Banks May Ease Loan Repayment Pressures on Indian Students Back from Ukraine


Samarpita Goswami
Updated on Mar 29, 2022 05:59 PM IST

The banks may take action to ease the loan repayment burden of the Indian students who have returned from Ukraine.

Banks May Ease Loan Repayment Pressures on Indian Students Back from Ukraine

The non-bank lenders focusing on education quoted that banks may possibly take measures to ease the burden of loan repayments on students who had taken education loans to study in Ukraine. The steps include EMI holidays, loan restructuring and extension of tenure. The loan value may be reduced from 65%-70% to 50%.

The dialogue has been raised owing to the return of thousands of students from Ukraine and the uncertain future that they have in front of them. The lenders are prepared to provide relief measures on a case-to-case basis.

Also Read:98% Boost in Study Abroad Loan Applications in 2022

As per the standardised format of the Indian Banks Association, collaterals are not required for education loans up to INR 4 lakhs. Education loans up to INR 7.5 lakhs require collateral in the form of a trustworthy third-party guarantee. Loans above INR 7.5 lakhs require physical collateral and co-obligation of parents. Banks can allow extending the time of completion of the course by two years.

In the higher education and study abroad sector, there are some guidelines and regulations of the IBA for the moratorium, collaterals, etc, under which loans are given. Banks are conjointly working with the regulators to provide some relief to the students by extending the moratorium period and refinancing.

Also Read:India Overtakes China to Become No. 1 Country of Origin for Int'l Students in Victoria

According to the data of the Reserve Bank of India, Banks in India have an outstanding education loan of INR 63,057 crores in January 2022. 11% of the loans have been taken to pursue a medical degree as per statistics presented in the Lok Sabha in 2020. The data also revealed that 9.5% of all education loans have been declared non-performing. The bad loans in education have made banks cautious to grant loans to students.

Source: Live Mint

Get Immediate Guidance to Get Into Your Dream University Abroad!

You can share this post!

Admission Open 2024

Related Articles

Aug 18, 2023 04:28 PM IST

How to Apply for Masters in USA?

Aug 03, 2023 01:18 PM IST

Documents Required for TOEFL

Our Study Abroad Offerings

Popular Universities to StudyAbroad

Planning to study abroad?

Interested in Studying Overseas?

Connect with us and kickstart your learning journey for a rewarding experience!

By proceeding ahead you expressly agree to the CollegeDekhoAbroad Terms of Use & Privacy Policy.