Loans
Students in 28 states fail to get interest subsidy on education loans

In the absence of an authority to issue income certificates, students from several states are finding it difficult to get interest subsidy on education loans offered by the union government. This has also hampered banks from disbursing loans to needy students

Nearly a year after the central government finalised a scheme to provide interest subsidy on education loans for students from the economically weaker sections, many states and union territories have still not designated the income certificate issuing authority.

Canara Bank is the nodal bank for member banks of the Indian Banks' Association (IBA) to claim reimbursement of the interest amount. The scheme was planned and the details worked out by the Ministry of Human Resource Development over a year ago. But according to data on the Canara Bank website, as many as 28 states and union territories are yet to designate the income certificate issuing authority.

According to the ministry, under the scheme formulated by the IBA, full interest subsidy will be provided during the period of moratorium on education loan for students from families with an annual income of less than Rs4.5 lakh.

The ministry said recently, "Under the scheme, proof of income is required to be certified by authorities to be designated by the state governments. Accordingly, the ministry has written to all chief secretaries of states/union territories to intimate the designated authority/authorities (at the district/sub-district/block, etc levels) to the district level consultative committee (DLCC), so that banking authorities at the branch level where students apply for the loans, would be aware of the same. The eligible students may get the details of designated authorities from the concerned branch of the bank where they have availed of the loan."

Several banks have been trying to help students avail of the scheme, but their efforts have been hampered as students have not been able to find the authority that will issue an income certificate.

"We have already sent the claims to the nodal banks. But many of the states are yet to designate the income certificate issuing authority," said a senior official at a public sector bank that has its headquarters in Mumbai.

An Indian Bank official, who requested anonymity, told Moneylife that, "We have received and credited claims of more than 50,000 students. We forwarded these claims on the interest subsidy on education loans to Canara Bank for 2009-10. But a few states are yet to identify the authority to issue income certificate."

Students have complained they cannot identify the authority. One such complaint on the www.conumercourt.in reads: "I had taken education loan for my son studying in BITS Pilani, Hyderabad Campus. When the Central government decided to give interest subsidy for EWS, I applied for the same. However, the SBI authorities asked me to get an income certificate signed by MRO (tehsildar). On approaching my tehsildar, he said that there is no go which authorises me to sign income certificate. I had shown the memo issued by principal secretary to government to all collectors, but the MRO insists that he will not sign the income certificate and the SBI are not willing to accept my application. I am caught between the devil and deep sea (state and central governments)."

Meanwhile, the ministry has announced that 20 July 2011 is the last date to submit certificates to their respective branches, so that interest could be credited with interest due on the loans taken during the academic year 2009-10 onwards.

The current scheme on education loans also allows a deduction under section 80E of the Income-Tax Act for interest paid on the loan.

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COMMENTS

shankar

2 years ago

I have taken education loan from canara bank in 2009-2010 and i have finished all formalities in order to get education loan subsidy. But subsidy not yet deposited to my a/c. i asked bank people but they don't give correct information....

hariom mishra

2 years ago

Dear Sir,
I am Hariom mishra from Madhya pradesh i had taken education loan from union bank aof india in 2009 -10 and i am eligible for that subsidy but till now i have not receive right subsidy by bank kindly guide me for feature.

naga

2 years ago

Hi sir
I have a education loan in state bank of india in 2008(1.4lk), some period i didn’t pay the interest now in my account my outstanding amount is 2.2lk, i hope you aware of the interest subsidy 2014, till now i didn’t get any amount from interest subsidy, account shows same outstanding amount. Once i have got 6k for interest subsidy. At this situation am i eligible for get this interest subsidy 2014 ?

naga

2 years ago

Hi sir
I have a education loan in state bank of india in 2008(1.4lk), some period i didn’t pay the interest now in my account my outstanding amount is 2.2lk, i hope you aware of the interest subsidy 2014, till now i didn’t get any amount from interest subsidy, account shows same outstanding amount. Once i have got 6k for interest subsidy. At this situation am i eligible for get this interest subsidy 2014 ?

naga

2 years ago

Hi sir
I have a education loan in state bank of india in 2008(1.4lk), some period i didn’t pay the interest now in my account my outstanding amount is 2.2lk, i hope you aware of the interest subsidy 2014, till now i didn’t get any amount from interest subsidy, account shows same outstanding amount. Once i have got 6k for interest subsidy. At this situation am i eligible for get this interest subsidy 2014 ?

