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

  • Tips To Score Highest Marks in 12th Board Exams
    Tips To Score Highest Marks in 12th Board Exams

    Tips to Score highest Marks in 12th board exam will surely help a lot to many students who wish to b. Read More

  • Permanent laser hair removal, best laser hair removal clinic Delhi
    Permanent laser hair removal, best laser hair removal clinic Delhi

    We all want a neat and tidy look on the whole, but unwanted body hair is always a big embarrassmen. Read More

  • True Friendship means Success : Friendship SMS
    True Friendship means Success : Friendship SMS

    I am the firm believer in friendship and do you know there are many examples in the world just b. Read More

  • Five Interviewing Turnoffs To Make Sure You Avoid
    Five Interviewing Turnoffs To Make Sure You Avoid

    Simply being qualified for a job may get you an interview, but it wont get you the job itself. Thats. Read More

  • University Told Shun mediocrity stem African brain drain
    University Told Shun mediocrity stem African brain drain

    African universities must shun mediocrity if they are to stem the brain drain of academic talent fro. Read More

Latest Classified

  • Computer Operator for Av Services in New Delhi
    AV Services Pvt. Ltd. is looking for a Computer Operator Executive. The job location is Janak Puri. The candidate should be young (maximum 25 years old), good looking, presentable, have good commun
  • Web hosting plans for your business or family website
    Cheap Windows Web Hosting Services, Our Web Hosting Plans includes Linux Web Hosting, Windows Web Hosting, MSSQL Web Hosting, ASP.NET Web Hosting, MySQL Web Hosting ... WHM - cPanel Reseller hosting
  • Livinggifts.co.in explore Green Gifting along with Flowers
    Livinggifts.co.in is spreading message and have come up with options for Green Gifting that include Natural plants that stays together and lives together. Jagjyot Singh Livinggifts.co.in have been
  • Traditional Rakhi Hamper by livinggifts.co.in
    Designer Rakhi, 500 gms dry fruit Rakhi is a very special day for brothers and sisters, when the sister celebrates her emotional bonding by tying a holy thread around the wrist of her brother.
  • Expert Arc: Manufacturing & Repairing.
       Expert Arc: Manufacturing & Repairing. We are manufacturers of all types of Welding Machines,Welding Transformers,Welding Rectifiers,co2/MIG Welding Equipment,TIG Welding Equipment.

Top Featured Institutes