Gujarat: Loan Disbursements Down 30% Due to Declining Utilization | Ahmedabad News
According to the latest report of the State-level Bankers Committee (SLBC), education loan disbursements in 2020-2021 decreased by 30% from Rs 1,170 crore in 2019-20 to 824 crore of Rs in 2020-21. The 169th meeting of the SLBC was held in Ahmedabad last week, during which the report was released.
MM Bansal, host of SLBC-Gujarat, said: “Most of the first quarter of 2020-2021 was spent under lockdown and the situation was the same in most countries. Universities had not given enough clarity on admissions and as a result acceptance was very low. At least 70% of student loan disbursements go to students going abroad. With fewer students, overall adoption has dropped dramatically.
In the priority sector annual credit plan for 2020-21, the targeted education loan disbursement was Rs.1982 crore. This means that barely 41.5% of the target has been disbursed.
Even in terms of the number of accounts, only 26,308 accounts received education loans, which corresponds to 45.7% of the 57,491 accounts targeted in the annual priority sector credit plan.
Education has been put online at most universities around the world due to the pandemic. Most of the foreign education aspirants have therefore been forced to take online training while in India. This, according to foreign education consultants, is one of the main reasons for the decline in usage.
“Last year a number of students opted for deferred admissions because universities abroad offered the option of either delaying their admission for a few semesters or taking courses online. The number of students going abroad to study has decreased because of this, ”said Hitesh Devaliya, director of Endeavor Careers.
“Changing the Covid-19 protocols of foreign countries adds more requirements such as a 14-day quarantine, mandatory vaccination and even health insurance for students.
All of these factors add to the costs of studying abroad and act as a deterrent to students. This in turn may have affected the use of education loans, ”he added.