The banks in the State have disbursed education loans to the tune of ₹1,047.33 crore across 68,405 accounts under the priority sector in the financial year 2021-22, which is below the target fixed for the year.
According to data from State Level Bankers’ Committee - Tamil Nadu (SLBC), the target fixed as per the annual credit plan was ₹1,666 crore across 2,17,511 accounts for education loan under the priority sector category for 2021-22.
Banks have to set aside a specific portion of their lending to sectors deemed important by the Reserve Bank of India, under the priority sector lending guidelines. Loans to individuals for educational purposes, including vocational courses, not exceeding ₹20 lakh are considered eligible for priority sector classification.
