Banks told to advance higher for studies abroad

New Delhi, Aug 11: Banks have been advised to advance 40 per cent of Net Bank Credit to the priority sector which consists of education loans to individuals upto the ceiling of Rs 7.5 lakh for studies in India and Rs 15 lakh for studies abroad, the Lok Sabha was told today.

Minister of State for Finance Pawan Kumar Bansal told the Lok Sabha in a written answer that the banks have discretion to sanction higher amounts for studies in India and abroad based on commercial judgement and as approved by their respective boards. They also have the discretion to support meritorious and deserving students without security and delegate such powers to a fairly higher authority .

The Indian Banks Association has advised the banks to give adequate publicity to the Education Loans Scheme, the Minister said.

UNI