The State does not intend to implement ‘service area approach’ for educational loans, according to K.C. Joseph, minister for information and public relations.
He said this while briefing newspersons on deliberations during an interface between Chief Minister Oommen Chandy and MPs representing the State.
PARLIAMENT SESSION
The meeting was held to discuss various issues concerning the State that the MPs should focus on during the impending winter session of Parliament.
The decision on service area approach to education loans had been arrived at earlier during a meeting convened by the State Government. Representatives of various banks and the regional office of Reserve Bank of India had participated in the meeting, the minister said.
The State Government had put forward clear and specific proposals to bank representatives with regard to disbursal of educational loan. The Minister reiterated that the Government would proceed strictly and promptly against banks found violating these norms.
SPECIFIC GUIDANCE
Specific guidance to applicants should be prominently displayed in front of bank branches. Related pamphlets should be distributed to the applicants, too.
No collateral must be insisted for loans of up to Rs 4 lakh. In no case shall applications for loans for admissions to recognised institutions be declined.
The minister said that the bankers have agreed that loans would be made available to those securing admissions both under the merit and management quotas.
This initiative has been taken in the context of the typical situation obtaining in the State, he added. He also sought to reiterate the stated position that fees for the same course across institutions should be rationalised.
KOCHI METRO
Significantly, default of educational loans would not any more invite disciplinary action against the manager of the originating branch.
On Kochi Metro project, the minister said that public sentiment in the State favours Delhi Metro Rail Corporation (DMRC) as the implementing agency.
Chief Minister Oommen Chandy and Transport Minister Aryadan Mohammed will travel to Delhi to officially convey this to Kamal Nath, Union Minister for Urban Development, and Sheila Diskhit, Chief Minister of Delhi.
This meeting will happen ahead of the scheduled board meeting of DMRC, which is on November 27, Joseph said.
> vinson.kurian@thehindu.co.in
Published on November 15, 2012
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