Today there is a significant 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.
Reap the benefits of Education Loans
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.
August 31, 2012 at 10:01 am
ketan i too have the same problem…..so if u find any solution pls reply me
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.
July 21, 2012 at 10:45 am
Dear Reeta,
After going through your message one thing that you should mention that when you have taken your loan because govt. allows interest free loan to those only whose has taken loan after march 2010. you have to give last year income certificate of your father to the bank & this amount should not be greater than 3 lacs & they will give you a form after some days.
this process has to be repeated for every year.
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
July 5, 2012 at 2:34 am
waiting for your reply . i got again one leter t
July 5, 2012 at 2:35 am
waiting for your reply .
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.
May 17, 2012 at 11:21 pm
Hi All,
This scheme is not actually operational, just like a Mirage in desert, either govt. is fooling us or our bank managers are corrupted, As I am trying to avail this scheme from a long time but my bank manager has only one response ” we don’t have such circular” If these circulars really passed by Govt. then… I request to HRD ministry please look into these matter or at least clear us.,
For a loan of 3L from state Bank of Hyderabad ,I am paying an Installment of Rs.10,000.
May 17, 2012 at 11:22 pm
Hi All,
This scheme is not actually operational, just like a Mirage in desert, either govt. is fooling us or our bank managers are corrupted, As I am trying to avail this scheme from a long time but my bank manager has only one response ” we don’t have such circular” If these circulars really passed by Govt. then… I request to HRD ministry please look into these matter or at least clear us.,
For a loan of 3L from state Bank of Hyderabad, june’09 ,I am paying an Installment of Rs.10,000.
September 17, 2012 at 8:17 pm
Circulars available. This scheme is operational I got near about 30 thousand rupees and credited to my loan account. This amount is disbursed up to Sep 2010. My loan is in sbh. If you are staying Hyderabad please contact zonal office for details or else you can call me 9866565178
June 16, 2012 at 1:27 am
sir i have taken a education loan from IOB for my pg in the year 2006 and 2nd installment in 2007 for 2nd year .i heard that the RBI has done some concession but i dont know about that in detail .i have repaid my loan with some interest pending .so i dont know what to do ?please help me with the details
June 16, 2012 at 6:35 pm
Hello Abishek,
This is not applicable for the Year 2006. You can not claim any benefits on this policy.
Thanks,
Krishna
June 18, 2012 at 12:52 am
I took nearby 2.60 lak education loan in 2005 .As my earning is not so good still and i belongs to a below middle class family. I want to know that how can i make my education loan to be interest free.
June 18, 2012 at 1:30 am
Hello Jannya,
This scheme is applicable from the year 2009-10. You can not claim for your loans.
Thanks,
Krishna
September 17, 2012 at 8:20 pm
What Krishna said is absolutely wrong .It is applicable to all education loans sanctione prior to 2009. But for prior loans intrest subsidy will be given from 2009 only
June 25, 2012 at 11:56 am
Hi krishna,
My friend got education loan in canara bank(2006-2010). They withdraw interest for the year 2010. Is that same for all bank?, when i talk to Indian overseas bank manager, regarding this. He said, this scheme is only for (2009-2010). How my friend got this scheme in canara bank? why not in IOB?
June 26, 2012 at 8:36 am
Hello Yuvaraj,
This scheme started in 2009. But, there is no news that it is applicable only for 2009-10. It is available from the year 2009.
Thanks,
Krishna
July 19, 2012 at 2:05 am
sir,
I am now completed 1st year MCA, I didn’t take any loan for 1st year.My family income is less than 3.5 lakh.My question is can i apply free interest scheme education loan for my 2nd(2012-2013) and 3rd year education.I joined this course via management quota.It’s applicable for management quota student? or not? please help me….
Thank you
June 27, 2012 at 6:33 am
Actually i have taken a loan for 2.8 lakhs in 2011 and i gave the letter from the VAO that the family income is low to the bank for interest subsidy for the 1st year.should i give another letter from VAO for interest subsidy this year also.pls clarify me.
July 2, 2012 at 9:11 pm
Sir I have taken a loan from the year(2007-2012) for the award of (MS(Software Engineering) 5 yr Integrated course) from Indian bank villupuram, Tamilnadu. I have paid 40,000 interest in march 2010…My sanctioned amount is 3,58,000…So yesterday i have checked my account..My name is under subsidy scheme and they are just adding interest to my account and at the end of the year, the government is repaying only some percentage of my actual interest..Now my account balance is 4,66,000 i.e. interest exceeds 1 lakhs.. If government is paying interest then how could it add 1,00,000 interest on my account…Please give me the details about it…Thank you sir..
July 2, 2012 at 9:14 pm
Sir I have taken a loan from the year(2007-2012) for the award of (MS(Software Engineering) 5 yr Integrated course) from Indian bank villupuram, Tamilnadu.And i have applied for the loan subsidy scheme. I have paid 40,000 interest in march 2010…My sanctioned amount is 3,58,000…So yesterday i have checked my account..My name is under subsidy scheme and they are just adding interest to my account and at the end of the year, the government is repaying only some percentage of my actual interest..Now my account balance is 4,66,000 i.e. interest exceeds 1 lakhs.. If government is paying interest from 2009 then how could it add 1,00,000 interest on my account…Please give me the details about it…Thank you sir..
July 3, 2012 at 5:31 pm
Hello Dilipan Prabakar,
These details can be asked to the bank. I can not answer how the interest is accumulated that much. Please talk to the bank and ask for more details.
Thanks,
Krishna
July 5, 2012 at 7:30 am
before few years central finance minister mr.p.chidambaram has announced interest free educational loan in all medias flash news (especially sun tv). but i am keep on paying the interest. that too for rs.101600 loan amount they are asking rs.16860 as interest this academic year(2012-2013) in oriental bank of commerce.they are putting interest for the interest..
then for what mr.chidambaram said like that. is congress cheating people?
at present for educational loan, we need to pay interest or not?
July 5, 2012 at 7:33 am
before few years central finance minister mr.p.chidambaram has announced interest free educational loan in all medias flash news (especially sun tv). but i am keep on paying the interest. that too for rs.101600 loan amount they are asking rs.16860 as interest this academic year(2012-2013) in oriental bank of commerce.they are putting interest for the interest..
but the interest is seems to be less insyndicate bank ..
then for what mr.chidambaram said like that. is congress cheating people?
at present for educational loan, we need to pay interest or not?
July 5, 2012 at 7:33 am
before few years central finance minister mr.p.chidambaram has announced interest free educational loan in all medias flash news (especially sun tv). but i am keep on paying the interest. that too for rs.101600 loan amount they are asking rs.16860 as interest this academic year(2012-2013) in oriental bank of commerce.they are putting interest for the interest..
but the interest is seems to be less in syndicate bank ..
then for what mr.chidambaram said like that. is congress cheating people?
at present for educational loan, we need to pay interest or not?
July 10, 2012 at 9:41 am
Hi All,
I am from Kerala. I came to know recently about the scholarship scheme . This sceme it is called as Vidhya scheme and through the scheme eligible students are given loans without interest. It does nt mean we will have to pay no interest, but we will not have to pay interest for the period of morotorium. And we will have to pay interest nd principle after we attain job or the agreed period but interest will be only for such period.
For this but ther are some criteria to be filfilled, some of them like:
a) it will be available only for meritorious students (means students who attained admission through merit)
b) max loan amount 10lakhs
if these criterias are set, you are eligible for educational loans under vidhya scheme. And ther is strong instructions from govt to the banks not to reject the application of eligible students. But i dont know wether it applies only in kerala, but i feel it is there throughout India, pls approach a bank manager for details.
Regards
July 16, 2012 at 11:00 am
Hello Sir,
I have been sanctioned educational loan of Rs 3.76 lakhs in Sept 2011 to pursue M.Tech from BITS. I have shown my SBI branch manager the GR regarding interest free education loan many times, but he is still not responding. He said that we yet not got any instructions from government. How do I avail this scheme? I am really in need of this scheme. I have submitted all necessary documents and my family income is below 4.5 LPA. So please do reply.
