(a) whether the Government has any proposal to waive off the education loans sanctioned
to the students who could not get a job after completing their education;
(b) if so, the details thereof and if not, the reasons therefor;
(c) whether the Government proposes to relax the rules for the students seeking education
loans to study abroad; and
(d) if so, the details thereof?
(MINISTER OF STATE IN THE MINISTRY OF FINANCE) (SHRI NAMO NARAIN MEENA)
(a) and (b): No Madam. There is no proposal, at present under consideration to waive off
the education loans sanctioned to the students who could not get a job after completing
their studies. The Government had in the Budget, 2012-13 announced setting up of a Credit
Guarantee Fund for Education Loans to ensure better flow of credit to deserving students.
(c) and (d): Education loans are extended as per Model Educational Loan Scheme of Indian
Banks’ Association (IBA) as adopted by the Banks. Under the Scheme, education loans can
be given upto a ceiling of Rs.10 lakh in India and Rs.20 lakh abroad. Banks may consider
higher quantum of loans on course to course basis. The Scheme is modified from time to
time keeping in view the needs of the students. In the last such revision in September
2012, degree/diploma courses like aeronautical, pilot training, shipping etc, were added
in the Model Scheme for studies abroad provided these are recognized by competent
regulatory bodies in India/abroad for the purpose of employment in India/abroad.