Lok Sabha Question No. 264 (STARRED), answered on 2021-03-15
Subject: Education Loans
Ministry: FINANCE
Asked by: Karti P. Chidambaram

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENTOF FINANCIAL SERVICES

## TO BE ANSWERED ON THE 15 th MARCH, 2021, PHALGUNA 24, 1942 (SAKA)

## LOK SABHA STARREDQUESTION NO. *264 EDUCATIONLOANS

## *264. KARTI P.CHIDAMBARAM:

## Will the Minister of FINANCE be pleased to state:

- (a) the number and amount of outstanding education loans and Non-Performing Assets (NPAs)in education loans in the country, State-wise and stream-wise;
- (b) the total amount of education loans and NPAs vis-a-vis other types of loans and NPAs;
- (c) whether there has been a sharp increase in the education NPAs during the last few years;
- (d) if so; details thereof and the reasons therefor;
- (e) the reasons for rising education NPAsand far greater NPAsin some streams;
- (f) whether any private entities are involved in the process of loan collection and if so, details thereof;
- (g) whether the Government has received any complaints of excess pressure or strong-arming against education loan collectors;
- (h) whether the Government is considering any aid to students struggling to pay loans in the current job situation, particularly waiver of student loans; and
- (i) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## FINANCE MINISTER

(SMT. NIRMALA SITHARAMAN)

(a) to (i): A Statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PART (a) TO (i) OF LOK SABHA STARRED QUESTION NUMBER *264 FOR 15 th MARCH, 2021 REGARDING EDUCATIONLOANs BY SHRI KARTI P.CHIDAMBARAM

(a)& (b): The State-wise details of number and amount of outstanding loans and Non-Performing Assets (NPAs) in respect of education loans are placed as Annexure-I. Details of Streamwise number and amount of outstanding loans and NPAs as on 31-12-2020 towards education loans are at Annexure-II. As per RBI details of NPAs under Education Loans scheme vis-à-vis other types of loans are given in Annexure-III.

(c ), (d) & (e): Statement showing stream-wise position of NPAs during the last three financial years (2017-18 to 2019-20) is placed at Annexure-IV. The NPA level in respect of Education Loans has come down from 8.11% as on 31.03.2018 to 7.61% as on 31.03.2020.

(f) &(g): Some Public Sector Banks have on occasions engaged private entities for effecting recovery. The recovery process for NPA accounts is regulated as per RBI guidelines dated 24-04-2008, through which the RBI advised banks, inter-alia, to ensure that the contracts with the recovery agents do not induce adoption of uncivilized, unlawful and questionable behaviour or recovery process. Further, the guidelines provide that the Banks, as principals, shall be held responsible for the actions of their agents. Hence, they are to ensure that agents are properly trained to handle their responsibilities with care and sensitivity for recovery of dues. Government has also sensitized the Public Sector Banks to adopt a non-coercive strategy for recovery of education loans. Grievances received in this regard are dealt with as per extant procedures for resolution.

(h) & (i): In order to help the borrowers to tide over difficulties in the wake of Covid 19 pandemic, RBI allowed moratorium of six months on payment of all instalments falling due between March 1, 2020 and August 31, 2020 without an asset classification downgrade to borrowers which include Education Loans also. Further, RBI, vide circular dated 6 August, 2020, provided a framework for resolution of stressed assets to enable the lenders to implement a resolution plan in respect of personal loans, including education loans, covering grant of moratorium of up to two years while classifying them as standard subject to certain conditions. Further, the Government provided ex-gratia relief by way of payment of difference between compound interest and simple interest, on the outstanding as on 29.2.2020, of eligible borrowers in the specified loan accounts, including education loans, for the period of six

