Press Information Bureau

Government of India

Ministry of Finance

24-April-2012 17:41 IST

Education Loan to Minorities

India Banks’ Association (IBA) has circulated revised Model Educational Loan Scheme to its member banks. Banks can adopt the scheme with discretion to make changes as deemed fit. The scheme is for all students including students from minority communities.

Indian Nationals who have secured admission to professional/technical courses in India or abroad through an entrance test/merit based selection process are eligible for educational loans under the scheme.

Complaints received from various channels regarding non-sanction, non-disbursal, delay in sanction, disbursal of education loans are taken up with the concerned banks for immediate corrective measures.

The performance of Public Sector Banks (PSBs) under educational loan scheme is reviewed on an ongoing basis. The banks have been advised to ensure that the Educational Loan Scheme is implemented in letter and spirit and that loan applications are disposed of within the prescribed time limit.

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

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DSM/SS/Hb

Education loan scheme access for eligible students ensured with oversight on bank compliance and timely application disposal. The revised Educational Loan Scheme circulated by the India Banks' Association is available for adoption by member banks and covers all students, including minorities; it limits eligibility to Indian nationals admitted to professional or technical courses in India or abroad through entrance tests or merit selection. Banks may modify the model but must observe the scheme's core eligibility and scope. Complaints about non-sanction, non-disbursal or delays are being acted upon, and Public Sector Banks' implementation and timeliness in disposing loan applications are subject to review and advisories to ensure faithful execution.