For students who failed to enter the institutions of higher education is famous for poor results, it turns out this has also to obtain bank loans Because it could complicate the student to get a loan. While today there have been concerns over a sharp rise in defaults that occur from student loans in the past year. And Indian banks now want class educational institutions based on track record of efficiency in the payment of their students. So that the institution has students with poor payment record, then he will get a low value and the students they will be difficult to get student loans. In addition, the students they may also be necessary to produce collateral to obtain loans. Seeing this, how if it happens to you? Then, why could it happen? Basically, this step is triggered by an increase of almost 45% of bad loans in fiscal 2011 to about
1,600 crore . Whereas for the number of outstanding student loans, has climbed to 43,000 crores `given to 2.2 million students in March; about 4% of the loan is bad.
And currently, there is no assessment of the educational institutions by banks to assess the default risk of a particular college or institution. Thus, although the rating agency Crisil Ltd., Credit Analysis and Research Ltd. (CARE) and ICRA Ltd has initiated various programs to offer a rating by the institution’s management, they do not go to the class institute. So it makes sense that the banks can determine that the student (availing loans) that either could go to college. Although quality assessment can only be decided by outside agencies.
Then for the development came shortly after the banks started norms re-education loans for bad credit control in the sector. IBA has formed a committee of experts under the leadership of Bank of India and Managing Director of TM Bhasin to modify the educational loan scheme was first launched in 2001-02 as a finance minister Yashwant Sinha. This scheme was later modified in 2004-05 when P. Chidambaram became finance minister. Then, how the IBA can be formed?
IBA was formed after complaints from several banks that they are often forced to give loans to students under pressure from politicians and influence in rural and semi-urban areas. So the rule now states that the bank can not find any security for loans up to `4 lakh. Between `4` lakh and 7.5 lakh, they can request only the personal guarantees and collateral for the loans above.?