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## Annexure-I to reply to Lok Sabha Starred Question No. 264 for answer on 15.03.2021

| State-wise number and amount of outstanding education loans and Non-performing Assets (NPAs) as on 31.12.2020   | State-wise number and amount of outstanding education loans and Non-performing Assets (NPAs) as on 31.12.2020   | State-wise number and amount of outstanding education loans and Non-performing Assets (NPAs) as on 31.12.2020   | State-wise number and amount of outstanding education loans and Non-performing Assets (NPAs) as on 31.12.2020   | State-wise number and amount of outstanding education loans and Non-performing Assets (NPAs) as on 31.12.2020   | State-wise number and amount of outstanding education loans and Non-performing Assets (NPAs) as on 31.12.2020   |
|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
|                                                                                                                 | Loan Outstanding                                                                                                | Loan Outstanding                                                                                                | NPA                                                                                                             | NPA                                                                                                             | Amount Rs in Crore Percentage of NPA                                                                            |
|                                                                                                                 | A/cs                                                                                                            | Amount                                                                                                          | A/Cs                                                                                                            | Amount                                                                                                          |                                                                                                                 |
| NORTH EASTERN REGION                                                                                            |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |
| Assam                                                                                                           | 12840                                                                                                           | 461.80                                                                                                          | 1151                                                                                                            | 30.60                                                                                                           | 6.63                                                                                                            |
| Meghalaya                                                                                                       | 3504                                                                                                            | 132.73                                                                                                          | 174                                                                                                             | 5.03                                                                                                            | 3.79                                                                                                            |
| Mizoram                                                                                                         | 324                                                                                                             | 12.64                                                                                                           | 43                                                                                                              | 1.59                                                                                                            | 12.56                                                                                                           |
| Arunachal Pradesh                                                                                               | 407                                                                                                             | 37.88                                                                                                           | 46                                                                                                              | 1.67                                                                                                            | 4.42                                                                                                            |
| Nagaland                                                                                                        | 350                                                                                                             | 13.73                                                                                                           | 27                                                                                                              | 0.77                                                                                                            | 5.59                                                                                                            |
| Manipur                                                                                                         | 832                                                                                                             | 36.20                                                                                                           | 87                                                                                                              | 3.19                                                                                                            | 8.80                                                                                                            |
| Tripura                                                                                                         | 4123                                                                                                            | 112.92                                                                                                          | 454                                                                                                             | 11.58                                                                                                           | 10.26                                                                                                           |
| Total                                                                                                           | 22380                                                                                                           | 807.90                                                                                                          | 1982                                                                                                            | 54.42                                                                                                           | 6.74                                                                                                            |
| EASTERN REGION                                                                                                  |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |
| Bihar                                                                                                           | 105043                                                                                                          | 3524.88                                                                                                         | 24384                                                                                                           | 908.16                                                                                                          | 25.76                                                                                                           |
| Jharkhand                                                                                                       | 61332                                                                                                           | 2831.17                                                                                                         | 6235                                                                                                            | 232.53                                                                                                          | 8.21                                                                                                            |
| West Bengal                                                                                                     | 63327                                                                                                           | 2505.44                                                                                                         | 5506                                                                                                            | 159.30                                                                                                          | 6.36                                                                                                            |
| Odisha                                                                                                          | 51943                                                                                                           | 1732.59                                                                                                         | 5341                                                                                                            | 210.29                                                                                                          | 12.14                                                                                                           |
| Sikkim                                                                                                          | 713                                                                                                             | 19.56                                                                                                           | 18                                                                                                              | 0.42                                                                                                            | 2.15                                                                                                            |
| Andaman& Nicobar                                                                                                | 485                                                                                                             | 23.68                                                                                                           | 20                                                                                                              | 0.53                                                                                                            | 2.24                                                                                                            |
| Total                                                                                                           | 282843                                                                                                          | 10637.32                                                                                                        | 41504                                                                                                           | 1511.23                                                                                                         | 14.21                                                                                                           |
| CENTRAL REGION                                                                                                  |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |
| Uttar Pradesh                                                                                                   | 119171                                                                                                          | 4319.08                                                                                                         | 11186                                                                                                           | 287.42                                                                                                          | 6.65                                                                                                            |
| Uttarakhand                                                                                                     | 20982                                                                                                           | 851.79                                                                                                          | 1209                                                                                                            | 32.60                                                                                                           | 3.83                                                                                                            |
| Madhya Pradesh                                                                                                  | 86987                                                                                                           | 2937.96                                                                                                         | 8639                                                                                                            | 186.00                                                                                                          | 6.33                                                                                                            |
| Chattisgarh                                                                                                     | 19574                                                                                                           | 720.00                                                                                                          | 1514                                                                                                            | 35.37                                                                                                           | 4.91                                                                                                            |
| Total                                                                                                           | 246714                                                                                                          | 8828.83                                                                                                         | 22548                                                                                                           | 541.39                                                                                                          | 6.13                                                                                                            |
