Only three students received education loan in last four months

Four months ago, the Central Government started new online initiative to boost education loans in the country. However, the initiative seems to have failed, as eight banks loaded with forty-seven education loan schemes, have given only three education loans out of more than 500 applications under  fast track electronic platform, Pradhan Mantri Vidya Lakshmi Karyakram.

 

Under new initiative, all banks have been brought on one platform with the purpose to make education loan easier and faster. However, department of financial services of Ministry of Finance documents show that as on 12th November 2015, only two banks- Canara and Dena Bank have disbursed three education loans under this initiative. Whereas SBI, IDBI, Bank of India, UBI, Syndicate bank and Indian bank have not approved and disbursed a single education loan.

 

State bank of India has received 151 applications for education loan through this ambitious fast track project, but has not approved and disbursed any of them. Banking expert Amarjeet Chopra said, NPA rate in the education loan has been very high and may be they (Banks) are shedding away from education loan but education loan has to be increased. A finance ministry source says that banks have more than 30 lakh student loans and around 10% loans are under Non Performing assets

 

Government has constantly been building up pressure on public sector banks to finance education loan for the past 7 years but education loan has dropped more than 50% during the years.A bank official on conditions of anonymity said that private banks should also share education loan as social responsibly. Public banks have more than 90% education loan portfolio and private sector is almost absent.

 

An official document shows the Vidya Lakshmi Portal has more than one lakh unique visitors and twenty three thousand students have registered so far. At least 24 banks are affiliated with this initiative and 8 banks are ready to receive the application. All the remaining banks (which are yet not integrated with the portal) are requested to take steps to integrate with the portal.

 

Finance Minister Arun Jaitley proposed to set up a fully IT Based Student Financial Aid Authority, in the Union Budget for 2015-16. Vidya Lakshmi (www.vidyalakshmi.co.in), a single window new initiative of fast track education loan disburses system was launched on the eve of Independence Day in response to replace traditional education loan system with more transparency and fast approval. It is first of its kind portal providing single window for students to access information and make application for educational loans provided by banks as also government scholarships.

 

The online initiative has been developed and maintained by NSDL e Governance Infrastructure Limited (NSDL e Gov) under the guidance of Department of Financial Services, Ministry of Finance, Department of Higher Education, Ministry of Human Resource Development and Indian Banks Association (IBA).

 

Latest Articles

  • Secondary education will empower India in the 21st century
    Secondary education will empower India in the 21st century

    Examination season is stressful for both students and their families, and the stakes could hardly be. Read More

  • Types of allergies
    Types of allergies

    Types: Hay fever: Allergic rhinitis, also known as hay fever, is an allergic response to pollen or . Read More

  • How important is HTML5 for Web Developers?
    How important is HTML5 for Web Developers?

    HTML5 is a fifth and current version of the HTML standard developed for organizing web page content. Read More

  • A chance to work with Reserve Bank of India
    A chance to work with Reserve Bank of India

    The Reserve Bank of India (RBI) has invited applications from eligible candidates for filling up the. Read More

  • An overview of changes in Salesforce Developer Certification examinati
    An overview of changes in Salesforce Developer Certification examinati

    There have been changes in Salesforce Developer Certification examination. This article will focus o. Read More

Latest Classified

  • Fast and Easy Payday Loans Available, Apply Now
     Are you looking for Personal/Business loan? We offer loan without hassle or fax. To get your desired loan amount, contact SkyGroup FinAid via: finance.mortgage@skygroups.org and get your loan sa
  • Job Openings for Nursery Teachers in Delhi
    Job Opening for the post of Play Schools/Nursery Schools of Delhi/NCR. We are looking highly motivated and enthusiastic nursery and play school teachers. Candidates should possess good communica
  • Fume Hood Scrubber
    A fume hood scrubber provides excellent air pollution control for water soluble chemicals present in the laboratory fume hood exhaust fumes. These fume hoods are designed to save space and prov
  • URGENT OPENING-SR.PHP DEVELOPER/TEAM LEADER
    Dear Candidate, A Client of Rely-on Solutions is a leading provider of Offshore Software Development, Project Outsourcing and IT consulting services since 1994. We are inviting dedicated professional
  • PHP Team Lead opportunity in Ahmedabad, Gujarat
    This is with reference to your resume we have come across a job portal. We are an Ahmedabad, Gujarat based HR Consultancy firm serving into IT and Software industry.One of our software clients is lo

Top Featured Institutes