Today there is a significient announcement related to the education loans by the government. Financially poor students can take the education loans without paying the interest till moratorium period. Here moratorium period is 6 months after completing the course or when the student get the job, Which ever is happening first will be trigger the loan repayment process. The existing system allows students to pay only the interest till the repayment of loan starts.
Update:
This scheme is become operational. And it is effective from 2009-10.
The new announcement by center says Students from families with earning less than Rs 4.5 lakh per annum will be eligible for this scheme. Only those enrolled in recognized professional courses can avail of this scheme. This would include education institutes established by Act of Parliament, institutes recognized by relevant statutory bodies, IIMs and other institutions set up by the central government. The actual interest will be paid by the government to the bankers. It is really good initiative by the govt. to help the poor students.
The scheme will be applicable from the academic year 2009-2010. The implementation and monitoring of the scheme will be finalized in consultation with Canara Bank. The prime minister had announced the scheme in his Independence Day address.
Top 5 Points to consider for Interest Free Education Loans
- This subsidy loans will be available for all the technical and professional courses in India. If you are doing any courses outside Indian, this scheme will not be applicable.
- Courses done after class XII in institutions established by Acts of Parliament, recognized by statutory bodies, IIMs and other central government institutions.
- The existing education loans will be linked to this scheme.
- This scheme will be available only once for a student. For example if you have used this scheme for under graduate studies, then you cannot apply again for the post graduate. But, it is applicable if you are doing the combined UG and PG courses.
- This scheme won’t be available if you discontinue your course in the middle except if there is any medical problems.
Update:
This scheme is become operational. And it is effective from 2009-10.
Summary
Will this scheme really benefitted by the poor students? Please post your thoughts. As every one aware, few months ago the same govt. announced Rs.60000 crore agriculture loans will be canceled to help the poor farmers. What really happened is only rich farmer benefited by the scheme and it is one of the worst move by the govt. Announcing various schemes are not important, they way how they are implementing the plans and how far it is reaching the needy is to be considered. Let’s wait and watch.
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February 25, 2012 at 3:45 am
I have taken loan from SBI during 2009-2010. My family income is less then 3.5 lack. i have submitted all the documents regarding this. Now i want to repay my loan. but when i went to bank and checked my loan account statement i found that they are adding interest on principle amount. if government is giving interest benefit then why they are adding in my loan amount. Please suggest me regarding this.
February 26, 2012 at 10:17 am
Sir
I took my educational loan on August’2008.It was of almost 2.28 lacs from Allahabad bank.I completed MSc Biotechnology.When i asked my bank manager regarding this scheme he used to tell me that this scheme is not functioning and they have not got any notification.I have paid my interest up to July ‘ 2011(july 10-july 2011 is my moratorium period).So what should i do.Shall i get back my money paid to bank allready or not.Or I am not eligible for the scheme.
February 27, 2012 at 9:03 am
Dear Sir,
Almost all the banks in Jammu are not aware about interest free educational loan Scheme. Perhaps, the bosses, if they are aware, do not want to pass on the information to their juniors. There is something lacking. Will RBI will do something? Regards,
February 28, 2012 at 6:13 am
I WANT LOAN
March 15, 2012 at 4:41 am
hi my name is reeta saini i have take a education loan of Rs 2,00,000/- approx. as i am a girl and i want to know that how my education loan will be interest free my bank is charging 14.50% of interest. please give me suggestion.
i will be thankful to you. As my earning is not so good still and i belongs to a middle class family.
March 16, 2012 at 4:15 am
SIR,
I HAVE TAKEN EDUCATION LOAN FROM CANARA BANK IN THE YEAR 2007 FOR RS. 1.4 LAKHS .NOW THE AMOUNT BECOME 2.7 INCLUDING INTEREST EVENTHOUGH I HAVE REMITTED MORE THAN 75,000 SO FAR. THEY ARE ALSO CHARGING PENAL INTEREST. IS THERE ANY PROVISION TO WAIVE THE INTEREST FOR THE FIRST FIVE YEARS. STILL I AM TRYING SUITABLE JOB . CAN YOU HELP ME IN THIS REGARDS WITH SUITABLE ADVICE FOR WAIVE THE INTEREST.
