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Wednesday, Mar 01, 2006


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Educational loans

The article `Lessons from educational loans' (Business Line, February 23) is timely and thought provoking. The non-repayment of loan by the well-off beneficiaries is a real problem

One of the main reasons for this is the loss of contact with the beneficiaries due to the lengthy loan period — seven years. By the time the repayment starts, there is a change of guard in the branch and the new branch head may not know about the whereabouts of the loanees. Though the beneficiaries are expected to produce every year the copy of mark list and to inform the bank of the date of completion of course, this is seldom done.

One way to ensure recovery of educational loans is sensitise both beneficiaries and parents.

V. Nadanasabapathy

Chennai

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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