EducationFinance

Nurses, Engineers, MBA Grads Biggest Contributors to Bad Debt in Education Loans

You would be shocked to know that Nurses, Engineers, and MBA graduates are among the top contributors to bad debt or non-performing assets (NPAs). It is as of December 2020. Rs.8,263 crore belonging to 3.5+ accounts availing education loans have not been repaying EMIs.

As per a report by a leading Daily, data has been created from all the state-level bankers’ committees (SLBCs) as of December 2020.

It is out of the 23.3 lakh accounts with an education loan outstanding of Rs.84,965 crore.

Let’s know more in this post!

Who tops the list of NPAs in education loans?

In NPAs against the loan’s outstanding amount, Nursing sits at the top of the list with over 14%. It is followed by 12.1% in Engineering. The figure is 7.1% for MBAs and 6.2% for medical. Other streams form the remaining 8.4% of the remaining NPAs.

What have been the major causes for NPAs in education loan?

Financial experts think that the job and the income loss and drop-out rates during the COVID-19 lockdown are vital factors. They have contributed to surging the NPAs in the study loan category.

Banks have become cautious in disbursing education loans

Ever since the number of NPAs went up in the education loan category, banks have become cautious in the processing and approval of such debts. They don’t want to increase their NPAs, and that’s why they may not approve study loan applications.

What’s next for education loan aspirants?

Since banks have not been approving education loans at a rapid pace, what does it mean? Does it mean you may face rejections even if you are eligible? No. There is a way out if you have a property in a leading city in India.

How to arrange finance during COVID-19 times for study?

Applicants who fear that their education loan applications may be rejected don’t need to bother. It is because they can apply for a hassle-free solution and get a large amount. It is the education loan against property.

The education loan for abroad studies against property is given when you keep your property in a top city as the collateral. You can get an amount as high as up to Rs.1 crore as per your eligibility and lender’s policies.

The education loan schemes against property carry a lower rate of interest. It means you can easily manage to pay lower EMIs and save big.

What are the key features of education loans against property?

  • A considerable loan amount

You have the benefit of accessing a large amount of up to Rs.1.crore to meet your needs. You can also use the loan amount not only for your educational needs but even for anything else. Lenders don’t put any restrictions if you use the funds genuinely.

  • Money in your bank within 4 days

If you are an eligible customer, you can access an approval within hours. Not only this, once you are approved, you can get the loan amount within 4 days. It means you don’t have to wait for ages to get the loan amount in your bank account.

  • Flexible repayment tenor

Once you have availed the education loan against property, you don’t need to bother to repay the loan faster and hurt your wallets. Yes, top lenders let you repay the loan money over a tenor ranging from 2 and 20 years. You can calculate your monthly EMI using an education loan calculator.

  • Online account management

You don’t need to visit your lender to know about the progress of your study loan. It is because you can access details like outstanding amount, EMIs paid and more. It can be done via your lender’s customer portal.

If you face issues in getting the approval for an education loan from a traditional bank, you can always rely on an education loan against property.

Additional Read: 5 Learning Strategies For To Get Better At Academics

 

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