Will the PSU banks listen to what Kapil Sibal says?
PSU Banks are generating profits out of student loan at premium interest of (12 -14)% similar to that of any business commercial term loan provided to self employees or companies.
IN THE name of education, a priority area of national building, banks including PSUs are luring the students and their parents into a debt trap. It is unfortunate that not only private commercial banks but also PSU Banks are engaged in luring students in the name of education loan. Then, if no answer is received, they should go for a Writ Petition in the High Court against banks which lured the student by providing such high interest loan as that of any Business Commercial Term Loan and also make the RBI a party to the writ petition.
Then maybe the PSU bank Management will listen to what our HRD Minister Kapil Sibal is voicing.
Why should an education loan be opted for such short repayment tenure? Since the education loan for student comes under a more priority sector or similar priority to that of Home loans, why not all education loans executed from 2004 be restructured immediately to longer tenure of 20 to 25 years instead of 7.5 yrs as that of any high premium interest loan of any Business Commercial Term Loan? Besides the education loan must be a loan with bear minimum interest so as to make up for the cost of funding the education loan.
Education Loan cannot be treated as a high premium interest loan of any Business Commercial Term Loan. All education loans from 2004 till date must be immediately rectified and restructured like the Home loan tenure.
COMMENTS
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Jena
I think all Indian students and their parents should really start knowing facts of life. I also request HRD Minister to immediately introduce a legal paper in class 12 level so that all student can learn some basic indian laws, so that they don't fall prey in their future life. Moreover HRD Minister must take this issue very seriously and immediately raise the matter in parliament, I am sure a bill can be passed very smoothly with both ruling and opposition vouching for the student. The matter is very serious .
sur women, children & rural welfare society
The PSU Banks and RBI has now become the biggest law breaker in India. The management of psu banks and rbi should know that Govt. of India is levying 3% as education tax for every billing. How can then RBI and its PSU bank charge such high premium interest of min 10.5% on education loan and make it at par like any business commercial loan interest term and tenor period. Govt should immediately put CBI / Vigillance on all PSU Banks and RBI with respect to education loan and advice restructuring all education loan its interest amount and tenor period that the banks executed from 2004 the UPA Govt -1 year
AMBAR ROY
Al - Hindi, Eyalla row, I am sure India and its institution like RBI, PSU Bank read Law books and understand what it priority sector . Indian Govt. is already taking Tax on education @ 3 % on every billing. Does PSU Bank and RBI know about the same, or they are simply drawing Government salary and passing time in the AC fitted Bank premises. All student forum should ask Bank Management why they are doing wrong thinks?
BHOOTNATH KHENHEDA
wah wah gd for students if implemented as per mr. sibal s suggestion,education sholud not be treated as a profitable business
AMBAR ROY
All ready students are writing suicide notes , since PSU banks took education loan in Dept recovery Tribuls. I have recieved a lot of comments with respect to PSU banks and RBI's ignorance of Indian law
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