Press Information Bureau

Government of India

Ministry of Finance

05-September-2012 18:16 IST

Complaints Regarding Sanction of Education Loan

Public Sector Banks received 5199 complaints in education loans, including those of delay in sanction of educational loans, during 2011-12, out of which 5190 were disposed of and 9 were pending. Complaints regarding educational loans, as and when received by the concerned banks, are taken up for corrective measures.

Model Educational Loan Scheme of Indian Banks’ Association (IBA) provides that applications for educational loans received by the banks are disposed off, in the normal course, within a period of 15 days to 1 month.

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

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DSM/RS/Hb

Education loan sanction timelines: model scheme requires prompt disposal and banks reported corrective action on complaints. Public Sector Banks reported receipt of 5,199 education-loan complaints in 2011-12, disposing of 5,190 and leaving nine pending; banks take up complaints for corrective measures upon receipt. The Indian Banks' Association Model Educational Loan Scheme directs that educational loan applications be disposed of, in the normal course, within fifteen days to one month, establishing an expected processing timeline for sanction of education loans.