Banks on the lurch for more prospective students

Updated on: Friday, July 15, 2011

To facilitate educational loans for students, 9 banks have established their special counters in Anna university campus.

Karur Vaisya bank, Bank of Mysore, UCO bank, Indian bank, Dena bank, Bank of India, Oriental bank of commerce, Canara bank and Central bank of India have counters at the Anna university campus. They provide recommendation letter to the manager of the bank, which is located near the residence of the student after collecting details of students like name, address, selected college, selected subject and cut-off.

According to Corporation bank officer Vijay, 'We offer bank loan from 4 lakhs to 20 lakhs for students. Students should apply with all required details of fees for 4 years and other expenses. We ensure that students, who register with us get loan for their studies'.

'So far, 316 students have applied for educational loans through us. Last year, we offered loans for 900 students, among all those who had registered at our special counter. This year, we have plans to provide loans for more number of students. Students need not repay the loan amount in the next 4 years, but needs to repay it immediately after 6 months getting a job. However, if he fails to get a job, 1 year will be the maximum grace period', said Indian bank manager Venkatraman.

Every bank has announced its own interest rates for educational loans. Most banks have fixed the interest rates from 12 to 13 percent. According to central government instructions, the banks should not ask for surety and parent income for processing educational loan.

All students, studying affiliated course in affiliated colleges are eligible to get bank loans.

'Though government insisting on guarantor free procedure for educational loans, practically, banks are following the rigid policies in providing educational loans as none of the banks do not want to take risk financially', told undisclosed bank official.

Banks on the lurch for more prospective students

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