#Kolkata: The complexity of giving loans to students through Student Credit Card is practically being cut. At least that is the news from the state finance department and higher education department. After a stern warning from the chief secretary, the private banks finally entered into an agreement with the state. Two weeks ago, a private bank signed an agreement with the state. Late last week, another private bank signed an agreement with the state to provide loans through student credit cards.
Sources said that most of the applications from students came through those two private banks. With the signing of the agreement with two private banks, the pace of lending through Student Credit Card has increased a lot.
According to the higher education department, two more state-owned banks are set to sign agreements with the state before Pujo. In that case, two thousand more student loans will be sanctioned before Pujo (Student Credit Card). That means a total of 3,000 student loans will be sanctioned before Pujo, officials of the higher education department said. The number has exceeded 1 lakh.
About 50 per cent of the applicants have applied for a loan through a state-owned bank. However, state finance officials are hoping for an agreement with the state-owned bank after Pujo.
Officials from the finance ministry and higher education department hope the whole process will pick up speed. Co-operative banks have already rejected multiple student applications. Sources said that the state has also appealed to the banks to consider the applications of those students. Earlier this month, Chief Secretary Harikrishna Dwivedi gave a strong message to the banks. Nabanna also sent a message to the districts to withdraw their accounts if they did not cooperate with the state government’s projects. The message was also sent to the district magistrate to keep accounts in the banks which would cooperate in the government project. The Chief Secretary recently held a virtual meeting with the banks.
All in all, the officials of the higher education department and the finance department are seeing the light of hope for the students to get loans through student credit cards. Co-operative Bank and a state-owned bank were contracted early in the project. There is no doubt that with the gradual contracts of private banks and other state-owned banks, the complexity of the student credit card is getting cut.