Lok Sabha Debates
Need To Provide Hassle Free Education Loan To Students. on 21 March, 2012
> Title: Need to provide hassle free education loan to students.
SHRI S.S. RAMASUBBU (TIRUNELVELI): A rare opportunity is given in ‘Zero Hour’. Why should you not allow us one or two minutes? We are waiting here to raise matters in the ‘Zero Hour’. Why should you not allot some more time?
MR. CHAIRMAN: No, he has already said what he wanted.
SHRI S.S. RAMASUBBU : Human resource development is essential for the development of this nation. In order to develop the human resources, education is very important. Our Government is giving more thrust to education and it allocates huge amount of money and takes effective steps to eradicate illiteracy and to provide standard education. However, due to huge cost of education, students are facing lot of difficulties in paying their fees, particularly in higher education and are opting for educational loan.
The Union Government is taking all out efforts in getting education loan to the students at affordable rate of interests and it can be repaid after completing their education/ getting employment.
In spite of directions from the Government to simplify the procedures for extending of hassle free education loan, lot of complaints are arising regarding denial of loans to students by the banks because of cumbersome procedures and various other reasons with malafide intentions.
In a recent case, Sir, in my Constituency, a student of higher education is denied loan by ICICI Bank of Sundra Pandya Puram area just because of this reason quoting that he has secured only 55% marks in HSC, which is less than 60% qualifying marks.
It is difficult to comprehend that once students are considered admission on the basis of the qualifying marks secured by them but the same students are rejected by the banks for education loan citing that the marks secured by them are less. Banks are fixing their own norms contrary to the interests of the students, with the result, the education of students, particularly the students from rural background and poor families, are greatly affected.
I shall, therefore, urge upon the Union Government to issue necessary directions to the bank authorities to ease the norms for providing education loan and ensure that the students should not put into much hardship.