AGENCIES
Posted: Friday, Nov 09, 2012 at 1954 hrs IST
Tags: Reject Education Loan | RBI Education Loan |
Business News
Mumbai: The
Reserve Bank today asked banks not to reject any educational loan application
even if the residence of the borrower does not fall under their service area.
"... banks are advised not to reject any educational
loan application for reasons that the residence of the borrower does not fall
under the bank's service area," RBI said in a notification today.
RBI has further asked the banks to issue suitable
instructions to their branches or controlling offices for meticulous and strict
compliance in this regard.
The apex bank issued the notification in view of number
of complaints where students were refused educational loan as the residence of
the student does not fall under the bank's service area.
It also said that the service area norms should be
followed only in the cases of government sponsored schemes.
In the financial year ended March 31, 2012, banks' gross
credit towards education loan was at Rs 502 billion fromRs 437 billion in the
previous fiscal, as per the RBI data.
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