Bridging the Gaps

Timely release of loan will enable students to plan their date of travel and join the course of study on time. The cost of yearly travel home from the host country can be included in the loan. When credit guarantee is expanded/extended to cover loans up to at least Rs 10 lakhs (for studies in India as well as abroad), it will send out a strong signal for banks to step up lending to eligible students (especially when education loans up to Rs 10 lakhs and Rs 20 lakhs for studies abroad are eligible to be covered under banks’ priority-sector lending under the extant RBI guidelines).