The Hindu Business Line : Banks told to adopt flexible measures for education loans

A humanitarian approach in the processing of loans is necessary as they are intended to develop human resources in the country, unlike credit to produce goods and services - Mr P. Chidambaram

Mr P. Chidambaram, Union Finance Minister.

Our Correspondent

Madurai, Sept. 22 The Union Finance Minister, Mr P. Chidambaram, has urged bankers to adopt a flexible approach while extending education loans.

Addressing an ‘Educational Loan Campaign’ organised by the Indian Overseas Bank as the lead bank covering the districts of Ramanathapuram, Sivagangai and Pudukottai, at Karaikudi on Sunday, Mr Chidambaram said educational loans should be treated as a priority and rules should not be applied strictly. Age and origin/location should not be hindrances in the grant of such loans.

A humanitarian approach in the processing of loans is necessary as they are intended to develop the human resources in the country, unlike the credit extended to produce goods and services, he said.

Since the revolutionary step taken four years back by the UPA Government, 12.5 lakh students have benefited to the tune of Rs 20,000 crore, he added.

Eliminating poverty

Speaking further, he said education is the key to elimination of poverty. And, the extension of credit is intended to raise the levels of knowledge and skills for all stratas of the society. Students and parents should shed their complexities and make use of the opportunity provided to lift themselves up in the social ladder, he said. They should feel confident of their capabilities and believe in themselves as capable of matching the talents of those in the developed countries.

Mr S.A. Bhat, Chairman and Managing Director, Indian Overseas Bank, Mr M.S. Sundararajan, Chairman and Managing Director, Indian Bank, and Mr D.L. Rawal, Executive Director, Canara Bank, spoke. Educational loans to the tune of Rs 24.93 crore were disbursed to 1,518 students on the occasion.

More Stories on : Credit Market | Education | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Goldman Sachs, Morgan Stanley arms need RBI nod

Rupee closes firmer

Luring home buyers

Private insurers see lower profitability

RBI warns primary dealers against leveraging

ICICI opens ATM at BHEL township

FDIC data hints at more financial trouble in US

Bond prices fall 55 paise

Priority sector lending in Ernakulam below target

Banks told to adopt flexible measures for education loans

Indian Bank extends more loans to rural students

Spinners’ association seeks 2-yr moratorium on bank loans repayment

Call rates higher

Insurance union opposes FDI hike

Vizag co-op plans more branches