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Nursing, Engineering Tops List of Bad Debts; Education Loan NPAs Declined to 7 6%

 2 The percentage of education loans that has become non-performing assets (NPAs) has declined over the past three years. However, surprisingly, nursing and engineering are the top two streams where percentage-wise NPAs are the highest, shows information provided in the Lok Sabha.    In a written reply, finance minister Nirmala Sitharaman says, The NPA level in respect of education loans has come down to 7.61% as on 31 March 2020 from 8.11% as on 31 March 2018.   Reserve Bank of India (RBI), in a circular dated 6 August 2020, provided a framework for resolution of stressed assets to enable the lenders to implement a resolution plan in respect of personal loans, including education loans, covering grant of moratorium of up to two years while classifying them as standard subject to certain conditions. Further, the government provided ex-gratia relief by way of payment of difference between compound interest and simple interest, on the outstanding as on 29 February 2020, of

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