Denial of education loan repayment support: Convene meeting of bank authorities, Chennithala to govt

Ramesh Chennithala

Photo: mathrubhumi library.

Thiruvananthapuram: Opposition leader Ramesh Chennithala on Thursday submitted a letter to chief minister Pinarayi Vijayan urging him to take initiative to resolve the issue of denial of financial aid announced by government to students who have taken education loan from erstwhile SBT.

In the letter, Chennithala asked the CM to convene a meeting of SBI bank authorities urgently to solve the issue.

Chennithala said that the present crisis happened not because of any lapse on the part of students.

“The crisis happened due to the merger of SBT with SBI. Before the merger, the SBT had entrusted the recovery of its pending education loans to Reliance Reliance Asset Reconstruction Company. After the merger, the documents related to the education loans are not available. The SBI, on the other hand, is not addressing the issue. The Reliance authorities are not providing the documents also. The students are not able to avail the benefits of government’s Education Loan Repayment Support Scheme due to the unavailability of the documents. The last of date to submit the application is December 31. As per the scheme, the government will provide 60 percent of the loan amount if the students deposit 40 percent. Around 20000 students are facing a crisis now. Hence, the government should intervene urgently to solve the issue,” Chennithala said.

Mathrubhumi had reported about the crisis faced by around 20000 students who took education loans after the State Bank of Travancore entrusted the recovery of its pending education loans to Reliance Asset Reconstruction company.


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