Kodai Road: Union Finance Minister P Chidambaram today (July 31, 2004) said that bank officials should not insist on merit while giving education loan to the students.

The Finance Minister who enquired about the disbursement of education loan and how many persons had applied for the same, told reporters in Kodai Road that the education loan should be given "to study any professional course leading to a recognised degree".

The Minister pulled up the officials who insisted on collateral security or guarantor's signature for the education loan and ordered the bank officials to return the security given for education loan. He regretted the message about the education loan had not reached the bank officials.

The students could avail upto Rs.7.5 lakh as education loan. At some places when the SHG leaders demanded subsidy for the milch cow loans, the Minister said extending subsidy was a State subject.