Banks have come under criticism for “violating” the norms prescribed for education loans disbursed to students under the Government of India’s Central Scheme for Interest Subsidy (CSIS).
As per the guidelines of the scheme, the Government will take over the interest burden on education loans given to economically weaker sections for the period of study plus one more year after that and students will not pay the interest component.
Following complaints received from students that banks have been pressurising them to pay the interest immediately, Namakkal-based Education Loan Awareness Movement launched a campaign to force the banks follow government rules and the objectives with which this scheme was announced.
Speaking to media persons here on Saturday, the movement’s founder and organiser M.Rajkumar accused that several banks were playing with the lives of students who availed educational loans believing that the government would bear the interest amount.
“What the banks are doing is complete violation of rules. It is shocking that they are deviating from the Government of India scheme and interest too is being charged heavily,” he accused.
Mr.Rajkumar said he was pursuing the issue in the Madurai Bench of Madras High Court.
“Even for small amount educational loans, some banks are demanding collateral security. We are creating public awareness at various places through our movement about the objectives and benefits of CSIS. Banks have to obey the government rules,” he said.
Mr. Rajkumar said that his movement is ready to support students’ cause and they can contact him on mobile number 94421-64601.
