NISA asks for moratorium on EMIs of school buses, other loans taken by school managements

CHANDIGARH: Worried over increased liabilities in terms of EMIs of school buses and other loans taken for creating the infrastructure, the National Independent Schools Association (NISA) has urged the RBI governor to allow moratorium so that the liabilities dont get added to the non performing assets.

In a communication to Shaktikanta Das, Governor RBI, the NISA president Kulbhushan Sharma categorically explained the losses suffered by school managements on the account of closure of schools due to Pandemic Lockdown for past one year.
He also calculated and elaborated upon the expenses of the schools in addition to the EMIs of schools buses and other vehicles, the building loan, infrastructure loan etc. He said that cumulative nationwide private schools have suffered a loss of over Rs 47000 crore in one year and its increasing along with liability.

"You see we are faced with pressure from all the sides. This year there are 90% fee arrears towards students. Even in past two years around 40percent students have not paid the school fee. Besides this, we are under pressure to not increase school fee or to ask parents to clear the school fee," he said.
See families of manageemnts can survive but what about the millions workforce of teaching and non teaching staff, especially class IV employees and drivers, how would they survive. Hence in given circumstances we are not able to pay off installments, hence moratorium is the only way out, he added.