Yet another populist measure from the LDF government in Kerala! The government has decided to pay the overdue education loans taken by those below poverty line entailing a total outflow of ₹900 crores from the exchequer! I fail to understand the logic behind this decision. The loans are offered to students to undertake professional studies, which ate to be repaid after they complete the studies and get employed. Without finding out the reason for non payment of these loans and by offering a general relief to all defaulters, the government is in a way supporting the loan defaulters which is detrimental to the interests of the banks! This will only increase the culture of loan defaults, i am afraid. As a retired bank officer i can vouch that in many such cases of defaults the beneficiaries have found a gainful employment and deliberately default on the repayment. Even in case of a person not landing a job, i believe it to be because of the irresponsibility of the student in not completing the course on time or successfully to land a gainful employment. Splurging public money on such persons will be a crime, I feel.
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