Loan lessons

Reserve Bank of India (RBI) Deputy Governor K C Chakrabarty retains his maverick streak. At the finance leadership summit of the Indian Institute Management, Lucknow (IIM-L), someone in the audience asked why car loans were cheaper than education loans in India. The veteran banker’s reply: “When a bank gives car loans, it knows that the borrower has a good job to repay. In education loans, the repayment capacity is not clear beforehand.”