SBI offers one-time settlement of study loans

The Local Head Office (Kerala Circle) of State Bank of India has come out with a one-time settlement of student loan dues in the State.

According to a top official, the programme is applicable to loans of up to ₹4 lakh which are NPAs as on the day of settlement and are valid up to April 30, 2016.

Explaining the salient features, he said the entire principal and interest would be waived if the student borrower is not alive.

Up to 90 per cent concession in principal and 100 per cent concession in interest would be considered on a case-to-case basis in the following cases:

(i) The student being incapacitated by terminal illness/invalid

(ii) The earning parent is deceased, the student is not employed, and the family does not have any other source of income

(iii) The earning parent is incapacitated by terminal illness/invalid, the student is not employed, and the family does not have any other source of income, and

(iv) The student did not secure a job for three years after successful completion of the course and the family is not in a position to repay the loan.

The official urged the student borrowers facing genuine difficulty in repaying their education loan to use this opportunity.