Currently, education loans up to Rs 7.5 lakh are backed by a credit guarantee fund, which means that banks do not seek any collateral for loans up to the guaranteed amount.
The Centre is likely to raise the guarantee limit for education loans from Rs 7.5 lakh to Rs 10 lakh — a move that comes in the backdrop of a Government-led push for Public Sector Banks (PSBs) to increase disbursements amid complaints of delays in sanction and rejection of loan applications.
Currently, education loans up to Rs 7.5 lakh are backed by a credit guarantee fund, which means that banks do not seek any collateral for loans up to the guaranteed amount.
Content Courtesy:https://indianexpress.com/article/education/education-loan-bid-to-hike-guarantee-cap-to-rs-10-lakh-8205264/
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