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 : 285) Post Your Comments
1. Hi,

I availed an education loan from Allahabad Bank, U.P. before 31.03.2009 which is due till now. I inquired with the Bank branch in Feb'14 about interest subsidy for which they asked me to fill up a form and submit with the bank. The Bank authorities said that post submission of form they will get a confirmation from concerned department only then they can process the subsidy waiver. But even after waiting for Months I have not received any confirmation on the processing of Interest waiver and exactly how much interest waive off will happen on my account.

Could you please provide any email ID on which i can raise a complaint and get it done at the earliest.
Preeti (Posted: Nov 12, 2014)
2. Hi Sir,

My name is Mohanraj.V I have taken Education loan Rs.102000 from Syndicate Bank for my B.E Course in the year 2005. As per the Central Scheme of Interest Subsidy for Educational Loans announced by our Finance Minister on 17th Feb 2014, the Outstanding Interest Component on the Loan will be waived off as on 31.12.2013.

When I approached the Syndicate Bank Branch (Tamilnadu) where I availed the Loan, the Manager said that they have not received any official statement from the Syndicate Bank higher authorities to proceed on waiving off the Interest and also he said that the subsidy amount will be directly credited to my Loan Account and I don't have to submit any documents to avail the subsidy. Manager said the subsidy will be handled directly by the Regional and I don't have to visit the Branch.

Note: My Family Income is less than 1 Lakh and am eligible to avail the Subsidy. I have also submitted the Income Certificate while availing the Loan.

Please guide us on how to avail the Subsidy.
V.Mohanraj (Posted: Nov 10, 2014)
3. Hi Sir,

My name is Mohanraj.V I have taken Education loan from Syndicate Bank for my B.E Course in the year 2005. As per the Central Scheme of Interest Subsidy for Educational Loans announced by our Finance Minister on 17th Feb 2014, the Outstanding Interest Component on the Loan will be waived off as on 31.12.2013.

When I approached the Syndicate Bank Branch (Tamilnadu) where I availed the Loan, the Manager said that they have not received any official statement from the Syndicate Bank higher authorities to proceed on waiving off the Interest and also he said that the subsidy amount will be directly credited to my Loan Account and I don't have to submit any documents to avail the subsidy. Manager said the subsidy will be handled directly by the Regional and I don't have to visit the Branch.

Note: My Family Income is less than 1 Lakh and am eligible to avail the Subsidy. I have also submitted the Income Certificate while availing the Loan.

Please guide me on how to avail the Subsidy.
V.Mohanraj (Posted: Nov 10, 2014)
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