The Hindu : National : `Students denied loan can approach me'

Online edition of India's National Newspaper
Friday, May 18, 2007
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`Students denied loan can approach me'

Gargi Parsai

NEW DELHI: The Government will take action against banks that do not give education loans to students, Union Finance Minister P. Chidambaram told the Rajya Sabha on Thursday.

Replying to a debate on the Securities Contracts (Regulation) Amendment Bill, 2007, Mr. Chidambaram said, "If any student who satisfies the criterion, doesn't get a loan for education, he or she can write to me. All the person has to do is to write his or her name and the name of the bank on a postcard and send it to me. I will take action."

No collateral required

The Minister informed the House that for loans upto Rs. 7 lakh, no collateral was required. "The mother or the father of the student has to accompany him or her to the bank and just sign a form for the loan."

However, for loans above Rs. 7 lakh or the Rs. 15 lakh required for foreign education, collateral would be required.

Mr. Chidambaram said the education loan scheme was so popular that in three years loans taken by students had trebled from Rs. 4,000 crore to Rs. 12,000 crore.

Responding to the demand for relaxation in collateral for loans above a certain limit, the Minister said he would look at the recoveries before relaxing the guidelines.

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