Gopi k

2 years ago

Hi sir, i have taken loan(1.17 L) during 2007-2011 batch(b.tech). Already i got subsidy of 10000 last year(2013), whether i will eligible for 2014 interest subsidy scheme . my family income below 3L only. please reply me.

karthikraja

2 years ago

sir,my name is karthik.i studing BE civil by education loan on uco Bank.i already get CCIS for last 1 year.but now the Bank manager is changed.New bank manager said me to pay my intrest(this month+last 1 year) within three days.when i ask about the CCIS she said "its an gov scheme they less this amount on future".(repaying time after my course completed)now u pay it or u will not get the next year(4th year) loan.pls tell me the detail about CCIS.give me a suggetion on this problem.now i am studing 3rd year.is that i need to pay my intrest or ......
thanking u i'm waiting for ur reply

Ashiqu

2 years ago

I am Ashiqu from ernakulam and studying for B.Tech and taken education loan from UBI, W/Island Branch. I got only 2% susidy eventhough I am below the income group 4.5 lakhs per year

Suresh Kothari

2 years ago

Dear Sir/Madam

My name is Suresh Kothari and I have taken loan for 1.60 lacs in Nov 2008 of Higher Studies from SBI Shaibhaug Branch. Government of India has announced Interest subsidy for weaker students. My parental income is below 4.50 lacs and I do not have job right now. My interest subsidy claim has been rejected due to irregular payment. I have paid lum sum amount many times but I haven't paid 3 EMI on time. Is this such criteria to not grant subsidy. This is not my case but same case with other students. Out of 367 figure only 14 students is benefited from this subsidy. I also refereed to Canara Bank criteria who is transferee of 3000 Cr Subsidy but in that I haven't found such a irregular criteria.

Please re asses your criteria as it is not benefited to many students. This criteria is set like manipulation which is not benefited my students.

With Regards
SURESH KOTHARI
Loan Account Number--- 30458402162
SBI Shahibhaug Branch--- Ahmedabad

9427067127

REPLY

Pramod

In Reply to Suresh Kothari 2 years ago

There is not any criteria that your account should be regular during moratorium period.You are eligible for CSIS.But it was not eligible for abroad studies.
You were eligible for New CSIS as announced by P.Chidambaram recently.Check whether your branch has claimed this or not?
P.N.Sharma
Officer SBI
8055114949

Nagesh Kini

In Reply to Suresh Kothari 2 years ago

Try approaching the Banking Ombudsman.

Saikiran

2 years ago

I have taken education loan in august 2010.I am eligible for CSIS.But i have not applied for it,as i got to know regarding this Interest Subsidy one week back.Now if i apply for this,can i get the interest subsidy for 2010-2013 years.Please reply me.
thank you

cn mukherjee

3 years ago

My son had availed education loan from bank of india and when he received one installment of interest subsidy the a/c was closed after full & final as he felt for overseas job assignment. Now will he received the rest subsidy due and how ?

gourav

3 years ago

where i can find the list of student who got their interest subsidy on education loan..

is there any official website for those who actually pays our interest..
i m an engineering student i applied for the same in SBI as i am studying in KIIT university and my loan is of 6 lack interest is increasing very fast.
i applied for interest subsidy of edu. loan but didn't got anything till now, where can i make query. bank officers are saying that if it will come we will let u know..
please suggest me what to do.

REPLY

nagesh kini

In Reply to gourav 3 years ago

You can possibly file a RTI query to the Customer Services Dept. of the RBI, Amar Building, PM Road, Mumbai 400 001. They may not disclose the individual names of students.

nagesh kini

In Reply to gourav 3 years ago

You can possibly file a RTI query to the Customer Services Dept. of the RBI, Amar Building, PM Road, Mumbai 400 001. They may not disclose the individual names of students.

gourav

3 years ago

where i can find the list of student who got their interest subsidy on education loan..

is there any official website for those who actually pays our interest..
i m an engineering student i applied for the same in SBI as i am studying in KIIT university and my loan is of 6 lack interest is increasing very fast.
i applied for interest subsidy of edu. loan but didn't got anything till now, where can i make query. bank officers are saying that if it will come we will let u know..
please suggest me what to do.

cn mukherjee

3 years ago

Would be obliged to know the address of CIC of H R department to place a RTI regarding some points on interest subsidy on higher education loan.

Ranjith Kumar

3 years ago

I have taken loan from Canara bank for pursuing B.tech IT in chennai.(2009-56,500 and 2010-56,500. total -1,13,000 ).Completed my course in 2011 and got employed in nov 2011. I was eligible for interest subsidy. so i have submitted all the documents.I have got interest subsidy for the period of duration of my course(2009-2010, 2010- 2011). But as per the scheme it is mentioned that interest subsidy will be provided for the moratorium period, which is duration of the course plus 1 yr or 6 months from the date of employment whichever is earlier. But when i contacted the bank manager he is telling that interest subsidy will be provided oly for the period of study and not for the additional 1 yr after the duration of the course. He is not taking any step to claim for interest subsidy for that 1 year after the course. Looking for someone who can advise and help on this.

REPLY

Ranjith Kumar

In Reply to nagesh kini 3 years ago

Hi Nagesh,
I have tried writing to regional manager of chennai, but no response as of now. Dont know what to do? also i am not sure clear if the interest will be provided for that additional 1 yr after the course. Can you please advice/help me on this.

nagesh kini

In Reply to Ranjith Kumar 3 years ago

Write to the CMD at Bengaluru and their Grievances Cell there.
Obtain a copy of the interest subsidy scheme from Canara Bank or the Customer Services Dept. RBI nearest Regional Office
.We'll try to make enquiries here too.

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