Students Have Trouble Getting Education Loans This Admission Season
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    • Students Have Trouble Getting Education Loans this Admission Season
    Despite claims by the Union finance ministry that education loans are available for the asking, many students find this untrue. Parents and students who have applied for an educational loan this admission season are finding that banks are often denying loans or trapping them in unending procedural requirements. Students who had joined professional colleges under the management quota are the worst hit with some bank officials doubting their academic credentials and capacity to repay the loan after their study period. Officials at the Reserve Bank of India acknowledged that a sizeable number of complaints have been made over the past year pertaining to non-sanction or delayed disbursement of education loans.

    Most commonly faced problems by families while applying for educational loans are that with banks give only one educational loan per family, which is problematic in a country like India where there are larger families, or banks don’t give loans to people who already have a loan from another bank. However, RBI authorities say that though banks might have certain limitations in sanctioning loans, they cannot refuse it to students. According RBI after collecting all details, banks should lend credit in 15 days. Refusal to accept loan applications or delay in sanction or disbursement will attract the attention of the RBI unfavorably. The number of complaints from the aggrieved public in 2008 rose to 10,381 in 2009, with an average of 1,200 complaints a month. A sizeable number of them related to non-sanctioning of educational loan.
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