Portal opened for claiming unclaimed Education Loan interest subsidy

Nodal Bank Canara Bank has today (7th Sep 2015) opened the portal for claiming, unclaimed Education Loan interest subsidy for the loans disbursed during 2009-10 to 2013-14.  This is an one time opportunity for all Banks to claim the left out interest subsidy claims.  The portal will remain open for 30 days from today. 

Eligibility

Government of India, Ministry of HRD is implementing Educational Loan Interest Subsidy Scheme from 2009-10.  Economically weaker section students whose parental income is less than Rs.4.50 lakhs, pursuing professional and technical courses in India are eligible for 100% interest subsidy during the moratorium period, when they avail education loan under IBA model scheme.   Moratorium period is the study period plus one year or six months after getting employment whichever is earlier.

We have written in detail about the eligibility in the following link.

http://www.eltf.in/2015/09/clarifications-on-education-loan.html

Claim for old cases (2009-10 to 2013-14)

The students who are eligible for interest subsidy and who have not received the subsidy earlier may contact the Branch Manager and submit a letter requesting him to submit the claim.  If the Branches says that they have not received any communication from their Head Office, the students can politely ask them to check up with their head office.  Still if the Branches do not respond, the students can complain directly to the Regional Manager and Chairman of the Bank.   If the claim is not submitted by the Banks for old cases before 10th October 2015, the eligible students cannot claim the interest subsidy later.  

The copy of the IBA letter is as follows:

Quote
No.RB/CIR/CSIS/26
9th September, 2015

VERY URGENT

To:

The Chief Executives of Member Banks

Dear Sir/Madam,

Web Portal Open from 7.9.2015 to 10.10.2015 - Last option to claim subsidy for old  cases under CSIS

We invite your kind attention to our circular No.RB/CIR/CSIS/15 dated 26th  August, 2015  regarding 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 (copy enclosed).

In this connection, we have now been informed that, the Nodal Bank viz. Canara Bank would keep the web portal open for the period from 7.9.2015 to 10.10.2015 (both days inclusive) for uploading of leftover CSIS claims by the member banks for the year viz. 2009-10, 2010-11, 2011-12, 2012-13 and 2013-14.

We therefore, request all our member banks to upload all eligible left over claims at an early date, as there will not be any further opportunity for the same as per the instructions of MoHRD, Government of India.

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

Unquote

Claim for 2014-15

The portal for claiming interest subsidy for 2014-15 is already open and will be closed on 25th Sep 2015. 

The eligible students can also confirm with their Branches that their eligible interest subsidy for 2014-15, I repeat for 2014-15 has been submitted to the nodal bank.  If not submitted, they have to submit before 25th Sep 2015.  Banks should claim 100% of the interest charged by them, as subsidy for eligible students.

Ref: http://www.iba.org.in/Documents/CIRCULAR_25715.pdf

In both the cases (old and current), if the claims are not submitted the branches within the due date, the students will not get the interest subsidy.  In their own interest, students are advised to check with their Branches.  If they need further help or clarification, they have to approach only the higher officials of the Bank.

ELTF does not follow up with individual cases.  Please do not write to us or try to contact us.  The students have to take up only with Bank officials.

3:16 AM

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

10:52 PM

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.

8:54 AM

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.

quote

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.

UnQuote

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

Quote

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

Unquote

7:29 AM

One more opportunity for SC/ST students to claim interest subsidy before 31st Dec 2014

Indian Banks Association has now issued a circular advising all the banks to submit any left out interest subsidy claims relating to eligible SC/ST students who have availed education loan from the banks.  Since the funds allotted to SC/ST students are not fully utilised, they are now advising all the banks to submit the claims from 1.4.2009 onwards till the financial year 2013-14.  This is not applicable for 'General category' students. 

The claims have to be submitted by the respective banks before 31st December 2014 to nodal bank Canara Bank.  If there are any eligible SC/ST students who have not claimed interest subsidy in the previous years may now avail this opportunity.  ELTF requests such eligible students to meet their Branch Manager with a copy of this IBA guideline and complete the formalities.

If the Branch Managers refuse to cooperate or show ignorance of this notification, the eligible students may meet the concerned Regional Manager and submit a written complaint to him.  They can also submit a written complaint to the Chairman of the Bank.  The last date for submission of claim by the banks is 31st December 2014.  

Education loan subsidy scheme IBA circular nov 2014 from Prime Point Foundation, Chennai

10:10 PM

IBA clarifications on Education Loan and Iinterest subsidy

Finance Minister and IBA response on
Education Loan and interest subsidy

Mr Hansraj G Ahir, Member of Parliament from Maharashtra, at the request of ELTF, took up the problems faced by the students while availing education loan with the Prime Minister and Finance Minister on 4th Sep 2013.  Now MOS (Finance) has responded to Mr Hansraj attaching the comments from Indian Banks Association.  

As per IBA, the banks should not refuse loans citing service area.  Also, the eligible students need not pay any interest to the bank during the study period and moratorium period. The banks are required to communicate the decision within 15 to 30 days.  If the students get admission through common merit based admission process (like Anna University Counselling), banks should not insist on minimum marks.  

