Canara Bank has opened a portal to facilitate interest subsidy claims on education loans for the financial year 2017-18. The portal would be open till September 28.
The Central Sector Interest Subsidy (CSIS) scheme was implemented by the Union Ministry of Human Resource Development. Under the scheme, full interest subsidy is provided for the moratorium period (course period plus one year) on education loans of up to ₹7.5 lakh, taken from scheduled banks. The benefits are applicable to students from economically weaker sections (EWS) with parental income of up to ₹4.5 lakh per annum.
Tamil Nadu is one of the top States for availing education loans. Education loans of around ₹1,932.82 crore were disbursed in 2017-18, compared to ₹1,832.24 crore in 2016-17, according to data from the Reserve Bank of India.
According to K. Srinivasan, Convenor, Education Loan Task Force (ELTF), as per guidelines, branch managers had to identify eligible student borrowers and submit the claim for the interest subsidy for FY 2017-18 through the Canara Bank’s portal.
However, many branch managers did not claim the subsidy for eligible students, he pointed out. Mr. Srinivasan suggested that eligible students submit a letter to the branch managers, requesting them to claim the interest subsidy from the government for the previous financial year. “Though it is the responsibility of the branch managers to submit the claim, in their own interest, students are advised to ensure that the branches submit the claim within the stipulated date,” he added.
ELTF has advised the aggrieved students to file a petition with the District Consumer Forum, claiming damages and compensation from banks. According to official data, 25,17,038 students have benefited from the CSIS scheme, which was launched in 2009 by the Ministry of Human Resource Development.
