“If I were in charge, I would have given the order to crack the whip.”

According to P Chidambaram, a former finance minister, banks must expand their lending to students since student loans represent investments in India’s future.

The Indian Express reported on Thursday that banks have begun to report an increase in defaults, which has caused a halt in the disbursement of education loans, and that the government has requested banks to expand lending to the education sector.

“Government officials are alleged to have ordered public sector banks to speed up the distribution of student loans. As a result of the government’s eight years of negligence, banks developed the practice of refusing credit requests. “According to Chidamabaram’s tweets, banks are reportedly hesitating due to mounting NPAs on student loan debt.

This is a “speculoos argument,” he declared. “Only 7.82% (Rs 6246 crore) of the total loans are non-performing assets,” he tweeted. This is insignificant in light of the Rs 5,24,000 crore the banks sacrificed across 517 instances during the IBC process. For corporates, the forgiven loans are known as a “haircut.” For pupils, it is referred to as “default,” Chidambaram said.

“If I were in charge, I would have given the order to crack the whip. According to the previous finance minister, student loans are an investment in the younger generation’s future.

FAQ:-

1- What did Chaidambaran say about the study loan?

Ans – He said a student loan is an investment in the younger generation’s future.

2- Why are banks hesitating to give study loans?

Ans – due to the NPA’s student loan debt.

3- Who is eligible for a student loan?

Ans-  With the parents or guardians as co-applicants, any student is eligible to apply for an education loan. One year after you finish your study, or within six months of finding employment after your course, whichever comes first, you must begin making payments on your student loan.