MHRD opens the web portal for submission of Eduction Loan interest subsidy claims - Eligible students to contact the branch manager to ensure the submission

Ministry of Human Resources Development (MHRD), Government of India has advised Canara Bank, Nodal Bank to open the Web portal to enable the banks to submit the Education Loan Interest Subsidy claims for the FY 2016-17 from 23rd August 2017 to 23rd November 2017.

Eligiblity

All the students who have availed Education Loan from the Banks under Indian Banks' Association  (IBA) Scheme to pursue professional / technical courses in India are eligible to avail the full interest subsidy, if the annual parental income is less than Rs.4.50 lakhs.  It is enough, if the parents submit the income certificate signed by the competent authority at the time of availing the loan.  As per Central Scheme to provide Interest Subsidy (CSIS) for Education Loans,  MHRD provides full interest subsidy to the eligible students during the study period plus one year moratorium period.  

In the past, several banks did not claim subsidy to the eligible students due to lack of knowledge about CSIS Scheme among the bank officials. Many eligible students did not get the subsidy.   ELTF has been repeatedly taking up with Ministry directly and also through Parliament Members.  Now, IBA has directed all the Banks to provide training to all the Bank officials on the CSIS Scheme and to ensure claims are submitted in time without errors. 

Students to contact Branch Manager 

Canara Bank has opened the web portal on 23rd August 2017 and it will remain open till 23rd November 2017.  It is the responsibility of the Banks to submit the claims properly within the due date.  If the Banks do not submit the claims, the eligible students may be denied the subsidy.  In view of this, the eligible students, in their own interest, may meet the respective  Branch managers and handover a letter under copy to the Zonal Manager of the Bank  requesting them to submit the claim in time.  

Legal remedy if the Bank fails to submit the claim

If any Bank fails to submit the claims in time for  eligible student borrowers, the students can seek legal remedy through District Consumer Disputes Redressal Forum of their District for deficiency of service claiming damages and compensation. Students can also approach the Banking Ombudsman of RBI for redressal of grievances.