• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

It is remarkable that banks have given about Rs 20,000 crore education loans to more than 12 lakh students in the country. One is also happy to note that the Finance Minister, Mr P. Chidambaram, has said the education loan formalities would be simplified from this academic year. Though some of the banks are doing their best to sanction loans, obtaining the loan involves a lot of delay. Many underprivileged students take loans from private moneylenders at exorbitant rates with the hope of getting bank loans for repayment.

Giving education loan without any collateral is, no doubt, risky. Insurance companies with a nominal premium can act as surety for the loan. Education loans have been granted on a larger scale only over the past few years. In a few years’ time, the amounts returned may be re-circulated to meet future demands. Also, an Education Development Bank, similar to that created for housing and agriculture, can be set up not only to give loans to students but also to finance new colleges and improve the infrastructure of existing colleges.

V. S. Venkatavaradan Salem

More Stories on : Letters | Education

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

Stories in this Section
IFRS: Standard of the future

Copyright © 2008, 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