Lokpal displeased over high interest on education loans

Our Correspondent

Kangra, October 13

Lokpal JR Negi today expressed displeasure over 13 to 14 per cent interest charged on the loans for studying at universities abroad. He said the matter would be taken up with the appropriate authorities of the Reserve Bank of India.

Negi was answering the queries of customers of different banks at Icchhi in the town’s outskirts today.

A customer had asked Negi that when the interest rate of 9.5 per cent was fixed for luxury car loans, why it was 13 to 14 per cent for education loan.

The customer said education should be a priority for the government and interest rate for education loans should be slashed down.

The Lokpal was also apprised of hefty amount charged by banks for a ‘Solvency Certificate’ for students studying outside the country. Negi decried this banking procedure, too.

He said for creating awareness among banks’ customers, an awareness campaign would soon launched even at the village level.

He said functioning of the banks needed to be corrected and customer feedback was an important element in achieving it.

He said he was surprised at the fact that there was no complaint from 373 bank branches in the district, so decided to directly interact with people in the district.