Banks must increase lending to students as education loans are investments to build India’s future, former Finance Minister P. Chidambaram said on Twitter today.
The Indian Express on Thursday reported a slowdown in student loan disbursements as banks began to report an increase in defaults and that the government had urged banks to increase lending to the education sector. “The government is said to have ordered public sector banks to increase student loan disbursements. Banks have fallen into the habit of rejecting loan applications due to government negligence over the past 8 years. Banks are reported to be cautious on student loans due to rising NPAs,” Chidamabaram said in a series of tweets.
This is “a flimsy argument”. He tweeted: “Of the outstanding loans, only 7.82 per cent (Rs 6246 crore) are NPAs.” became. In the case of companies, the forgiven loans are referred to as “haircuts”. In the case of students, it’s called ‘Default’,” said Chidambaram.
“If I were in government, I would have cracked the whip. Education loans are an investment in young people for the future,” wrote the former finance minister on Twitter.
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