NPA Crisis

Student loans dry up as bad debts climb at banks

An increase in non-performing assets have led several public sector banks to go slow on educational loans, latest data compiled by the Finance Ministry shows.

  1. Banks were given a target of 20 per cent growth in disbursements.
  2. There are lots of NPAs in the education sector and rising in the last few years.
  3. Due to rising bad loans, the finance ministry, at the request of bankers, has created a credit guarantee fund for education loans.
  4. It has also asked banks to integrate with the Vidya Lakshmi portal.
  5. This is a first of its kind portal providing a single window for students to access information and submit applications for educational loans to banks and for government scholarships.

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