BANGALORE: Getting an education loan for management and engineering seats under management quota might not be an easy process henceforth.
The Indian Banks Association (IBA) has excluded management quota from its revised model for educational loan schemes with effect from nex t financial year.
“In certain cases, employment potential is not justified with the fe structure for management seats.
Hence, any loan considered by banks for students taking admission under management quota would be outside the model scheme.
Banks may fix appropriate terms and conditions for such loans,” said an IBA guidance note.
The IBA has asked banks to consider the employment potential before granting loans to students.
“The assessment of the loan will be based on employability and earning potential of the student upon completion of the course,” an IBA circular said.
Merit (ranks secured in entrance tests and merit-based selection) is now the sole criteria for educational loans.
Educationists are critical of this decision, as it counters the government’s ongoing attempts to increase g r o s s e n r o l m e n t ratio (GER).
“When banks are giving crores to industries, why not students? There are meritorious students who apply for seats under management quota.
This move will deprive them of an opportunity to get education.
It is a defeat of the fundamental objective of nationalised banks,” said Dr M R Doreswamy, MLC and chairperson of PES Group of Institutions.
Dr M K Panduranga Setty, chairperson of Karnataka Unaided Private Engineering Colleges Association (KUPECA), was scornful of such discrimination.
“Why discriminate between management and government quota? When the government is talking about increasing access to education, this is an undesirable attitude from the banks,” he said.
Principal secretary for Higher Education H Siddaiah, said, “If loans are available to students under government quota, why not give loans to management quota?” he said.