RBI Governor, (Reserve Bank of India), D.Subba Rao said "On A Proposal to remove problems faced by students in obtaining education loans, government was working on a scheme under which it would extend guarantee for advances up-to Rs.7.5 lakhs".
On the interactive programme which was organized by the RBI and ABP News he said "There are grievances of students not getting loans or encountering problems. Understanding that there is a problem, the government is now working on a guarantee scheme".
"For loans upto Rs.7.5 lakhs where there was no third party guarantee or collateral security there would be guarantee given by the government. Well, It is yet to be launched. Hopefully, it would come and resolve some of these issues", he said.
He further informed that, on paper for loans upto Rs.4lakhs there should be no collateral security or guarantee. For good students and good institutions it is easier to get loans than for students not so good or institutions not rated so high. But our endeavor is irrespective of level of achievements of institutions, they must have access to education loan upto Rs. 4 lakhs.
He also explained that RBI wanted to deepen penetration of banks either through bank branches or Business Correspondents since more than 50% of the households in the country did not have bank accounts . Nothing that RBI and the Government had initiated several steps towards financial inclusion with a view to ensuring that every household had bank accounts. It becomes successful only when banks see it as business opportunity.
On security and safety of electronic transactions, he said "Securing security is shared responsibility. It is not exclusive concern of RBI alone. It is responsibility of commercial banks and to the customers." All the three should share the responsibility and work together to ensure that banking transactions especially electronic and mobile transactions were safe, he added.
Very soon, the govt shall approve a guaranteed Scheme for students Education loan. This is an important scheme to bring out higher education reach more students who opt to study higher in India.