| NORTHERN REGION                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |
| Delhi                                                                                                           | 35361                                                                                                           | 2191.02                                                                                                         | 1451                                                                                                            | 43.64                                                                                                           | 1.99                                                                                                            |
| Punjab                                                                                                          | 29934                                                                                                           | 1748.48                                                                                                         | 1849                                                                                                            | 52.63                                                                                                           | 3.01                                                                                                            |
| Haryana                                                                                                         | 33517                                                                                                           | 1644.69                                                                                                         | 3654                                                                                                            | 100.84                                                                                                          | 6.13                                                                                                            |
| Chandigarh                                                                                                      | 4232                                                                                                            | 281.65                                                                                                          | 154                                                                                                             | 4.05                                                                                                            | 1.44                                                                                                            |
| Jammu &Kashmir                                                                                                  | 14323                                                                                                           | 518.36                                                                                                          | 501                                                                                                             | 11.94                                                                                                           | 2.30                                                                                                            |
| Ladakh                                                                                                          | 40                                                                                                              | 1.17                                                                                                            | 0                                                                                                               | 0.00                                                                                                            | 0.00                                                                                                            |
| Himachal Pradesh                                                                                                | 16201                                                                                                           | 505.92                                                                                                          | 884                                                                                                             | 26.70                                                                                                           | 5.28                                                                                                            |
| Rajasthan                                                                                                       | 45407                                                                                                           | 2015.72                                                                                                         | 2483                                                                                                            | 61.23                                                                                                           | 3.04                                                                                                            |
| Total                                                                                                           | 179015                                                                                                          | 8907.01                                                                                                         | 10976                                                                                                           | 301.03                                                                                                          | 3.38                                                                                                            |
| WESTERN REGION                                                                                                  |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |
| Gujarat                                                                                                         | 48437                                                                                                           | 3291.33                                                                                                         | 1902                                                                                                            | 47.31                                                                                                           | 1.44                                                                                                            |
| Maharashtra                                                                                                     | 224276                                                                                                          | 9534.49                                                                                                         | 22276                                                                                                           | 448.00                                                                                                          | 4.70                                                                                                            |
| Dadar Nagar Haveli &Daman &Diu                                                                                  | 465                                                                                                             | 19.28                                                                                                           | 11                                                                                                              | 0.22                                                                                                            | 1.14                                                                                                            |
| Goa                                                                                                             | 7593                                                                                                            | 388.93                                                                                                          | 392                                                                                                             | 16.96                                                                                                           | 4.36                                                                                                            |
| Total                                                                                                           | 280771                                                                                                          | 13234.03                                                                                                        | 24581                                                                                                           | 512.49                                                                                                          | 3.87                                                                                                            |
| SOUTHERN REGION                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |                                                                                                                 |
| Andhra Pradesh                                                                                                  | 111822                                                                                                          | 6741.70                                                                                                         | 5786                                                                                                            | 115.23                                                                                                          | 1.71                                                                                                            |
| Telengana                                                                                                       | 63534                                                                                                           | 4773.93                                                                                                         | 2953                                                                                                            | 75.33                                                                                                           | 1.58                                                                                                            |
| Karnataka                                                                                                       | 256219                                                                                                          | 8040.76                                                                                                         | 28694                                                                                                           | 495.69                                                                                                          | 6.16                                                                                                            |
| Lakshadweep                                                                                                     | 19                                                                                                              | 0.59                                                                                                            | 0                                                                                                               | 0.00                                                                                                            | 0.00                                                                                                            |
| Tamilnadu                                                                                                       | 697066                                                                                                          | 17193.58                                                                                                        | 168410                                                                                                          | 3490.75                                                                                                         | 20.30                                                                                                           |
| Kerala                                                                                                          | 325703                                                                                                          | 10236.12                                                                                                        | 54519                                                                                                           | 1396.23                                                                                                         | 13.64                                                                                                           |
| Puducherry                                                                                                      | 18311                                                                                                           | 481.80                                                                                                          | 4307                                                                                                            | 93.31                                                                                                           | 19.37                                                                                                           |
| Total                                                                                                           | 1472674                                                                                                         | 47468.48                                                                                                        | 264669                                                                                                          | 5666.54                                                                                                         | 11.94                                                                                                           |
| G.Total                                                                                                         | 2484397                                                                                                         | 89883.57                                                                                                        | 366260                                                                                                          | 8587.10                                                                                                         | 9.55                                                                                                            |

