INDIA
SHRINKING JOBS ARE BAD NEWS FOR EDUCATION LOAN
BORROWERS AND BANKS ARE IN A TIGHT SOPT
2019-01-21 10:15
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The shrinking job market is becoming an increasing concern for the country’s millions of students studying at home and abroad with education loans. Also concerned are those unemployed youth who had finished education with the support of bank loans that they are unable to return. The equally concerned are the guardians of the students, offering collateral for such loans. Banks are facing huge loan defaults. Interestingly, most of the education loans come from state-owned banks. The collateral is something pledged as security for repayment of loan, to be forfeited in the event of a default. Banks are increasingly finding it difficult to recover education loans from defaulters, genuine or wilful.