With the rising credit crunch, and inflation looming in the air, most students are unable to find their way through the placements that colleges’ offer. Even in the great B-Schools of the country, the placement structure seems to be very gloomy. ,Most Graduates when they finally, get through admissions in their sought after postgraduate universities, they seem to be stuck towards the end of their program looking at the pay check they will eventually receive. This puts them in a tight spot as their pockets wont be enough to repay the student loan, which they borrowed from the earlier. The worst case scenario is for those students, who unknowingly, study in research institutions and colleges which are not legal and not accredited to the ministries of the particular states. The freshers suffer a hard blow of default because of their inability to secure an employment in the job market.
Increase in the number of defaults.
The problem of defaults have been on the rise for those students who have borrowed from the loan schemes of less than 4lakhs category, since these loans are lent without any collateral security.. The IBA(Indian Banks; Association) has decided , to come up with a grievance cell so that they can help students who are unable to pay the defaults due to lack of employment or less amounts of remuneration. The member banks’ have considered to take a case by case study of genuine requests so that they can look into the each students’ matter depending on the merits of rescheduling application. They said that the students will be benefited in a way such that, their moratorium period will be extended to two years from six months/ one year.
Speak out the truth
Approach your bank, who has provided you with your student loan and confess to them about the situation which your facing as of now- your lack of placement policy of the college, you inability to acquire a job coupled with the lack of employment oppurtunities. Make sure to be genuine in your reasons and try to convince the bank as much as possible so that they can atleast understand the situation at hand. Also do prepare yourself with how you want to restructure your repayment module so that some momentum can be gained.
Most probably, banks usually, do not waive off the EMIs or reduce the principle amount but usually adopt the course of extending the moratorium period for about 6 months or more depending on how grave your situation is. If you do not get a positive response from your branch manager, you can always approach the Regional/Zonal Officer and confront your situation.
Professional Advice always helps
If incase you think, you might not be very convincing to the bank, approach a credit counselling centre. Although their focus is on credit cards and personal loan, they still can manage you to give the best advice and direct you to the person who can solve your grievances and the points you need to bear in mind while approaching the bank.
Use the time wisely
Incase, your bank has agreed to reschedule your loan tenure, do not waste that grace period. Try to save alot, squander the city for employment as you are sure to get a job in this city of oppurtunities and most importantly, save. Try not to incur any unnecessary expenses and save all that you and do try to communicate with your family and relatives and see what kind of financial help can they pool in for the time being.