The government may consider to increase the period of repayment of Education Loan. Finance Minister Pranab Mukherjee said period of 5 to seven years for repayment may be increased to 10 to 12 years and all public sectors banks have been asked to modify the rules. Talking to media after addressing Chief Executive Officers of Public Sector Banks and Financial Institutions, Mr. Mukherjee said banks have also been directed to increase the coverage under Kisaan Credit Card, KCC by 20 per cent, both in terms of numbers and amount.Mr. Mukherjee said the farm credit target for 2011-12 has been more than met. He said government is committed for the cause of farmers and four lakh 75 thousand crore rupees have been ear-marked as farm credit in the current fiscal. Mr. Mukherjee said that more than 43,000 villages with over population of over 2000 will be brought under the banking network by March 2012. He said under the financial inclusion programme as announced in the Budget, 29 thousand such villages have already been covered during the first year.Mr. Mukherjee said the net profit of banks grew by 14.38 per cent in 2011-12. He, however, expressed concerned over the increase in non-performing asset last fiscal. In reply to a question the Finance Minister said that the task force headed by Nandan Nilekani has submitted an interim report and now banks have to play a major role for inclusive growth and expansion of banking facilities. Mr. Mukherjee said Business correspondent will have an important role in achieving the target of banking facilities expansion.
News On AIR | July 8, 2011 4:48 PM
Govt may increase repayment period of Education Loan