Banks want to extend lending to college students, as schooling loans are investments to construct the way forward for India, former finance minister P Chidambaram mentioned on Twitter immediately.
The Indian Express had on Thursday reported concerning a slowdown in schooling mortgage disbursals as banks have began to report a rise in defaults, and that the federal government had requested banks to step up lending to the schooling sector. “Government is reported to have instructed public sector banks to step up the disbursement of education loans. Banks fell into the habit of rejecting loan requests because of the neglect of the government in the last 8 years. Banks are reported to be reluctant because of rising NPAs in education loans,” Chidamabaram mentioned in a sequence of tweets.
This, he mentioned, “is a specious argument”. He tweeted, “Of the loans that are outstanding, only 7.82 per cent (Rs 6246 crore) is NPA.” “This is nothing compared to the Rs 5,24,000 crore in 517 cases sacrificed by the banks under the IBC process. In the case of corporates, the loans waived are called ‘haircut’. In the case of students, it is called ‘default’,” Chidambaram mentioned.
“If I were in Government, I would have cracked the whip. Education loans are an investment in the younger generation for the future,” the previous finance minister wrote on Twitter.
