Singampunari (TN) (PTI): In a move to simplify education loan formalities, six to seven banks in the country would provide "Online loan application" facility from this academic year, Finance Minister P Chidambaram said.

Inaugurating the 1327th branch of the Oriental Bank of Commerce here on Sunday, he said the facility will be extended to all the banks in the course of this year itself. The nationalised banks in India created a world record in the last financial year when they provided education loan to 12,51,692 students to the tune of Rs.19,771 crore, he said.

"It is world record that a country holds.In no country such a large number of students have been given education loan.I am not including the education loan extended by the private banks when I mention it is a world record.It is also a historic achievement. The loans help the middle class and poor people," Chidambaram said.

The government had given strict instructions to provide loan for all students who had secured seats in higher educational institutes and people should utilise the facility, he said.