Education Loan Interest: If you are also thinking of taking an education loan, then let us tell you that now banks are going to take special precautions. It is known that the Non-Performing Asset (NPA) in the Education Loan Portfolio has increased by about 8 percent. There are more such loan accounts across the country, which have not been able to pay their installments on time. Due to this, banks are now very cautious and are taking special care in sanctioning such loans.
NPA 82,723 crore
NPAs in the education loan category of other banks, including public sector banks, stood at 7.82 per cent at the end of the June quarter of the current financial year. The outstanding education loan till the end of June was around Rs 80,000 crore.
According to government bank sources, due to high NPAs, vigilance has started at the level of bank branches in sanctioning education loans. The total education loan outstanding of all banks as of March 2020 was Rs 78,823 crore, which has increased to Rs 82,723 crore as of March 25, 2022. The Finance Ministry had recently convened a meeting of public sector banks to take stock of the education loan portfolio.
Commercial bank’s NPA is high
According to a letter from the RBI, there has been a sharp increase in the NPAs of education loans given by commercial banks in India in recent years, which is a matter of concern and the growth in loans given by banks for higher education in the country has been greatly affected. Might be possible.
In this letter issued in June 2022, it was said that about 90 percent of education loans in India are given by public sector banks. As of March 2020, the share of private sector banks in the total outstanding dues of education loans is about 7 percent and that of regional rural banks is 3 percent.
this is the reason
Jyoti Prakash Gadia, Managing Director at Resurgent India, says that the number of graduates coming out of colleges is much more than new employment generation, due to which education is not being paid on time.