Saturday, July 30, 2016

Education Loan Interest Subsidy portal opens on 1st August 2016 for FY 2015-16

Ministry of HRD has advised Canara Bank to open the Interest Subsidy portal from 1st August 2016 to 31st October 2016 for primary claims of Interest Subsidy on Education Loan for Financial Year 2015-16.  As per guidelines, the Branch Managers have to identify the eligible student borrowers and submit the claim for interest subsidy for FY 2015-16 through Canara Bank portal.  In the past, many branch managers did not claim the subsidy for eligible students.  

In view of this, eligible students may submit a letter to the Branch Managers requesting them to claim the interest subsidy from the Government for FY 2015-16.  If the Bank does not submit the claim within the period, the students will not get any subsidy.  Though it is the responsibility of the Branch manager to submit the claim, in their own interest, students are advised to ensure that the branches submit the claim within the stipulated date.  

Students who have availed education loan under IBA scheme to pursue professional or technical courses are eligible for interest subsidy during the study period plus one year, if the parental income is less than 4.50 lakh per annum.  It is sufficient if the student submits the income certificate signed by Thasildar or competent authority only once at the time of availing the loan.  They need not submit the income certificate every year.  

ELTF does not entertain any direct contacts from the students and parents.  If they want any further clarification on interest subsidy, they have to approach the managers only.  If the Branch Managers do not respond properly or do not give proper information, the students can complain to the Regional Manager and also to the Chairman of the Bank in writing.  ELTF does not deal with individual grievances.  

T K Rangarajan MP raises education loan issues in Parliament

T K Rangarajan MP raises education loan issues in Parliament

Please read the text of the speech (26th July 2016) in Parliament of Shri T K Rangarjan, Member of Parliament, Rajya Sabha

T.K. Rangarajan M.P.,
Parliament Speech (26.7.2016)
Dear Sir,

At this zero hour I would like to bring to the attention of the house problem relating to educational loan.

This has two aspects.

One relating to sanction of the loan and the other relating to recovery of the loan.

The educational loan should not be equated with other loan. It is an investment on the youth of this country.

None of the Banks which show so much enthusiasm to create awareness about Home Loan and Car loan have come forward to create awareness about Educational loans. The Branch Managers shows no empathy for the students who approach them.

The Government announced 100% interest subsidy to eligible education loan borrowers. But in practice MHRD gave 20% interest subsidy shifting the 80% interest on the borrowers. And the Government not paying the interest subsidy, the loan is treated as NPA. The total mishandling of the subsidy has caused lot of inconvenience to the students.

Dear Sir, on the recovery side certain shameful thing are happening.

Now the State Bank of India has started selling their educational loans to Asset Reconstruction Companies. This resulted the Asset Reconstruction Companies approaching the borrowers like Shylock of Merchant of Venice and threatening the borrowers. In one case in Tamil Nadu the borrower of Educational Loan, not able to bear the harassment has committed suicide.
Sir in view of the importance of Educational Loan, which alone can help the Backward and SC/ST communities to go for higher education, I suggest that

1)                the Govt should issue the order to banks that they should not hand over these loans to Assets Reconstruction Companies.

2)                The special credit guarantee fund should be created to enable the Banks to claim their loan port folio

3)                The 100% interest subsidy promised by the Govt should be dispersed to Banks without any reduction

4)                The educational loan account in case of default should not be accounted under NPA.

Thank you Sir


* * *

Saturday, July 16, 2016

Insensitivity of State Bank of India kills a poor student - SBI harasses education loan borrowers through private agencies

16 July 2016

Shri Arjun Ram Meghwal ji
Hon'ble Minister of Finance

The Chief General Manager
Reserve Bank of India

The Chairman
State Bank of India

Shri T K Rangrajan MP
Dr Anbumani Ramadoss MP

Deputy Secretary, MHRD, Delhi
CEO, Indian Banks Association, Mumbai

Dear Shri Arjun Ram Meghwal ji

When the undersigned met you at Delhi on 11th July 2016, I explained to you the problems faced by the poor students while and after availing the education loan.  I also explained to you as to how State Bank of India is handling the Education loan borrowers in a highly high handed manner.

1.  State Bank of India does not allow the eligible youngsters to participate in the recrutiment process, if they have defaulted education loan.  When the students are suffering from unemployment, such insensitive and anti national and anti poor policy of SBIworks against theinterest of the nation.

2.  State Bank of India does not provide repayment schedule of 15 years as per the scheme.  They create NPAs artificially and then sell to Reliance Company (Asset Reconstruction Company).  Reliance harasses the students, even when the students are eligible for better repayment schedule from the bank..

Due to such insensitivity of State Bank of India, one of the students Lenin (son of a mason) committed suicide today at Madurai, without bearing the torture of the private agencies.  Please read the report in The Hindu today.

In another instance at the same place Madurai, one of the physically challenged student (hearing and speech impaired) and son of an auto driver was threatened by Reliance.  Interestingly, State Bank of India, has handed over his loan account even before he completed his studies.  The student is not able to get the next instalment of loan, since the account was closed and transferreed to Reliance.

Education Loan Task Force (ELTF) receives numberous complaints of insensitive attitude of SBI.  This would not have been possible, without the permission of the Chairperson.  The pdf file of  The Hindu report dated 12th July 2016 is attached. 

We request you to kindly investigate into this matter urgently and handover the case to CBI
so that the Bank does not kill poor students in future.  ELTF suggests suitable disciplinary action be initiated against the erring officials, including Regional Manager and even the Bank Chairperson who has issued such insensitive, anti-poor and anti-national orders.

Today many of the TV channels are discussing this issue.  The action of State Bank of India brings a bad image to Modi Government as anti-poor.  Kindly initiate action, before it gets further complicated.

Education Loan Task force

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