Kerala CM calls for common policy for education loans

Monday, Jun 22, 2015,18:20 IST By metro vaartha A A A

Thiruvananthapuram | Kerala Chief Minister Oommen Chandy today asked commercial banks to formulate a common policy for disbursement of education loans to students. Speaking at the State Level Banker’s Conference here, Chandy said presently banks were following different procedures for disbursing education loans.
The interest rate and re-payment conditions differ from banks to banks and even branches of same banks. This has created lot of problems for students to get loans, he said and asked banks to prepare comprehensive policy for education loans.
Expressing concern over attitude of banks in not coming forward to support state government rehabilitation package for returnees from strife-hit countries like Syria, Libya and Iraq, Chandy said only Canara Bank and Union Bank extended assistance. Chandy also wanted banks to extend support to different housing schemes of the government.
Meanwhile, the SLBC was told that the NRE deposits in commercial banks in the state has touched an all time high of Rs 109603 crore and total deposits stood at Rs 319890 crore as on March last. Total advances as on March 2015 was Rs 218706 crore and credit-deposit ratio of commercial banks touched 68.37 per cent and deposit ratio stood at 71.18 per cent.
Commercial banks in the state have disbursed Rs 97691 crore during 2014-15. This is 104.90 per cent of the disbursement target of Rs 93124 crore for the period.
Total advances to priority sector was Rs 128655 crore. This is 58.83 per cent of the total outstanding under advances against the national norms of 40 per cent.
The annual credit plan for the state for 2015-16 is launched with a target of Rs 104938 crore for disbursement for priority sector out of which agriculture disbursement target is Rs 47901 crore. Secondary sector disbursement target is Rs 19170 crore and for other sectors, disbursement envisaged is Rs 37,867 crore, he added.

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