COIMBATORE: The Valparai MLA M Arumugam has urged the Central government to advise nationalised banks to write-off loans if students who avail education loan do not get gainful employment.
In a letter to Prime Minister Narendra Modi and Union Finance Minister Arun Jaitley, member of the Tamil Nadu Legislative Assembly from Valparai constituency, M Arumugam, said, “Students from poor and middle-class background, pursuing higher studies like polytechnic, medical, engineering, post-graduate and doctoral courses, obtain educational loans from nationalised banks. On completion of studies, they are not able to get employment.”
If students don’t get employed and do not have a permanent income, they are unable to repay the education loans, he added.
In support of his demand, Arumugam also said, “In India, big business houses and corporates obtained several crores in loans for industrial development.
They are also getting a lot of tax benefits from the Government of India, that too, to the tune of Rs 6 lakh crores every year. Then, they are unable to repay the loans. These loans are siphoned of as non-performing assets.”
On the contrary, nationalised banks fleece the poor and middle-class students for not paying loans due to non-employment and no permanent income, he added.
Hence, Arumugam sought the intervention of the Prime Minister and the Union Finance Minister, to advise nationalised banks to write off the education loans of students who do not end up in any jobs.
Students availing educational loan had to repay the loan after the completion of course period and moratorium period. The repayment commences one year after the course completion or six months after securing a job, whichever is earlier.