Lok Sabha Question No. 4126 (UNSTARRED), answered on 2016-12-09
Subject: NPAs of Educational Loan
Ministry: FINANCE
Asked by: M. CHANDRAKASI

## GOVERNMENT OF INDIA

## UNSTARRED QUESTION NO. 4126 TO BE ANSWERED ON THE 9TH DECEMBER, 2016, AGRAHAYANA 18, 1938 (SAKA) NPAs OF EDUCATIONAL LOAN

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA

## 4126. SHRI M. CHANDRAKASI:

Will the Minister of FINANCE be pleased to state:

- debarred candidates who failed to repay their education b) whether some banks have loan from appearing in the banking services selection tests; if so, details thereof; and
- the amount of education loan sanctioned and number of beneficiaries during each of a) three and the percentage of Non-Performing Assets (NPAs) of education loan the last sector as on date; years
- the steps being taken by the Government to mitigate the hardships of hapless, educatede and unemployed youth who are unable to repay their loans and coercive measures of banks who employ collection agents to collect their dues?

## ANSWER (MINISTER OF STATE IN THE MINISTRY OF FINANCE) (SHRI SANTOSH KUMAR GANGWAR)

- The amount of education loan sanctioned and number of beneficiaries during the last (a) three years are given as under:

| 2013-14         | 2013-14            | 2014-15         | 2014-15         | 2015-46         | 2015-46         | 2015-46   |
|-----------------|--------------------|-----------------|-----------------|-----------------|-----------------|-----------|
| Amount in Crore | Number of Accounts | Amount in Crore | Number Accounts | Amount in Crore | Number Accounts | of        |
| Amount in Crore |                    | 14693           | 668889          | 15729           | 598187          |           |
| 133984          | 766314             |                 |                 |                 |                 |           |

As per the information provided by the Reserve Bank of India; the percentage of Noo Assets (NPA) of Public Sector Banks, on account of education loans, as on Performing 31.03.2016 was 6.94%.

Source: Indian Banks Association (IBA)

- State Bank of India (SBI) has informed that the new recruits on joining the Bank will deal (b) and eventually when grow up in the organisation, will sanction loans with public money themselves have defaulted in loan repayment, it may come in their and recover NPAs: If in dealing with loan defaulters The way of discharging their role effectively and particularly for regarding ineligibility of defaulters is in respect of all types of loans and not only stipulation they they
- (c) IBA Model Scheme has been revised in 2015 wherein Repayment\_ Holiday Moratorium has been kept as Course + 1 year: Banks may also provide additional periods of moratorium taking into account of under-employmentlunemployment; say two or three times (maximum of 6 months at a time)   during the life of the loan. Repayment has been extended to 15 in all cases to reduce Equated Monthly Instalment (EMI) "Government of India has launched a Credit Guarantee Fund Scheme for Education The fund provides guarantee to the extent of Loans defaulted amount: Further, considering the social role which education loan fulils, 75% of the of education banks have been advised to adopt non-coercive strategy as regard recovery loans is concerned: period spells period cycle years