The Department of Financial Services has now made mandatory for banks to sanction education loans only though online process via NSDL portal and asked them not to take any application in physical form.
The decision has been taken to make education loan disbursement process transparent and more efficient.
HERE’S WHAT THE MANAGING DIRECTOR AND CEO, NSDL E-GOVERNANCE INFRASTRUCTURE SAID TO NEW INDIAN EXPRESS:
“Already, lakhs of students are coming to our portal to register for education loans,” Gagan Rai said.
AIM OF THE MOVE:
- The move also aims to tackle the delay in sanctioning of the education loans
- According to Gagan Rai, shifting the entire process online will also check corruption
- It aims to help in scanning fraudulent applications
- The move is significant as it comes in the backdrop of a steep increase in slippages in education loans, putting further pressure on the already stressed banking sector
WHAT DOES THE EDUCATION LOAN MEAN?
- It covers the basic course fee and other related expenses such as (college) accommodation, exam and other miscellaneous charges
- It is offered to students who want to study in India or pursue higher education overseas. The maximum amount offered for studies in India and overseas are different and varies from one bank to another
[“Source-indiatoday”]
