Educational loans worth Rs 202 crore distributed

Lead bank officials have informed the district-level banking special consultative committee that they have distributed Rs 202 crore as educational loans during this academic year so far.


The meeting was held here as per government instruction after complaints regarding distribution of educational loans increased. Lead bank officials said that during 2011-12, Rs 1,068 crore was distributed. During 2010-2011 and 2009-10, the figures were Rs 856.50 crore and Rs 686.34 crore respectively.


ADM P K Girija, who presided over the function, said that a help desk is functioning in the Collectorate to deal with complaints regarding educational loans. The planning officer will communicate with the concerned banks and settle the complaints.



In case of revenue recovery, the amount should be collected only after informing the Revenue Department officials. She also asked the banks to deploy liaison officers in banks to assist loan seekers.


Lead bank manager Muraleedharan said that currently, all banks have liaison officers to assist loan applicants and the circulars issued by the government are displayed on the notice board. More than 150 awareness classes on educational loans were organised in the district.


As no clear instructions are available on loans to be issued to the students in management quota, the banks are giving loans as per the norms of respective boards, he added.


Jameela Prakasam MLA pointed that many private colleges were collecting excess fees from the students. The course fee, loan amount and expected salary should be matching. The banks should convey these matters to the Central Government, she said.


Deputy Collector John Samuel and representatives of various banks also took part in the meeting.