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Home Education Loans

RBI looking into improving quality of education loans: Rajan

Anupam by Anupam
March 16, 2016
in Education Loans

Bengaluru: Reserve Bank Governor Raghuram Rajan Friday said the central bank was looking into improving the quality of education loans despite high levels of defaults.

Rajan, who delivered the Sri Vithal N Chandavarkar Memorial Lecture at the Indian Institute of Science campus here, responding to a question on education loans, mentioned how a defaulting on a motorcycle can result in its seizure but the same was not possible with education loans.

Rajan while empathising with the students, illustrated the various problems and feedback loops associated with student loans and acknowledged that despite high levels of defaulting, the RBI was looking into improving the quality of education loans.

The RBI governor also spoke of the broad consensus across the establishment for the need for targeted subsidies and how the Aadhaar and direct benefit transfer was way to do that, according to a release by IISc Science. The event was closed door.

The release said talking on parallel economy, Rajan spoke of how a combination of technology and good policy is shrinking space for it, how our changing morality on the perception of evasion is changing for the better, and how cleanliness will eventually spread through the system.

 

[SOURCE :-zeenews]

Tags: educationimprovingintoloanslookingofqualityRajanRBI
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