A district consumer commission directed Andhra Bank to pay ₹1.14 lakh, the interest subsidy on an education loan, and ₹20,000 as compensation to a complainant. The commission held that the bank was deficient in service for not having arranged the interest subsidy amount to the complainant.
The District Consumer Disputes Redressal Commission – I Hyderabad was dealing with a complaint filed by Nagendra Naren, a resident of Miyapur. The opposite parties were the Assistant General Manager, Andhra Bank, SR Nagar branch, and the Managing Director and Chief Executive Officer, Andhra Bank, Saifabad.
The complainant stated that he had availed an education loan of ₹2.20 lakh to pursue B Tech from the Andhra Bank’s SR Nagar branch in 2009. Meanwhile, the Centre had announced an interest waiver scheme on education loans obtained by those with a family income of ₹4.5 lakh per annum. The complainant had applied for this and requested the bank to upload the claim. He also stated that the designated nodal bank for this scheme was Canara Bank.
He stated that despite furnishing all required documents like income certificate, Andhra Bank did not upload the claim for interest subsidy. He also stated that as per stipulations, it was the responsibility of the loan approving bank to upload the claim.
For their part, the opposite parties denied the allegations. They stated that after submission of the claim, the nodal bank, Canara Bank, was responsible to explain ‘what has been admitted by it for getting the interest subsidy amount from the authority concerned’. It attributed deficiency of service by Canara Bank.
Taking all evidence and arguments placed on record into consideration, the commission stated, “Based on the admission of the opposite party, in its written version, as to deficiency in service in not arranging the interest subsidy amount on the education loan availed by the complainant and stating that it is the duty of the Nodal Bank, it is not acceptable.”
It also stated that when the claim was uploaded and cleared by the Ombudsman, it was the responsibility of the opposite parties and not Canara Bank, to pursue the matter till the claim was settled.
Apart from ordering paying of the interest subsidy amount and compensation, costs of ₹10,000 were also imposed.
