Education loans offered by around 30 regional rural banks (RRBs) will now have the credit shield from the Credit Guarantee Fund Scheme for Education Loans, or CGFSEL, in a major push by the government to widen availability of funding support for students. This will bring RRBs on a par with commercial banks and help them lower interest rate on such loans, officials aware of the developments said.
“This is a major step towards further integrating regional banks, and it is expected that these lenders will be better able to provide credit to aspiring students at the grassroots level,” said a government official, requesting anonymity.
This will help widen the availability of education loans for students. Around 30 regional rural banks (RRBs) will now have the credit shield from the Credit Guarantee Fund Scheme for Education Loans.
