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 : 194) Post Your Comments
1. Dear Sir,

I have taken Education loan between 2006-2008 from SBI Panna (MP) branch of Rs. 2,69,000/- and till date i has paid approx Rs. 3 Lac even after getting financial crisis in this type of market scenario i.e.Recession. Last year i got chronic disease so as on date suffering from Hepatitis B so unable to pay remaining amount on such time govt has subdisied to those have borrowed education loan before 2009 so i come under this scheme but at the time Election Commission has ban this scheme.
Now we dont know the scheme will be implemented after election or not so getting very confusion and if will get benefitted then what we have to do to avail such scheme.
Please help and suggest better way to get advantage of scheme.
Umakant Mishra (Posted: Apr 18, 2014)
2. Dear Sir,

I have taken Education loan between 2006-2008 from SBI Panna (MP) branch of Rs. 2,69,000/- and till date i has paid approx Rs. 3 Lac even after getting financial crisis in this type of market scenario i.e.Recession. Last year i got chronic disease so as on date suffering from Hepatitis B so unable to pay remaining amount on such time govt has subdisied to those have borrowed education loan before 2009 so i come under this scheme but at the time Election Commission has ban this scheme.
Now we dont know the scheme will be implemented after election or not so getting very confusion and if will get benefitted then what we have to do to avail such scheme.
Please help and suggest better way to get advantage of scheme.
Umakant Mishra (Posted: Apr 18, 2014)
3. sir i have taken education loan from SBI in 2010,i have paid only26000 till now . i belong to poor family ,bank has close my loan a\c and he is collecting my installment right of .am eligible for subsidy or not and how will i get subsidy facility can u...
manojkumar (Posted: Apr 14, 2014)
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