Finance Minister to take up insurance cover for study loans
Date:02-11-2009
Union finance ministry will give attention to a scheme to insure study loans.
Banks that were aggressive on education loans in the past couple of years are feeling difficult now, as job market conditions yet to show signs of recovery.
A number of banks are fearing an increase in non-performing assets from these loans in the near future. The biggest worry is loans taken by students for studying abroad. There is a concern about whether a person taking a loan and going abroad will be traceable tomorrow.Or a person who has taken a loan without any guarantee and goes away.
Currently, some home loan schemes have insurance cover. The premium for such cover can be as much as Rs 25,000 a year for a Rs 15 lakh loan, bankers said.
