KOLLAM: The banks go after small borrowers, including those who have taken education loans, and threaten them with revenue recovery proceedings while letting off big fish like Vijay Mallya. The parents of nursing students here have alleged that they have been harassed by the banks with the help of third party agencies even after the government had declared a moratorium on the loans. The banks also violate the RBI norms on granting loans.
“The banks are driving the students and parents to commit suicide by resorting to unethical means to recover the education loans. Nearly 85 percent of students who have completed the courses have not got proper jobs and work for meagre wages on contract. Even the amounts repaid are not taken into account by the banks,” alleged Mr S. Raghavan, district secretary, Indian Nurses’ Parents’ Association here.
“A parent, Mr. Vijayan of Punnala, who took a loan of Rs 1.35 lakh from SBT, Punnala branch, had repaid '1.95 lakh. However, the bank has allegedly threatened him to pay more money or face recovery proceedings,” he said. But bank manager Kuriakose told DC that the parent had repaid only the loan interest.
According to the RBI norms, loans up to '4 lakh don’t require a security bond. However, the banks have taken the personal guarantee of the parents and other documents, including land, ownership certificates, salary certificate, land tax receipt and bond papers for sanctioning the loans, Raghavan alleged.
“The banks often use third parties, including the Reliance and revenue recovery department, to threaten the students and parents to repay the amounts. Those who have paid back their loans also are forced to pay more,” Mr. Raghavan said. The association has warned of a statewide agitation if the government fails to intervene in the issue.
