ELTF initiative - Special Mention in Rajya Sabha about Education Loan under Rule 180A

Monday, March 15, 2010

 

dear friends

Members are aware that under India Vision group, we have formed Education Loan Task Force (ELTF) to create awareness about education loan procedures among highly deserving poor students.  We have also been taking up the cases, where such poor students are harassed ny the banks,  with concerned Chairman and RBI.

Mr T K Rangarajan, Member of Parliament (Rajya Sabha representing CPI M) has been supporting our initiative since the beginning.  Today he made a 'Special Mention' in the Rajya Sabha about the Education Loan under Rule 180A.  Under this rule, matters of serious public importance can be brought to the notice of the Government as "Special Mention".  This will be taken up on priority basis by the Government and concerned Minister (in this case Finance Minister) will be giving his reply personally to Rajya Sabha shortly.

I spoke to Mr Rangarajan over phone (he is now in Delhi)  and thanked him on behalf of ELTF.  He said after he made the mention in the Rajya Sabha about this issue, few MPs cutting across party line, came to his seat and congratulated him and offered their support for this issue.  I am confident that due to the mention in Rajya Sabha, and the support of passionate MPs, this issue will gain more importance.  Mr Rangarajan said that he would also personally discuss this issue with Hon'ble Finance Minister.

On behalf of ELTF and Action 2020 Team of India Vision Group, we place on record our deep appreciation to Mr T K Rangarajan MP and other Parliamentarians, who offered to extend support to our initiative.

Please read the 'Special Mention' made by Mr Rangarajan MP in Rajya Sabha today (15th March 2010).

TEXT OF THE SPECIAL MENTION UNDER RULE 180A MADE IN RAJYA SABHA ON MARCH 15, 2010

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This century is considered as education century and education loan is an important one for the future development of India.  The students from very poor families who score high marks find very difficult to pursue higher education due to their poverty.  There is no uniformity of rules in sanctioning Education Loan by nationalised banks and the applicants have to undergo lot of hurdles.  Though RBI and IBA have given guidelines, many banks demand collateral security, guarantee even for the loan less than Rs.4 lakhs, insist on payment of monthly interest, insist on margin money ; charge higher rate of interest, etc.  Many brilliant poor students either go in search of NGOs for support or resort to borrowing at higher rate of interest.  Many deserving students could not pursue higher education due to lack of finance.  Banks hesitate to give education loan to highly deserving, brilliant poor students.

Educating the students is an important task of any Government.  And imparting higher education is an investment  on human resources and hence the educational loan should be interest free.  It should also advise the nationalised banks to popularise the education loan schemes through exhibition and advertisements.  The Government should immediately instruct nationalised banks to improve the disbursement of education loans.

The Government  for encouraging the banks to lend without hesitation may think of introducing credit guarantee for such loans.  The government may also think of susidising part of the loan disbursed by the banks to the students. 

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K. Srinivasan

Prime Point

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