Monday 27 August 2012

Can Education Loan Make Right Of Every Student

Finance Minister P Chidambaram said on Saturday a loan education is a right of every student and staff with public sector banks (PSBs) that are rejecting a large number of applications can be penalized for refusing loans.

"Bank Account is an individual right. This is not a gift from a bank loan and the bank is the right of every student," Chidambaram told reporters in New Delhi after a meeting with the heads of banks public sector (OSP), adding that the issue of student loans is close to his heart

"No request for a deserving candidate, if he ***** she meets the parameters that must be turned down by the agent (bank) its receipt. If a loan is not given, the decision may be adopted that at a higher level than the agent who receives the loan application, "Chidambaram said.

It was the first meeting between Chidambaram and heads of PSO since he took charge of the Ministry of Finance August 1.

The agenda of the meeting included four questions about student loans, including expansion, time-limited elimination of applications, education loans to deserving students admitted under management quota and ready for courses leading to a professional degree.

According to Chidambaram, under the new policy, if an increase in the release of education loan is detected, then there may be punitive actions against the Branch Manager.

"A case of rejection of the application or both can be a monitoring problem, but if the industry has reached a critical mass as five or ten cases of rejection, then there may be action against the director," said Chidambaram said.

"It is very important that all students who meet the parameter should get a loan because it is right.

PSBs are working on the modalities surrounding the budget announcement of a credit guarantee fund for student loans. They also work on a scoring mechanism institutions, courses and student loan disbursement.

Source: http://forums.sfinances.com/Thread-Can-Education-Loan-Make-Right-Of-Every-Student

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