Annexure-II to reply to Lok Sabha Starred Question No.264 for answer on 15 th March, 2021

Stream-wise number and amount of outstanding education loans and Non-performing Assets (NPAs) as on 31.12.2020

| Stream             | Loan Outstanding   | Loan Outstanding     | NPAs   | NPAs                 | Percentage of NPAs   |
|--------------------|--------------------|----------------------|--------|----------------------|----------------------|
|                    | No.                | Amount (Rs in Crore) | No.    | Amount (Rs in Crore) |                      |
| Medical Profession | 156338             | 10147.05             | 17676  | 633.15               | 6.23                 |
| Engineering        | 1023968            | 33315.64             | 176256 | 4041.68              | 12.13                |
| Nursing Courses    | 123359             | 3674.68              | 22013  | 520.16               | 14.15                |
| MBA                | 216623             | 9541.36              | 28736  | 685.51               | 7.18                 |
| Others             | 813979             | 28286.43             | 107238 | 2383.34              | 8.42                 |

Source: State Level Bankers' Committee

Annexure-III to reply to Lok Sabha Starred Question No. 264 for answer on 15.03.2021

Percentage of NPAs under Education Loans vis-a vis other type of loans

(In percent)

| As on      |   Education |   Housing |   Vehicle Loans |   Consumer Durables |   Other Retail Loans |   Agriculture &Allied |   Industry |
|------------|-------------|-----------|-----------------|---------------------|----------------------|-----------------------|------------|
| 31.03.2018 |        8.11 |      1.56 |            1.96 |                1.99 |                 2.19 |                  7.84 |      21.14 |
| 31.03.2019 |        8.29 |      1.43 |            1.82 |                4.53 |                 2.06 |                  8.96 |      16.66 |
| 31.03.2020 |        7.61 |      1.61 |            1.68 |                6.91 |                 1.52 |                 10.33 |      13.6  |

Source: RBI

Annexure-IV to reply to Lok Sabha Starred Question No. 264 for answer on 15th March, 2015

| Stream-wise percentage of NPAsfor the last three years in respect of Education Loan.   | Stream-wise percentage of NPAsfor the last three years in respect of Education Loan.   | Stream-wise percentage of NPAsfor the last three years in respect of Education Loan.   | Stream-wise percentage of NPAsfor the last three years in respect of Education Loan.   | Stream-wise percentage of NPAsfor the last three years in respect of Education Loan.   | Stream-wise percentage of NPAsfor the last three years in respect of Education Loan.   |
|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| AS on                                                                                  | Medical Profession                                                                     | Engineering                                                                            | Nursing                                                                                | MBA                                                                                    | Other Professions                                                                      |
| 31.03.2018                                                                             | 5.51                                                                                   | 7.73                                                                                   | 12.96                                                                                  | 6.21                                                                                   | 7.26                                                                                   |
| 31.03.2019                                                                             | 10.27                                                                                  | 10.61                                                                                  | 15.76                                                                                  | 8.37                                                                                   | 12.40                                                                                  |
| 31.03.2020                                                                             | 7.60                                                                                   | 13.67                                                                                  | 15.18                                                                                  | 7.43                                                                                   | 11.02                                                                                  |

Source: State Level Bankers' Committee