Mumbai: When it happens, it would be a lifeline for engineering students burdened under the education loans during these times of economic recession. Nationalized banks in India have intimated their plan to give recession hit engineering graduates relief in EMI payments.
State Bank of India (SBI), the market leader for education loan, has plans to ensure that students hit by the current financial crisis are not subjected to penalty, if unable to repay their education loan on time. Banks further declared that if they are approached by students caught in a cleft stick paying back their loans, they will reassess the loan on case to case basis.
Speaking on the decision, the official spokesperson of SBI, which has a 24% share in the market for education loan, said that they sympathize with the students’ predicament. In any case, they would not want a student to sell his father’s house because he cannot pay back an education loan. Other banks have also supported this point of view. The sympathetic approach of the banks has come as a great relief towards thousands of youths under the stress of repaying the loan.
