AIBA guidelines for sanctioning education loans not acceptable to Kerala

Updated on: Saturday, June 23, 2012

Kerala Chief Minister Oommen Chandy expressed concern over denial of educational loans by banks and said the guidelines prescribed by the All India Bank Association for sanctioning loans were not acceptable to the state.

Responding to a calling attention of Thomas Unniyadan (KC-M) seeking steps to end the reported discrimination by banks in sanctioning educational loans, he said, the state government would take up the matter with banks.

With a view to arriving at a consensus on different aspects to be presented before the banks, a meeting of MLAs, who were interested in the matter, would be held on June 25 here, he said.

Government was of the view that banks should take a liberal attitude for sanctioning educational loans, he said.

Earlier, banks had only one condition the institutions for which admission was sought should be a government recognised one, for sanctioning loans. However, in due course they added more restrictions, he said.

The Cooperative banks, which were denied permission to sanction educational loans, have now got consent, Chandy said.

State Rural Development Minister K C Joseph said district level monitoring cells would be constituted to address the grievances of students applying for educational loans.

Unniyadan brought to the notice of the House the difficulties and red-tape faced by students and parents to get educational loans from banks, even though Centre had announced the scheme, and wanted the state government to intervene in the matter.

AIBA guidelines for sanctioning education loans not acceptable to Kerala

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