More educational loans expected to be distributed

Updated on: Friday, May 29, 2009

Chennai: Although the economic downtrend has hit many sectors, the volume of education loans disbursed by nationalised and commercial banks has increased by over 50 per cent.

Coming out with lot of attractive schemes for students, most banks trust that this figure would increase further.

'The recession would not hit the education loan segment,' said Mr P. B.Narayanan, circle head of the Punjab National Bank (PNB) in Chennai.

'If the student has obtained good marks and has all the required documents, the loan will be immediately processed' In 2008-09, PNB distributed around Rs 1,559 crore as educational loan, an increase of 50.6 per cent compared to the earlier year.

In 2007- 2008, the PNB had distributed education loans to 28,692 students and in 2008- 2009 around 54,245 students availed this facility.

This year, the bank is looking forward to reach out around 70,000 students and is looking to distribute additional Rs 1,000 crore as educational loans. In Chennai circle alone, the bank had issued loans for more than 1,571 students and is hoping to increase the figure this year.

'Since the job market is not so sure we have to double-check the background of applicants and their ability to pay the money back,' said a senior official. The head office will tell us to release the funds but when it comes to reimbursing the money we have to take the responsibility. Krishna,

The Karnataka Bank is also taking positive steps towards providing educational loans for students

Kalvimalar

More educational loans expected to be distributed

More Education news