Educational Loan Is Also A Equal Right-Chidambaram

Nowadays, Education Loan has become the most important medium for pursuing Higher Education. P.Chidambaram, Finance Minister on Saturday told that Education Loan is a right to every student and the officials with the Public Sector Banks (PSB's) who are found rejecting a large number of applications may be penalized for denying the loans.

Chidambaram in Delhi told reporters that "Bank Account is a right of an individual. It is not a gift of a bank and bank loan is a right of every student. No application from a deserving candidate, if he/she meets the parameters, should be turned down by the Bank officer receiving it. If a loan is not provided, the decision can be taken only at one level higher to the officer receiving the loan application".

The agenda of meeting contained four issues relating to education loans including expansion, time-bound disposal of applicants, education loans for meritorious students admitted under management quota and loans for professional diploma courses.

According to Chidambaram, under the new policy if an increase in education loan rejections is detected then there can be disciplinary actions against the branch manager. He said "One case of application rejection or two cases may be an oversight issue, but if the branch reaches a critical number like five or ten cases of rejection then there can be action against the manager".

"It is very important that every students who meets the parameter must get a loan because it's a RIGHT", he added. Well, in order to improve this the PSB's are working up on the modalities surrounding the Budget announcement of a credit guarantee fund for education loans. They are also working on a mechanism for rating of institutions, courses and students for loan payment.