A recent news item said that public sector banks are turning cautious about sanctioning fresh education loans as non-performing assets (NPAs) are at a high of 8 per cent. Outstanding education loans stood at around Rs 80,000 crore on June 30, 2022.
Education loans are inherently risky for lenders. The typical borrower takes two-five years to complete the course. She hopes to pay the loan (usually large-sized) along with interest back after completing her course. This is contingent on her ability to get a job that pays a salary which is adequate to allow repayment.
No collateral is required for
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