Cells in banks to address education loan grievances

In response to suggestions from students and parents, Union Minister of State for Finance and Corporate Affairs Arjun Ram Meghwal has agreed to set up grievance redress mechanism at nationalised banks to address issues relating to education loan.

Mr. Meghwal, who interacted with representatives from nearly 40 banks and aggrieved parents and students, said on an experimental basis, the government would set up grievance redress cells at corporate headquarters and would nominate a nodal officer that people could approach for help for education loans.

Some of the debtors and non-governmental organisations told the Minister that often in rural areas bank managers were not kept updated on the revised guidelines and it affected students seeking loans. Mr. Meghwal said awareness programmes would be held for bankers and they would be advised to issue circulars periodically apprising them of the rules.

He said it was the responsibility of debtors to repay loans. “If you repay the dues, your own family would benefit in a few years when you look for loans. Modiji (Prime Minister) wants to give loans but you should have the capacity to repay loans. We want empowered citizens,” he said.

Praise for IOB

The Minister appreciated the efforts of the Indian Overseas Bank in providing training to educated unemployed debtors to enable them find employment.

Mr. Meghwal said the government was planning to introduce a ₹10 coin and a stamp to commemorate Ramanuja during his centenary celebrations.

According to R. Subramaniakumar, executive director of the Indian Overseas Bank, only 5% of the people had grievances while dealing with banks for education loans. Tamil Nadu had disbursed around 9.09 lakh loans amounting to ₹17,862.85 crore, unlike Kerala, which had disbursed only ₹9,816 crore, he pointed out.

The event was organised by Prime Point Foundation, which had been assisting people with information on education loans for over a decade.