The Hindu : Tamil Nadu / Chennai News : You can bank on help for pursuing higher studies

Online edition of India's National Newspaper
Monday, Jun 02, 2008
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu - Chennai

You can bank on help for pursuing higher studies

Vidya Venkat

— Photo: K. V. Srinivasan

Extending support: Parents of students seeking education loan at a nationalised bank in Triplicane.

CHENNAI: Bright students need not anymore give up their ambitious plans for higher studies, citing lack of finances . And no longer do desperate parents need to approach unhelpful relatives or pledge jewellery for funding their children’s studies. This, because all scheduled and nationalised banks are generous in disbursing educational loans.

The Indian Bank’s Association in its guidelines on educational loan scheme has said: “It should be the endeavour of all [the banks] that no deserving student is denied opportunity to pursue higher education for want of financial support.”

M.S.Prakash, General Manager, Indian Overseas Bank, said banks generally looked out for merit and the inclination to repay from applicants. If these two criteria are satisfied, there should not be any problem in getting a loan, he said.

Another important criterion is that the course should be approved by a government-recognised body. The maximum loan sanctioned for studying in the country is Rs.10 lakh. For studying abroad, a maximum of Rs.20 lakh is given. For loans up to Rs.4 lakh, no collateral is required. Banks even fund gadgets such as laptops if it is necessary for the course.

In most banks, the disbursal of educational loans is handled by the branch manager. It is not necessary for one to be an account holder in the bank to avail themselves of a loan.

However, some people feel things get easier when there is someone to “pull the strings”. A bank employee, requesting anonymity, told The Hindu that though banks do not formally insist on recommendation, it does help especially when the loan amount is high.

The less affluent could find themselves at the receiving end of such practices. R. Rajasekharan, an autorickshaw driver , said a bank in Avadi rejected his daughter’s loan application because he could not produce an income certificate.

“When I told them I was an autorickshaw driver and could not produce one, the bank officials suggested I produce a certificate somehow or the other,” he said. “After running around for a few days, I gave up. I am educating her on money borrowed from a friend now,” he said.

The story of M.Saravana Kumar, however, comes across as inspiring.

The boy’s parents iron clothes in a locality in Washermenpet. The 23-year old Mr.Kumar, an engineering graduate, got a loan of Rs.17 lakh from a bank in Adyar to pursue a Masters in Science (M.S.) two years ago. His mother M.Senbagam said the bank did not demand any security or margin. “He had a brilliant academic record and the bank officials were impressed. Also his college management had put in a word of recommendation on his behalf,” she said. Saravana is in San Francisco today and has landed a plum job with a leading software company there.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu