Education loans a problem at sub-6% growth’-: 

MUMBAI: Pratip Chaudhuri's tenure as SBI chairman has been one of extremes. The bank recorded its highest ever profit of Rs 14,105 crore, but this was marred by a surge in bad loans. The sell-off in bank stocks resulted in SBI losing its position as the most valuable bank but Chaudhuri reaffirmed its fundamentally strong image by bolstering Tier-I capital adequacy to well over 9% and providing for pension liabilities. Excerpts from an interview with TOI:

SBI has tightened income criteria for car loans. Will you do this for all retail loans?

We have done this for auto loans as we feel that those with higher income are less likely to default. 

loans are different because it is against property and it also enhances the borrower's income through rentals or savings in rent. Education loans will become a problem if, going forward, the economy does not grow at 6% as enough jobs won't be created and also employment would come at lower salaries. That is why we have extended the tenure of our education loan from five to twelve years. We hope the government brings in the guarantee scheme for education loans.

Preeti 

PGDM 3rd SEM