Last month, Finance Minister P Chidambaram presented a written document to the Rajya Sabha members regarding their queries about the application of the Model Education Loan Scheme. He stated that under the scheme, the banks are directed to clear the loan applications within a time span of 15 to 30 days.
He acknowledged that in most of the cases the PSU banks were following the time limit, if the details furnished in the applications were found to be sufficient in all respect. He further said that according to Reserve Bank of India, the public sector banks had sanctioned education loans worth Rs 18,990 crores, which were outstanding as on November 23, 2007.
In addition to this he said that the Government has also advised the banks to develop an online medium of downloading and filling the loan application. This would help the applicants to apply online and also keep a track of the status of their application form.
Following his reply to the Rajya Sabha the FM again reminded the PSU banks to follow the norms set in the Model Education Loan Scheme.