Govt asks banks to cut formalities in education loans

Sunday, Apr 26, 2015,20:34 IST By metrovaartha A A A

New Delhi | Continuing with the interest subsidy scheme for  students, government has asked banks to give educational loans to all ‘A’ rated  universities with minimum formalities.
The banks have also been advised to  keep in view the primary societal interest in granting educational loan.
”  List of all ‘A’ rated universities, colleges and technical institutions has been  forwarded to Indian Banks Association (IBA) for onward circulation to all banks  so that students getting admissions in these institutions could get educational  loans with minimal formalities,  according to the sources.
Moreover, the  government has decided to start a Credit Guarantee Fund Scheme for Education  Loans (CGFSEL) to guarantee collateral free loans sanctioned to deserving  students for higher studies.
The sources also said that Canara Bank would be  the nodal bank for all grievances pertaining to interest subsidy and resolve the  issues centrally in consultation with the branches of the banks directly.