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Medical aspirants in for a shock

Staff Reporter

Banks reluctant to finance those joining pvt colleges

BHUBANESWAR: Counselling for admission to MBBS courses has been postponed. But, after it resumes, parents of aspiring student may be in for a rude shock, as almost all banks have shown reluctance to entirely finance students seeking entry into private medical colleges. The main reason behind their reluctance is the exorbitant course fee structure declared by the government recently.

A fee of Rs. 4.5 lakhs per year for admission to private colleges is more than double the limit of study loan usually extended by banks over a period of five years.

According to bank executives camping on the campus of Orissa University of Agriculture and Technology (OUAT), the venue of counselling for technical education, an average Rs. 27 lakhs loan will be required by a student for the purpose. But banks can go up to Rs. 10 lakhs, while the remaining Rs. 17 lakhs would have to be borne by the student, which would be an uphill task.

“Nowhere in India, nationalised banks provide education loans of more than Rs. 10 lakhs. If a meritorious and needy candidate comes, we cannot finance the full amount,” M.K Baig, an executive of Union Bank of India, said here on Tuesday.

Banks were also apprehensive over the repaying capacity of the aspiring students. Mr. Baig elaborated: “If at all the Rs. 10 lakhs ceiling is lifted, can a student start repaying about Rs. 30,000 per month on account of interest alone after he comes out of the college? As per the bank process, every aspect will be looked into.”

State Bank of India executive R.C. Das said the bank had received 17 enquiries from students aspiring for health sector career and all of them were taking admission in different government colleges.

As many as eight nationalised banks camping on OUAT campus were more happy to give education loans to engineering students than students trying for private medical colleges. “About 75 per cent of loanees are from engineering segment, while the rest are from management education,” Mr. Baig said. Meanwhile, several students could not report to government medical colleges as they were not communicated about postponement of counselling.

The process was suddenly stopped due to last-minute increase in seat strength from 107 to 150 in three government-run medical colleges in the State.

“We have gone to report at SCB Medical College at Cuttack on Tuesday but college authorities have sent us back due to confusion over counselling. Several of us have come from far-off places,” Ajay Kumar Padhi, a parent, said.

For the first time, government medical colleges handed over the bond papers to students. As per the agreement, students would have to serve the first five years of their service in the State. If they violated the agreement, they would have to face action.

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