In the wake of reports citing a 39% fall in banks extending educational loans to students in Tamil Nadu, Pattali Makkal Katchi (PMK) founder S. Ramadoss on Tuesday urged the Central and State governments to ensure that banks granted educational loans to students who have recently passed their Class 12 exams.
In a statement, Mr. Ramadoss cited the Class 12 exam results published on Monday and the expected publishing of the Class 12 exam results for CBSE students in the next few days and contended that most of their higher education depended on educational loans from banks. “It is disappointing to note reports about banks hesitating to extend educational loans citing the economic slowdown due to COVID-19. Though it is true that the average income of parents have come down, it is not just to deny the educational opportunities of the children,” Mr. Ramadoss contended.
Tamil Nadu stood first among big States in terms of the number of educational institutions and also in the enrolment of students in higher education and granting of educational loans by banks was one of the primary reasons behind the trend, Mr. Ramadoss pointed out. About 21.50% or ₹20,200 crore of the total ₹94,000 crore of educational loans granted to students across the country was in Tamil Nadu, he said. When compared to 2019-20, the educational loans granted during 2020-21 were fewer in Tamil Nadu. It was ₹2,420 crore during last fiscal and it fell to ₹1,478 crore this fiscal, which is a drop of 39%, he noted.
“The figures show that about 40% have been denied higher education last year. If this continues, the educational loans would fall further this year. More students would not be able to obtain loans and thereby lose their higher education. This would affect them,” Mr. Ramadoss contended.
The decline in granting of educational loans was due to pay cuts suffered by parents and many of them being laid off in large numbers, he argued. Even as he acknowledged the challenges faced by banks in granting educational loans, Mr. Ramadoss contended: “Once the impact of Coronavirus subsides and when normalcy resumes, all will be well. Educational loans would be repaid.”
