New Delhi: The Centre on Monday ruled out the possibility of waiver of student education loans as the outstanding touched Rs 75,000 crore in September this year.
Finance Minister Nirmala Sitharaman also refuted suggestions that incidents of suicide among students was because of the pressure from banks to recover the loans.
“…there is no proposal under consideration for waiver of education loans,” the Minister said in Parliament on Monday.
The FM shared banks data which showed that the outstanding loan amount had risen in the last three years from Rs 67,685.59 crore to Rs 75,450.68 crore as of September 2019. She said that 90 per cent of the accounts are ‘standard’ as of March 31, 2019.
Sitharaman said banks have been sensitised to adopt a non-coercive strategy for the recovery of education loans.