The State Finance Minister, Mr K.M. Mani, has requested bankers to reschedule educational loans.
The Minister made this request while inaugurating the State Bank Level Bankers' Committee (SLBC) here on Monday.
His concern was about loans disbursed during 2003-2009.
The Minister had announced in the Budget speech that the State Government would take over the outstanding interest liability on these loans.
It had mulled moving the entire loan portfolio to its books but stopped short after realising the size involved.
The Minister suggested that the banks peg down the applicable interest, which might prompt servicing of the loans.
Meanwhile, bankers have reacted positively to the Minister's suggestion.
An SLBC spokesman said member banks would be asked to furnish details of educational loans disbursed between 2003 and 2009.
On its part, they have requested the State Government to take over loans advanced to fishermen.
If this is not possible, it should lift the moratorium on recovery proceedings in the sector, the spokesman said.