Education loans touch Rs 7,000 crore mark in Kerala

Updated on: Wednesday, May 02, 2012

The outstanding amounts on account of education loans of the banks in the state have piled up to Rs 7,035 crore — dues from 3.5 lakh loanees — of which Rs 447 crore remained as non-performing assets from 24,850 loanees. Its implications point to a dangerous scenario, social activists say.

“The mounting education loan dues are pushing Kerala to a serious crisis. No surprise if the state witnesses education loan defaulters committing suicide.

Save Education committee secretary M. Shajirkhan, said, it’s high time the state government seriously intervened in the matter.”

The banks are charging an interest of 12 per cent to 15 per cent on education loans.

The state government has recently decided to take over the interest due on education loans availed by students hailing from financially weak families during the 2003 – 2009 period.

Shajirkhan said the mounting education loan was the outcome of the government lifting all controls on the education sector.

He demanded that all these loans be written off and the state and the Centre meet the students’ education expenditures.

Among all the banks, the State Bank of Travancore disbursed the maximum loans over these years. It disbursed Rs 2263.34 core as education loan till March 31, 2012.

Over these years, the education loan outstanding of all the banks had been witnessing a steep increase. In 2007-08, the total outstanding stood at Rs 2,612 crore, which increased to Rs 7,035 crore in 2012, an increase by over 250 per cent.

Education loans touch Rs 7,000 crore mark in Kerala

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