Banks said granting loans to IITs is a priority. “IITs are top institutions and, hence, loans for students taking admissions is a priority for us. With the hike in fees, the size of loans will also increase, subject to norms. It will grow our business,” said Salil Kant Saran, chief general manager (personal banking) at State Bank of India (SBI).
SBI, the country’s largest lender, had a portfolio of educational loans worth Rs 13,491 crore at the end of September 2012.
Another public sector executive heading retail banking said, “We never refuse a loan to anybody who gets admission into IITs and IIMs. In fact, there is intense competition among banks and they (students) are hotly pursued. The risk of repayment defaults are negligible, as students have excellent job prospects.”
