Banks' education loan doubles to over Rs 577 cr

The education loan provided to the needy and meritorious students of the state doubled in the financial year 2008-2009 with banks making the education loan a focused priority.

Bihari students had secured admission in technical institutions, particularly those outside the state, and the banks provided them the education loan after ensuring that the money would be recovered when they get the job.

The education loan to Bihari students doubled to over Rs 577 crore in 2008-2009 compared to Rs 280.93 crore in 2007-08 and this indicates not only the banks' gesture in affording the students more education loans, but is also a parameter to show that Bihari students excelled in getting admission to good institutions.

There was 130 per cent rise in the number of students getting education loan in 2008-09 when 23,348 students were given education loan of over Rs 577 crore for studies in Bihar and other states. In the previous financial year, 10,181 students were given education loan of Rs 280.93 crore.

UCO Bank executive director B M Mittal told on Thursday that banks should give loan to needy and meritorious students after ensuring that the money would be recovered from them once they get employment.

A large chunk of education loan of Rs 204.36 crore was given by the State Bank of India to 10,611 students during 2008-09, followed by the Punjab National Bank which provided Rs 72.60 crore to 2,437 students and Bank of India -- Rs 57.12 crore to 2,758 students. Besides, 19 other public sector banks, a private bank, HDFC Bank, and four rural banks provided education loan.

The Uttar Bihar Khsetriya Grameen Bank provided Rs 13.45 crore loan to 505 students, the Madhya Bihar Kshetriya Grameen Bank provided Rs 11.98 crore to 421 students, Bihar Kshetriya Grameen Bank Rs 7.89 crore to 357 students and Samastipur Kshetriya Grameen Bank Rs 2.68 crore loan to 122 students. link