SBI faces flak for move to recover loans using Reliance

The SBI’s  plan to recover defaulted education loans through a Reliance firm came under criticism from several MPs on Friday in the Rajya Sabha. The members demanded the government’s intervention to reverse the decision.

The issue was raised by CPM MP K K Ragesh during the Zero Hour, who said that SBI has sold bad education loans to the tune of Rs 847 crore to Reliance Assets Reconstructions Company. “The Reliance company had to pay back only 45% of the total loan amount and that too over a period of 15 years. Why is SBI taking such a decision?” he said.

Ragesh, a former student  leader, said if such a concession is given to students, they will repay the loan.

Seeking the Centre’s intervention to reverse SBI’s decision, he said it is the students from socially and educationally backward sections who are availing education loans.

“Why are they not in a position to pay back the loans? That is because of the poor quality of education and the unemployment situation that exist in our country. All these are the reasons why students are not in a position to pay back the loans,” he said.