Saturday, November 10, 2012

No service area approach for Education Loan - RBI

Reserve Bank of India has issued notification on 9th November 2012 as follows:


We have been receiving a number of complaints where students have been refused educational loan as the residence of the  borrower does not fall under the bank's service area. In this connection, we advise that Service area norms are to be followed only in the case of Government sponsored schemes as advised in our circular RPCD.LBS (SAA).BC.No.62/08.01.00/2004-05 dated December 8, 2004 and are not applicable to sanction of educational loans.  

2. Hence, banks are advised not to reject any educational loan application for reasons that the residence of the borrower does not fall under the bank's service area. 

3. You are, therefore requested to issue suitable instructions to your branches / controlling offices for meticulous and strict compliance in this regard. 



If the banks reject the education loan applications from students, quoting the 'service area concept', students can quote this circular.  If still the branch managers do not accept the application for processing, the students can complain to Reserve Bank of India through mail id or send a fax to RBI, Mumbai 91-22-22621011/ 22658273/ 22658276

Monday, November 5, 2012

Govt. extends time to submit Interest Subsidy claims of previous years

Indian Bank's Association has issued a guideline, in consultation with Government of India granting extension of time for submission of interest subsidy claim by the banks to the nodal agency.  The students, who did not submit earlier the income certificate for claiming interest subsidy, may now meet the concerned bank managers and take guidance.

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