Govt mulls education loan waiver for Ukraine returnees

Tribune News Service

New Delhi, April 4

The government has decided to open stakeholder consultations on the issue of waiver of outstanding education loans taken by Indian students, who recently returned from Ukraine amid conflict.

Aassess impact of conflict on loans

The government has decided to ask the Indian Banks' Association to assess the impact of the conflict on outstanding education loans of the returnee students and to initiate stakeholder consultations in this regard. — Nirmala Sitharaman, FM

Finance Minister Nirmala Sitharaman on Monday informed Parliament that as of December 31, 2021, 1,319 Indian students had availed of education loan to study in Ukraine with the outstanding balance amounting to Rs 121.61 crore.

“As per the information received from public sector banks and 21 private sector banks, from the Indian Banks’ Association, as on December 31, 2021, 1,319 students had availed of education loan for study in Ukraine with outstanding balance of Rs 121.61 crore,” Sitharaman said in response to a query raised by Ludhiana Member of Parliament Ravneet Singh Bittu who wanted to know if the government was planning any loan waiver or interest relief to such students.

On the issue of waiver, Sitharaman said the current situation was fluid and the government was closely monitoring the developments.

“Implications of the ongoing conflict can be assessed and remedial steps considered only once the situation has stabilised. In the meantime, the government has decided to ask the Indian Banks’ Association to assess the impact of the conflict on outstanding education loans of the returnee students and to initiate stakeholder consultations in this regard,” the Finance Minister assured. As per the Ministry of External Affairs, around 22,500 Indian nationals, mostly students, have returned from Ukraine to India safely since February 1 this year.

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