All pending interest subsidy claims can be submitted immediately as one time measure

Under instructions from MHRD, Indian Banks' Association has notified that all pending interest subsidy claims (1.4.2009 to 31.3.2014) belonging to SC/ST and General category can be submitted immediately by the bank branches to the nodal bank.  

The eligible students, who did not get the interest subsidy earlier may immediately meet the Manager and submit a letter of request to the Bank.  They can also give the copy of the notification to the branches.  If the Branch Managers do not respond positively, the students can report to the Chairman of the Bank and also to Reserve Bank of India.

Canara Bank will open the portal on 1st Sep 2015 and close on 15th Sep 2015.  The eligible students may meet the Bank Manager and give a letter requesting him to submit the pending claims within the due date.

The copy of the notification:

No RB/CIR/CSIS/15

26^th  August, 2015

VERY URGENT

To:

The Chief Executives of Member Banks

Dear Sir/Madam,

Opening of CSIS portal for claiming CSIS subsidy for

OLD CASES-final chance

The Ministry of HRD vide their communication dated 20^th August, 2015 has advised to keep the web portal open and sensitize all the banks that, this is the last opportunity for banks to lodge the claims and ensure that the eligible students who have availed education loans  are not deprived of the benefit of interest relief. The Ministry of HRD has requested IBA to advise members banks that portal will be opened for lodging all old pending claims in respect of ALL THE ELIGIBLE unclaimed cases [including SC/ST and General Category] for the period from the year 01.04.2009 to 31.03.2014 as a onetime measure.  This will be the final chance.

Accordingly, the Nodal bank viz. Canara Bank has informed us that they are in process of opening the CSIS Web Portal for submission of the old pending / left over cases and will be informing the date of the opening of portal very soon. 

In the meantime, we request all the members to please keep the required details ready for submission of the eligible claims.  KINDLY NOTE THAT THIS WILL BE THE FINAL ONETIME MEASURE AND THERE WILL BE NO MORE OPPORTUNITY TO CLAIM THE CSIS SUBSIDY for the old claims for the period from the year 01.04.2009 to 31.03.2014.

Please note that the CSIS Scheme is also applicable to RRBs, we request all sponsoring Public Sector Banks to inform their respective RRBs to take necessary action in the matter.

Please be guided accordingly with immediate effect.

Yours faithfully,

K Unnikrishnan

Dy. Chief Executive

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Interest subsidy claims for 2014-15 to be submitted before 25th September 2015

All Bank Branches should submit the interest subsidy claims for 2014-15 before 25th September 2015.  Though it is the duty of all the branch managers to submit the claim to the nodal bank Canara Bank before the due date, in the past, due to various reasons, managers have not submitted the claims properly. This has resulted in many eligible poor students not getting the interest subsidy from the Government.

Students who have availed education loans under IBA Scheme pursuing professional or technical courses in the approved institutions and whose annual parental income is less than Rs.4.50 lakhs are eligible for 100% interest subsidy during the moratorium period.  They should have submitted the income certificate duly signed by Thasilldar. 

Eligible students may meet the branch managers and get the confirmation that the Branch has included their name and the exact amount (100% of interest charged during 2014-15).  The students can also submit a letter to the Managers seeking confirmation for having submitted the claim.  They can endorse a copy to the concerned Regional Managers and the Branch Managers.  We are suggesting this as an abundant caution.

If the Branch Managers refuse to give proper information, the students can write a complaint to the Chairman of the Bank and to the Regional Manager.

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AADHAR Card not mandatory for processing of Education Loans

We are receiving complaints that some of the banks are not processing / sanctioning the Education loan applications if the applicants do not submit the AADHAR card.  When we sought clarification from the Nodal Bank Canara Bank, Shri Badrinath, AGM, Canara Bank Head Office has responded to us the following quoting IBA guidelines.  From these guidelines, it is clear that Aadhar cards are not mandatory for processing the education loan applications.

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IBA Mumbai during the revision of Education loan scheme guidelines had advised banks to Obtain UID number issued by  UIDAI ( Aadhaar ) to the students and note the same in the System.

Accordingly we had  issued guidelines to the branches to prevail upon the students to submit the PAN/AADHAAR card particulars before completion of the course.

Wherever a student is not having UID number, branches are advised to obtain undertaking letter from the student for submission at a later specified date. However, the disbursement in subsequent years should not be stopped for the said reason. The same should be followed up till submission for noting in records. 

From the above , it is clear that obtention of AADHAAR card is neither mandatory nor a condition for sanction of loan.

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Mr Unnikrishnan, Deputy Chief Executive of Indian Banks' Association has further clarified as follows:

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Aadhar is not mandatory for sanction of Education loan, but students are advised to submit Aadhar before completion of course.

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