EDUCATION LOANS-A HOGWASH
Planning to go abroad for higher studies? Need INR 20 Lakhs to fund your education? I am sure you are amongst those thousands of students who approach banks for a loan. Banks are definitely very helpful. But they help only if you have 22 lakhs!!-yes you read it right!!!
Did you know that banks need a collateral security to back up the loan? This security can be in the form of property, bonds, deposits, insurance policies (surrender value should be equal to the value of the loan applied for) etc. So that essentially means you need to have that 20-lakhs (or more as some banks insist on collateral which is worth 120% of the loan amount) if you wish to get a loan!!!! Agreed that banks want to protect themeselves from any default in repayment-But how does this fancy education loan really help the needy-someone who does not have property or any other financial support?
So this essentially boils down to: ONLY THOSE WHO HAVE MONEY IN SOME FORM CAN GET A LOAN AND STUDY FURTHER. So the underserved continue to be deprived of funds to finance their education. Is this totally inclusive social development??
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