We do live in a connected world! Here are some excerpts from the Rupee Times (which sound eerily familiar to private loan issues here in the U.S.):
- "In fact a manager at an Indian Overseas Bank (IOB) branch in Chennai also attributed the fall in banks' education loan portfolio to the increasing defaults in the segment. He informed that nearly 25% of the NPAs (non-performing assets) of his branch are educational loans. "There is going to be a sub-prime even in educational loans," he added."
- "Besides banks are also following more stringent guidelines on loans demanded by students seeking admission to institutions that score low on name recognition and placement salary, students say. "We ascertain if the student in question is capable of finishing the course and getting employed. Only then do we disburse the loan," says a senior manager from IOB."
- "Although government has been commanding public sector banks to enhance lending but there is no effect that can be noticed among these banks which are reducing their loan disbursement."