GOKUL
March 19, 2012 at 5:50 am
SIR,
I HAVE TAKEN EDUCATION LOAN FROM CANARA BANK DIDAGA ,CHANNARAYAPATNA TALUK, HASSAN DISTRICT IN THE YEAR 2007. I TOOK RS. 1.3 LAKHS LOAN NOW THE AMOUNT BECOME 2.5 LAKHS INCLUDING INTEREST AND I HAVE NOT PAID ANY INTEREST SO FAR. THEY ARE ALSO CHARGING PENAL INTEREST.AND I DID MBA IN THE YEAR 2007-2009. IS THERE ANY PROVISION TO WAIVE THE INTEREST FOR THE FIRST FIVE YEARS MY FATHER WAS A AGRICULTURIST AND HE PASSED AWAY 2.5 YEARS BACK AND IAM A GIRL I GOT MARRIED AND I AM NOT WORKING ANYWHERE .I CANT PAY THE INTEREST CAN I GET EXEMPTION FROM INTEREST OR INTEREST FREE EDUCATION LOAN SCHEME IS APPLICABLE TO ME. CAN YOU HELP ME IN THIS REGARDS WITH SUITABLE ADVICE FOR WAIVE THE INTEREST.
April 2, 2012 at 10:57 am
sir,
I have taken education loan for my B tech period 2008-2012. My question is whether it comes under this scheme or not? Is this new announcement by govt. only benefits to those people of 2009 onwards?i am in my last sem now.only fee of last sem is to be taken.i have taken loan of 4 lacs from union bank of india.they are adding the interests.it has become a burden.
please help me out sir…
i will wait for your response
April 2, 2012 at 11:02 am
I have taken education loan for my B tech period 2008-2012. My question is whether it comes under this scheme or not? Is this new announcement by govt. only benefits to those people of 2009 onwards?
April 9, 2012 at 11:11 pm
I have taken loan from Vijaya Bank in the 2010. My family income is less then 3.5 lack. i have submitted all the documents regarding this. Now i want to repay my loan. but when i went to bank and checked my loan account statement i found that they are adding interest on principle amount. and also sent notice to me. they were forcing to pay the interest. if government is giving interest benefit then why they are adding in my loan amount. i am still facing unemployment problem. Please suggest me regarding this what to answer them.
May 1, 2012 at 6:29 am
hi..i got my educational loan in 2009 and its announced tat v need not to pay interest right..!!but in tat bank where i got loan they keep on demanding for interest and then only they can give the remaining money for further studies like tat..now what shall i do???
May 3, 2012 at 1:45 am
Hi i got my education loan 2008 in Indian bank.. my doubt is
1. while studying peroid also we have to pay the interest?.i paid.
2. I’m B.SCc graduate under Anna University, for this course have to pay interest ah?
May 4, 2012 at 3:18 am
I took nearby 1 lak education loan in 2003 .As my earning is not so good still and i belongs to a below middle class family. I want to know that how my education loan will be interest free(/loan amount waive/loan write off scheme).
May 9, 2012 at 6:44 am
Hello Sir/Madam, My father took education loan of amount 1.5 lakhs and 2 lakhs from central bank, for the first one guarantee was provided by my dad’s friend and for the second one guarantee plus security(own house) was provided and they are charging must interest also. Please suggest me how to get back our house papers and make it interest free as rule was passed by RBI long back that no security will be required for loan up to 4 lakhs.
Because of all these problems am not able to take an education loan for my higher studies even after getting getting offer from world’s top 30 universities
May 10, 2012 at 1:54 am
Sir,
I have taken loan from SBI during 2009-2010. My family income is less then 3.5 lack. i have submitted all the documents regarding this. Now i want to repay my loan. but when i went to bank and checked my loan account statement i found that they are adding interest on principle amount. if government is giving interest benefit then why they are adding in my loan amount. Please suggest me regarding this.
May 12, 2012 at 6:53 am
SIR,
I HAVE TAKEN EDUCATION LOAN FROM vijaya bank IN THE YEAR 2008 FOR RS. 3.6 LAKHS .NOW THE AMOUNT BECOME 3.8 lacs INCLUDING INTEREST EVEN THOUGH I HAVE REMITTED MORE THAN 1,98,000/- SO FAR. THEY ARE ALSO CHARGING PENAL INTEREST. IS THERE ANY PROVISION TO WAIVE THE INTEREST FOR THE FIRST FIVE YEARS.now i am unemployed engineer. STILL I AM TRYING for SUITABLE JOB .my father have a annum income of 3.5 lacs.,he paid the monthly instalment of 8000/-.Its a very big burden for my family. CAN YOU HELP ME IN THIS REGARDS WITH SUITABLE ADVICE FOR WAIVE THE INTEREST.