dear members of Inia Vision and action 2020 and ELTF groups
Education Loan Task Force is part of Action 2020 team under India Vision Group, formed to create awareness about the edu loan among students and parents.
Today, I collected the latest information about the education loan outstanding in all the banks operating in Tamilnadu. Bankwise details are given in the following link: I am also trying to get the national data from IBA.
http://action2020eltf.blogspot.com/2011/01/performance-of-banks-under-education.html
Public Sector Banks
The total outstanding under Education Loan as at 30th Sep 2010 is Rs.8841 crores (2.79% of total advances in TN). Public Sector Banks have contributed to the extent of Rs. 8512 crores (3.7%). Indian Bank stands top with outstanding of Rs.1950 crores (7.5 percent of the total advances in TN) and SBI has outstanding of Rs.1848 crores (3.1% of total advances in TN)
On behalf of ELTF, we are honouring Indian Bank and SBI in our 5th UnConference scheduled on 23rd Jan 2011. We appreciate all the public sector banks for their support to the young students.
Very unfortunately, Public Sector Banks do not take much interest in creating proper awareness among students and parents abaout the du loan., while they take huge initiative for car loans, housing loans, etc. If they take initiative of proper awareness campaign, it would be easy for them to manage the portfolio.
Private Banks
Private Sector Banks have done very badly in Tamilnadu. The outstanding of all the private banks is only Rs.340 crores (0.39% of their total advances in Tamilnadu).Lakshmi Vilas Bank and Tamilnadu Mercantile Bank have done more than 1% of their advances.
Scant respect by ICICI Bank towards edu loan
Though ICICI Bank has the maximum credit disbursement (Rs. 13415 crores) among the private banks, their contribution towards edu loan is only Rs.1.8 crores ( 0.01% of their advances in Tamilnadu). Axis Bank and Indus Ind Bank have also not contributed anything towards edu loan.
Submission to RBI and Government
From Education Loan Task Force, we have been complaining to Reserve Bank about the scant respect given by the private banks towards the edu loan segment. They do not have any social commitment and focus only on money making. We appeal to RBI and Government to step in and advise strongly the private banks also to contribute towards the nation building.
We have identified two major issues under Education Loan Scheme, which are causing inconvenience to poor people.
1. Interest subsidy scheme is available only for select professional and technical courses. Many poor students do not get the interest subsidy;
2. As the data shows, private banks give scant respect to the edu loan scheme. In many centres, when the wards are allotted to them by the Lead Bank, these private banks do not care for the plight of the students coming under their jurisdiction. Poor students are harassed by these Private Banks.
We have already requested the MPs who are supporting ELTF to take up with the Finance Minister / Prime Minister for solution. They have also agreed to take up personally.
Srinivasan
Convenor
Education Loan Task Force
www.eltf.co.cc
0 comments:
Post a Comment