NEWS & ADVICE : EDUCATION LOANS
Interest subsidy scheme on education loans mandated on all banks
By Neelima Shankar
May 26, 2010
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All banks have been directed by the Government to implement interest subsidy scheme on education loans for unprivileged students who wish to pursue higher education.

The Government had been planning on implementing the interest rate subsidy since quite some time.

The Ministry of Human Resources and Development has generated a letter to the heads of all scheduled commercial banks wherein they have been asked to take appropriate measures in implementing the scheme so that the eligible students get a chance to avail higher education.

The scheme is made effective from academic year 2009-10, the HRD ministry said. A provision of Rs. 500 crore has been made for the scheme by the Government for the year 2010-11.

As per the scheme, student would be exempted from paying interest during the moratorium period.

Banks like Union Bank of India have come up with schemes benefitting students on a larger scale.


 


(Comments Posted : 270) Post Your Comments
1. Dear Sir/Madam,

Greetings of the day!!

I hope you are doing well.

This mail is in reference with the Central Government scheme to provide interest subsidy (CSIS).

Under this scheme central Government has allocated 2600 crs to provide interest subsidy to interest benefit to students in interim budget FY 2014-15.

I have taken the education loan of Rs 5.15 lacs in FY 2008-10 for my MBA program from a recognized institute, from Madhyanchal Gramin Bank (joint venture of Govt. of India, state bank of India & Govt. of M.P.). ( Earlier Rewa Sidhi Gramin Bank). It is a Regional Rural bank(RRB)

I have started paying my EMI from January 2011 i.e after 2.5 years.

When I applied the same with my branch in May’14, later when we enquired about the same with bank (Aug’14), the bank has informed us that I am not eligible for the scheme as this scheme is only applicable to defaulters (Who have not paid their EMI’s ). & they are not processing my file further for waiver. We have also contacted the Regional office but the same response is given.

Whereas, in the Govt. notification it is nowhere mentioned that this scheme is for defaulters.

I request you to pls. give the clarity on the scheme for the eligibility criteria. Whether I am eligible for the scheme or not, as my family income is less than 4.5 lacs per annum & the certificate of same has been deposited with the bank.

Request you to pls. look into the matter & revert as soon as possible.

I have also attached the notification of the central Government.

In case of any other details required from my side pls. do let me know.

Also suggest the future course of action from my end.


Thanks & regards,

Sumit Gupta
PH : 09096475320
sumit gupta (Posted: Aug 31, 2014)
2. AVAILED EDUCATION LOAN IN 2008 REPAYMENT STARTED FROM MARCH 2014 CAN I AVAIL INTEREST SUBSIDY DURING MORATORIUM PERIOD AS I HAD NOT PAID ANY INTEREST DURING THAT PERIOD
nikita s (Posted: Aug 22, 2014)
3. AVAILED EDUCATION LOAN IN 2008 REPAYMENT STARTED FROM MARCH 2014 CAN I AVAIL INTEREST SUBSIDY DURING MORATORIUM PERIOD AS I HAD NOT PAID ANY INTEREST DURING THAT PERIOD
nikita s (Posted: Aug 21, 2014)
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