Education Loan : Clarifications On Education Loan Interest Subsidy Scheme - PowerPoint PPT Presentation

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Education Loan : Clarifications On Education Loan Interest Subsidy Scheme

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Government of India (Ministry of HRD) provides 100% interest subsidy for the eligible students (as given earlier) for all the loans disbursed on or after 1.4.2009 during the moratorium period. – PowerPoint PPT presentation

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Title: Education Loan : Clarifications On Education Loan Interest Subsidy Scheme


1
Education Loan
2
Clarifications On Education Loan Interest Subsidy
Scheme
3
  • ELTF has been getting lot of enquirers from
    different part of country seeking clarifications
    on 'Interest Subsidy Scheme'.
  • There are two types of Interest Subsidy scheme
    for students pursuing education in India.
  • 1. First Scheme For Loans granted / disbursed
    on or after 1st April 2009
  • 2. Second Scheme For Loans granted / disbursed
    prior to 1st April 2009

4
For Loans granted prior to 1.4.2009
  • In Feb 2014, Shri P Chidambaram (then Finance
    Minister) announced in the Parliament that
    Government would reimburse 100 of the interest
    outstanding as on 31.12.2013.
  • In this scheme, the students who availed loan
    prior to 1.4.2009 and who paid the interest
    regularly, were in a disadvantageous position.
  • Since interest component was either nil or
    negligible, they did not get any benefit of the
    interest subsidy. Similarly the students who
    closed the education loan account before
    31.12.2013 were also not eligible to get interest
    subsidy.
  • Now this scheme is closed. Now the students
    cannot claim any interest subsidy under this
    scheme. We are writing this only for
    information.

5
For Loans granted / disbursed on or after
1.4.2009
  • Government of India (Ministry of HRD) provides
    100 interest subsidy for the eligible students
    (as given earlier) for all the loans disbursed on
    or after 1.4.2009 during the moratorium period.
  • If a loan has been sanctioned in 2007 for Rs.4
    lakhs, to be disbursed _at_ Rs. 1 lakh every year,
    the student is eligible for interest subsidy for
    the disbursements made in 2009 (if it is after
    1.4.2009) and 2010.
  • Moratorium period is the study period one year
    of six months after getting employment whichever
    is earlier.
  • Interest subsidy is available for either Under
    Graduation or Post Graduation. From the same
    family, brothers and sisters can avail the
    subsidy individually.
  • Students can avail the subsidy under only one
    scheme. Students who availed subsidy under the
    second scheme (loans prior to 1.4.2009) are not
    eligible for subsidy under the first scheme.

6
Problems faced by students
  • The students were required to submit the Income
    Certificate to the Bank to claim interest
    subsidy. Since the Banks did not intimate many
    of the students in the early years, many eligible
    students did not get interest subsidy.
  • It is the duty of the Banks to identify the
    eligible students and advise them to get the
    income certificate. Also, it is the duty of the
    Bank to submit the claim through the Nodal Bank
    portal to the Government of India within the time
    stipulated by the Government. Due to the fault
    of many of the Branches, claims were not
    submitted in the past claiming interest subsidy
    by the Banks.
  • Even the students who got subsidy, received only
    a small portion of the interest debited by the
    Bank. In many cases, Banks failed to submit the
    claim for few years. For example, banks might
    not have claimed for 2009-10, but claimed for
    other years. Also, they might have claimed for
    2009-10, 2010-11, but might not have claimed for
    other eligible years during the moratorium
    period.
  • ELTF has been taking up this issue through
    supporting MPs in the Parliament and with the
    Government for the past three years.

7
Government of India opens the portal as one time
measure
  • In order to resolve the confusion of the past
    disbursement of Interest Subsidy, the Government
    of India (MHRD).
  • Accordingly, all the pending claims, unclaimed
    interest subsidy for the period from 2009-10 to
    2013-14 can now be claimed by the Banks. Though
    the portal was supposed to have been opened on
    1st Sep 2015, due to some technical reasons, it
    is likely to be opened next week.

8
What students can do
  • If you have any education loan disbursement on or
    after 1.4.2009 (irrespective of your date of
    sanction say 2008 or 2007) and if you are
    eligible for interest subsidy as given in the
    early paras, then check your statement of account
    and also through the link given above for the
    subsidy claimed by the Bank.
  • Please compare the actual interest debited by the
    Bank during that Financial Year with the interest
    credited or not credited.
  • If the students find that either interest subsidy
    for that year has not been claimed or shortly
    credited, please write a letter giving the
    complete details and hand over to the Manager.
    Please request the Manager to claim the interest
    subsidy, when the portal opens.

9
  • ELTF will not follow up individual cases. If the
    students find any difficulty, they have to send
    complaint to Chairman of the Bank and to Reserve
    Bank of India. Please do not write to ELTF for
    individual issues. They can personally meet the
    Regional Managers and sort out the issues.
  • Source http//www.eltf.in/2015/09/clarifications
    -on-education-loan.html

10
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11
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m/avanse-education-loans/
Thank you !!!
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