The finance ministry is talking to banks to set up a credit guarantee trust for education loans up to Rs 7.5 lakh, a senior ministry official said. The proposal aims to ensure loans are available to students at a time when employment outlook looks bleak and even top B-schools are bracing themselves for fewer jobs and lower salaries. Over 2.2 million students have education loans worth Rs 43,074 crore outstanding with public sector banks. About 5% to 6% of them default , according to industry estimates. Fees at top B-schools range from Rs 7.75 lakh to Rs 21 lakh. Directors at IIMs and ISB say 80%-95 % of students avail loans.
Source: Economic Times
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