The First Victim Whose Education Loan is transferred from SBI to Reliance ARC
Sale of Education Loan by State Bank Of India to Reliance ARC claims the life of K. Lenin, a native of Anuppanadi, Madurai. I wrote a post about the transfer of education loan to Reliance ARC on 16/05/2016. But I really feel it is useless as it didn’t bring any change. Tamil Nadu government promises to waive off education loan of all unemployed youth and still we didn’t feel any ignition in the commencement of the process.
Waiving off the loan is a separate concept, but before this, the government should take necessary steps to stop the leading lender “SBI” to sell the education loan to Reliance ARC. I know state government has nothing to do with but I believe that the situation could become better if the government interferes.
Faults in sale of Education loan from SBI to Reliance ARC
Check out the letter which came to my friend from SBI notifying the transfer of loan from SBI to Reliance ARC. In K. Lenin’s case the repayment tenure starts after June 2016. I’m quite surprised how SBI classified his education loan as NPA and sold to Reliance ARC.
Another interesting fault was the sale of education loan to Reliance ARC even while the student is studying. B. Rakesh, a hearing and speech impaired student whose loan was transferred by SBI due to a technical error (As stated in The Hindu dated on 28/07/2016)
What Step SBI can take than selling the loan to Reliance ARC
Instead of selling the loan outstanding at a highly subsidized rate, the lender could have extended the same offer to its fellow borrowers by organizing a common meeting or with a press release. Or at least they could get its borrowers consent before selling their loan. So that the people could get some breathing time to explore the opportunities.
I would request you to share this article and create an awareness among your friends and family. It’s time to create a campaign.
Any comments on the transfer of education loan from SBI to Reliance ARC is welcomed.
— Alagu rajeshwaran (@Rajeshwarkp) July 28, 2016