NPAs in education sector on the rise
New Delhi, Aug 12 (PTI) Bad loans in the education sector have shown a rising trend in the past three financial years with NPAs nearing 9 percent of the outstanding by March 2018, according to an official data.
While disbursing the loans, banks follow the Indian Banks Association's (IBA) model education loan scheme, which provides for repayment period of up to 15 years.
Under the scheme, there is a provision for a one-year moratorium on repayment after completion of studies.
Besides, there is a moratorium on repayment on account of spells of unemployment, under-employment, 2-3 times during the life cycle of the loan period.
In the last financial year, public sector banks (PSBs) disbursed Rs 13,470 crore loan to 7.86 lakh students.
As per another set of data, 1.5 lakh students from Tamil Nadu availed education loan last year followed by Kerala (99,314) and Karnataka (90,630).
The finance ministry recently informed Parliament that in order to facilitate easy processing and disbursal of loans, Vidya Lakshmi Portal was launched where students can view, apply and track their education loan application.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)