Please go through the communication from IBA for more details, by clicking on the image posted above.

  

12:55 AM

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.

9:53 PM

IBA directs Banks to reduce harassment of students

The following letter may be downloaded form IBA site
http://www.iba.org.in/Documents/cirmembers%2027912.doc

The latest IBA scheme may be downloaded from our site
http://www.eltf.in/2012/10/education-loan-iba-scheme-effective.html

Chief Executive

No. CE/220

27^th September, 2012

To:

Chief Executives of all Member Banks:

Dear Sirs / Madam,

Educational Loan Scheme – Grievance prone areas discussed at the Review meeting

with Chief Executives of Public Sector Banks taken by Hon’ble Finance Minister on 18^th August, 2012 at New Delhi

At the above meeting, Hon’ble Finance Minister brought out a number of areas in the implementation of Educational Loan Scheme where the Govt. was constantly receiving grievances / complaints from affected students / parents.  We list below the major areas of grievance pointed out by the Minister:

• Refusal to finance outside the bank’s designated service area
• Delay in sanction of limits and repeated refusal of loan on flimsy grounds         
• Absence of a proper grievance redressal mechanism in  banks         
• Need to consider loans to meritorious students pursuing courses offered under management quota
• Non-inclusion of nursing course in the list of eligible courses by some banks

The position in respect of the above issues were reviewed by IBA first, at the level of Committee on Educational Loan Scheme and,  thereafter,  by the Managing Committee at its meeting held on 21^st September, 2012.  Based on the discussions / decisions taken by the Managing Committee, we advise as under:

  

1.      Refusal to finance outside the bank’s designated service area:

The Model Educational Loan Scheme has not stipulated a service area approach to finance under the scheme.  While proximity to the residence of parents was considered an advantage in KYC compliance, the scheme allows the student to have a choice in deciding on the bank from where to borrow.  The Committee, however, noted that SLBC in Kerala and some of the DLCCs in Tamil Nadu had allocated villages / wards in urban centres to different  banks for the purpose of entertaining applications under Educational Loan Scheme.  This, we understand,  was an attempt to evenly distribute loan applications among participating banks.  The Managing Committee felt that such arrangements should not preclude a student from approaching any bank of his choice for sanction of loan.  The Member Banks are therefore, requested to instruct their branches not to reject loan applications merely for the reason that the particular area is allocated to another bank by SLBC / DLCCs.

2.      Delay in sanction of limits and repeated refusal of loan on flimsy ground:

The Model Educational Loan Scheme envisages that in the normal course, an education loan should be sanctioned / rejected within a period of 15 days of receipt of duly completed application with supporting documents.  Rejection, if any, has to be with the approval of controlling authority of the branch concerned and the reason for rejecting should be communicated to the students in writing. The Managing Committee decided to reiterate the position and appeal to the banks to ensure that the branches follow the laid down norms in sanctioning / rejection of loan applications.

3.      Absence of a proper grievance redressal mechanism in the bank

The guidelines issued by Reserve Bank of India and Govt. of India require banks to have robust grievance redressal mechanism within the institution.  The arrangements need to be widely publicized with details of contact persons / escalation matrix etc.  The Managing Committee decided to draw the attention of banks to the need to have these facilities made available / known  to students approaching the banks for sanction of loan.  The Committee also suggested that the banks may provide a toll free line for receipt of complaints and the number may be prominently displayed in the branch premises.  It was also decided that banks should take penal action against branch  managers who repeatedly refused / rejected applications for education loan.  The controlling authorities should be advised to counsel  such officials initially.  Officers who do not show improvements in this regard may be warned in writing and thereafter banks could initiate such disciplinary  measures as  deemed fit. 

4.      Need to consider loans to meritorious students pursuing courses offered under management quota:

The Managing Committee considered the recommendations made by the IBA Committee on Educational Loan Scheme and after detailed discussions decided to incorporate a provision for financing meritorious students who pursue courses under management quota seat in an institution for reasons of convenience (proximity) or choice of course.

We enclose a copy of the  revised Model Educational Loan Scheme. Your attention is drawn to changes made in paragraph 4.1 and notes to paragraph 4.3 in this regard. The changes made are indicated in bold italics. 

5.      Non-inclusion of nursing course in the list of eligible courses by some banks:

The Managing Committee observed that the Model Educational Loan Scheme provided for financing students who pursue degree / diploma in nursing in recognized institutions.  Many of the banks had also reported that they were sanctioning loans for pursuing nursing courses.  Managing Committee after detailed discussions decided to include degree / diploma in nursing in the indicative list of eligible courses and these are made in Para 4.2 (a).

We have duly incorporated necessary changes in the existing scheme after approval by the IBA Managing Committee.  We enclose copy of  Model Educational Loan Scheme for pursuing higher education in India and Abroad (September, 2012) for Member Banks’ information and necessary action.

Yours faithfully,

(K Ramakrishnan)

Encl: IBA Educational Loan Scheme  (September, 2012)

8:06 AM