Hyderabad: Banks are demanding substantial financial assets in order to give a guarantee from their end. “To obtain a bank guarantee, banks are charging Rs 4.6 lakh of service tax, Rs 36 lakh in deposits or property worth Rs 27 lakh and Rs 9 lakh deposits along with documents. The fees have also been hiked sharply all of a sudden this year,” said a parent B. Vanajakshi.
In AP, on the request of ministers and the government, the bank guarantee value was reduced. However, in TS, private medical colleges are adamant that a bank guarantee against the four years’ fees be produced, totaling Rs 36 lakh.
C. Lakshmi Narsimha Rao, president, TS Private Medical and Dental Colleges Association, said, “If a student joins and after the first year, he is not in a position to pay the fees, who will reimburse the college? The seat will go waste. We have to have a mechanism against that. We are seeking four years’ bank guarantee and there is no going back on that.”
In AP, FDs are accepted. “We asked for four years’ bank guarantee. but the state requested us so we are seeking only one year now,” Dr G. Bhaskar Rao, president, All India Private Medical Colleges Association.
