Reserve Bank Governor Raghuram Rajan today said the central bank was looking into improving the quality of education loans despite high levels of defaults.
Rajan, who delivered the Sri Vithal N Chandavarkar Memorial Lecture at the Indian Institute of Science campus here, responding to a question on education loans, mentioned how a defaulting on a motorcycle can result in its seizure but the same was not possible with education loans.
Rajan while empathising with the students, illustrated the various problems and feedback loops associated with student loans and acknowledged that despite high levels of defaulting, the RBI was looking into improving the quality of education loans.
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