easygoing with the disbursement of education loans.
However banks including the industry leader, SBI have been reluctant in their lending to housing, vehicle and personal loans, but they have loosen the strings in providing education loans to the deserving students. "We haven't imposed any restrictions in disbursing education loans," said a senior SBI official.
"Though the employment market is currently gloomy in the wake of economic recession, we are giving away loans to the applicants who satisfy certain parameters," he added.
Although PSU banks have been lenient in giving education loans, yet they are strictly following to the guidelines issued by the Centre while considering applications from the candidates, said the SBI official. Banks have been directed that conditions like location of residence or age should not be the reasons for rejecting education loans to students.
Deputy General Manager of Syndicate Bank, G Ramanathan said that his bank had been extending more education loans even at the time of recession. "We are aggressively sanctioning more number of education loans," said Ramanathan.
"Between last April and December, the bank received 2,948 education loan applications in the state and we sanctioned Rs 69.31 crore," he informed.
Even Catholic Syrian Bank (CSB) Credit Department Chief Manager N Premkumar said that his bank had been disbursing more number of education loans as per the Centre's order. "We give away loans up to Rs 4 lakh by accepting parental security," said Premkumar.
He further informed, "We reject an application only if the institution or the course, which the candidate proposed to study, is not recognised by the UGC or the AICTE."
The public has been permitted by the Center to directly approach the finance ministry in case the PSU banks refuse to sanction an education loan on invalid reasons.
However it has been cleared that students applying for courses that are not recognized by any statutory bodies like the UGC, AICTE, the central government or a state government will not be disbursed the loan.