The Hindu : Andhra Pradesh / Hyderabad News : Extend educational loans, says YSR

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Thursday, Jun 28, 2007
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Extend educational loans, says YSR

Chief Minister addresses bankers meeting

Photo: Mohd. Yousuf

Saying it with flowers: Chairman and Managing Director of Andhra Bank K. Ramakrishnan welcoming Union Minister of State for Finance Pawan Kumar Bansal and Chief Minister Y.S. Rajasekhara Reddy at the State-level bankers committee meeting in Hyderabad on Wednesday.

HYDERABAD: Chief Minister Y. S. Rajasekhara Reddy advised commercial banks to liberally extend educational loans to all students pursuing professional courses.

Addressing the 161st State Level Bankers Committee (SLBC) meeting held here on Wednesday, the Chief Minister said: I receive petitions daily from several deserving students who complain that they are not able to access bank loans to pursue higher education. Banks should ensure that no student is denied loans.”

He said banks could set up counters in all colleges and students made to repay loans on completion of the course and securing employment. Education loans should reach the same level of saturation like the Indiramma programme and the pension schemes of the State Government, he said.

Referring to the Rajiv Swagruha housing programme, Dr. Reddy said 1.74-lakh houses would be constructed, including 45,000 units this year itself. He urged banks to liberally extend loans to this ambitious housing programme. Under the Indiramma programme, an amount of Rs. 7,000 crore was projected to be financed during 2007-08.

The Chief Minister urged the Centre to see that the differential rate of interest was capped at four per cent so that the State benefited from it. He said that under the financial inclusion, at least two panchayats in each district should be covered by opening ‘no frills’ accounts. Union Minister of State for Finance Pawan Kumar Bansal impressed upon the State to go for total financial inclusion by opening ‘no frills’ bank accounts. This included opening of saving bank accounts, issuance of general purpose credit card, strengthening the SHG lending and also distribution of smart cards to eligible account holders. Referring to educational loans, Mr. Bansal said the Reserve Bank of India (RBI) had recently issued instructions stating that those pursuing pilot training course were also eligible for loans.

Chairman and Managing Director of Andhra Bank and president of the SLBC K. Ramakrishnan said the credit deposit ratio of the State stood at 87.05 per cent at the end of March 2007 against the RBI norm of 60 per cent.

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