The amount of education loan sanctioned and number of beneficiaries during the last three years are given as under:
| 2013-14 | 2014-15 | 2015-16 | |||
| Amount in Crore | Number of Accounts | Amount in Crore | Number of Accounts | Amount inCrore | Number of Accounts |
| 133984 | 766314 | 14693 | 668889 | 15729 | 598187 |
Source: Indian Banks’ Association (IBA)
As per the information provided by the Reserve Bank of India, the percentage of Non-Performing Assets (NPA) of Public Sector Banks, on account of education loans,as on 31.03.2016 was 6.94%.
State Bank of India (SBI) has informed that the new recruits on joining the Bank will deal with public money and eventually when they grow up in the organisation, will sanction loans and recover NPAs. If they themselves have defaulted in loan repayment, it may come in their way of discharging their role effectively and particularly in dealing with loan defaulters.
The stipulation regarding ineligibility of defaulters is in respect of all types of loans and not only for education loan. However, this matter is sub-judice.
IBA Model Scheme has been revised in 2015 wherein Repayment Holiday / Moratorium has been kept as Course period + 1 year.
Banks may also provide additional periods of moratorium taking into account spells of under-employment/unemployment, say two or three times (maximum of 6 months at a time) during the life cycle of the loan.
Repayment period has been extended to 15 years in all cases to reduce Equated Monthly Instalment (EMI) payable. Government of India has launched a Credit Guarantee Fund Scheme for Education Loans (CGFEL) for loans uptoRs 7.50 Lakh.
The fund provides guarantee to the extent of 75% of the defaulted amount. Further, considering the social role which education loan fulfils, banks have been advised to adopt non-coercive strategy as regard recovery of education loans is concerned.
