Financial Daily from THE HINDU group of publications
Tuesday, Sep 06, 2005
Financial Daily from THE HINDU group of publications Tuesday, Sep 06, 2005 |
|
|
|
|
|
Industry & Economy
-
Education Money & Banking - Interest Rates Educational loans: Chidambaram concern over high interest rates Our Bureau
Coimbatore , Sept. 5 THE Union Finance Minister, Mr P. Chidambaram, has voiced concern over the rate of interest charged on educational loans.Terming the 10.75 per cent rate charged on these loans as `high', Mr Chidambaram told a gathering of student beneficiaries and bankers that a further reduction would be possible if the inflation rate took a dip. `From a high of 7.5 per cent and 8 per cent, the inflation rate dropped to less than 3 per cent last week. In a developing economy, it would be impossible to bring it to zero per cent. If that happens, growth will stagnate. I only wish, the inflation rate is maintained at below three per cent level,' he said. Mr Chidambaram was speaking at an Education Loan Awareness Programme organised by Indian Overseas Bank, Canara Bank and all other leading banks at the PSG College of Technology. While appreciating the bankers for extending financial support to the needy students, the Finance Minister categorically stated that it would be the duty of the beneficiaries to repay the loan. "Education has been democratised. The Government is paving the way to facilitate education for all. It would therefore be impossible to give scholarship to the entire community of students. In such a situation, financial assistance/support has become inevitable," he explained. He handed over the loan sanction letters to 57 beneficiaries amounting to Rs 1.25 crore. The weeklong education loan campaign by 17 banks (both nationalised and private) in this district, culminated with the sanction of 871 loans amounting to Rs 15.05 crore. In Coimbatore district alone, the banks are said to have assisted over 9,350 students this far. The total disbursement, bankers say, amounted to Rs 107 crore.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|