Press Information Bureau

Government of India

Ministry of Finance

06-September-2011 17:59 IST

Banks Advised to Ensure that the Educational Loan Scheme is Implemented in Letter and Spirit ; Education Loans Worth Rs. 15,207 Crore Sanctioned in 2010-11

The Indian Banks’ Association (IBA) has circulated a revised Model Educational Loan Scheme to its member banks with broad operational guidelines. Banks can adopt the scheme with changes as may be considered necessary.

The Banks have been advised to ensure that the Educational Loans Scheme is implemented in letter and spirit. The performance of Public Sector Banks under Educational Loans Scheme is reviewed on an ongoing basis.

As per information furnished by IBA, the Public Sector Banks had sanctioned Rs. 15,207 crore education loans in 5.42 lakh accounts during the year ended 31st March, 2011. The amount of the disbursement was Rs. 11,200 crore in 8.11 lakh accounts during the year.

Complaints are generally received regarding non sanction/ disbursal, delay in sanction/ disbursal etc. They are immediately taken up with the concerned banks for remedial action. For the year ended June 2011, 99 complaints relating to grant of educational loans against different banks were received by the Reserve Bank of India.

This information was given by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question raised in Rajya Sabha today.

DSM/SS/SL

Educational loan scheme implementation urged; banks must follow revised model guidelines and address loan complaints promptly. The Government and banking guidance stress implementation of the Educational Loan Scheme under a revised IBA Model Scheme that banks may adopt with modifications, with ongoing review of public sector banks' performance. The release notes substantial sanctions and disbursements by public sector banks, and that complaints about non-sanction, non-disbursal and delays are referred to banks for remedial action and tracked by the Reserve Bank.