An official from the Ministry of Financial Aid (MFAs) says that schools are going to be closed on August 3rd and that the closure will be permanent.
However, the school closures are not the only reason behind schools being shut.
An official at the State Bank of India (SBI) says the main issue is the lack of demand from students for their loans.
In a recent survey conducted by the Federation of State Bank Boards, a whopping 84% of students said they are not going to pay their loans even though they have applied for loans in the past and even if they do not repay their loans they will not get them back.
The students said that if they can get their loan approved through the loan approval scheme, then they will get it back.
However since there are no applications for the loans that students are not able to get their loans approved through it, students are having to apply for loans through banks.
The MFAs official said that the main issues are the lack for liquidity in the system and the lack to pay the students’ loans.
The official said, “Students are not getting loans and their interest rates are higher than the average rate.
The banks have been providing loans at the prevailing rates for a few months now.
We are trying to change the process and get students out of this situation.”