July 20, 2012 at 11:03 am
Hello Krishna sir,GM,
I had taken lone for my Engg. degree in the year 2009, for my 3year degree(after diploma) course from ‘SOLAPUR Co-Operative bank,Kallam branch.’ Now i completed engg. & got job. When i went to ask Bank Manager about Interest free education lone, he refused to accept by saying,”We are not geting any GR related to this,so we will not allow you to pay lone amount without interest.” Now i want to know that is this scheme is applicable to this bank or not? Plz give me reply so as i can take further action on them.
Thanks & Regards Nakul
July 20, 2012 at 8:48 pm
Hello Sir,
I had taken loan from Canara bank in 2003 and completed MCA course in 2006.I started repaying it in the year 2008, but couldn’t continue after 8 months since i have to leave the job due to health issues.At present I am married and jobless too.Due to which I am not able to repay the loan.I would like to know Sir if there is any way to waive off the interest so far and just pay the principal amount.
July 29, 2012 at 9:27 pm
i have taken education loan for my daughter in Indian Bank Palavakkam Branch to study B.Tech Information Technology for the academic year 2009-2010 of about Rs3,50,000/- . I am an agriculturist my annual income is about Rs1,80,000/- I have submitted the proof of income from the revenue authorities also to the bank. Kindly clarify whether i am eligible for the Interest subsidy or waiver .
July 30, 2012 at 10:54 pm
from where i take intrest free education loan and please give me details of this education loan form
August 3, 2012 at 2:00 pm
sir i hav taken admission in civil engineering ug dagree i want to know more about educational loan free of intrest
August 5, 2012 at 8:26 am
DEAR SIR…
I WAS TAKEN EDU. LOAN FROM VIDHARBHA KSHETRIY GRAMIN BANK IN 2011 FOR ACADAMIC YEAR 2011-2013 FOR MY POST GRADUATE STUDY IN MASTER OF PHARMACY NEARLY 260000 RS APPROVED FROM WHICH HALF OF AMOUNT I WAS TAKEN AND SUBMITT IN COLLEGE BUT ON THIS PRINCIPAL AMOUNT THEY ARE TAKEN INTEREST AND MY FAMILY INCOME IS NEARLY 11OOOO RS. WHEN I TOLD THEM ABT THIS GR THEN THEY TOLD ME THIS GR FOR 2010 WHEN WE DELIVERED NEW THEN WE WILL PAY BACK IN YOUR ACCOUNT. SO PLZ HELP ME REGARDING THIS… AND IF POSSIBLE SEND ME THE COPY OF THIS REGULATION.
August 11, 2012 at 4:08 pm
Hi sir/madam.
I have taken education loan prior to Academic year 2009-2010 i.e.from 2005-2009 ant paid the interest as well as some principle amount. can i take the benefit of this scheme (Subsidy on paid interest).
Please help me.
August 12, 2012 at 12:17 pm
Hello Sir, I hav taken edu. loan for 2008-10 session, whether my interest will be levied or not.My father income isn less than 2 lakhs.
August 17, 2012 at 2:30 pm
I had taken a education loan from vijaya bank IN THE YEAR 2007-09 FOR RS. 1.2 LAKHS . now its 1.9 lacs INCLUDING INTEREST i had replayed RS 90,000/- in the year of 2011-12 . now i am unemployed and married women and also i had a girl kid . STILL I AM TRYING for SUITABLE JOB .my father and is a former annal income less than 1 lacs., its a very big burden for my family. please any help me related to that
August 17, 2012 at 6:56 pm
Sir,
I had taken the education loan from vijaya Bank,kizhakkancherry kerala in the year 2007- 2009 for Rs 80000 in the year 2011-2012 interest raised to 1,40000.Bank employees harras to my family.for repayment .60000 interest amonut ,Loan interest should be taken after completing the course ,but the bank taken 12.5% interest,pls give the details on the loan .interst and other details
August 17, 2012 at 6:56 pm
Sir,
I had taken the education loan from vijaya Bank,kizhakkancherry kerala in the year 2007- 2009 for Rs 80000 in the year 2011-2012 interest raised to 1,40000.Bank employees harras to my family.for repayment .60000 interest amonut ,Loan interest should be taken after completing the course ,but the bank taken 12.5% interest,pls give the details on the loan .interst and other details
Regards
noushu
August 28, 2012 at 3:34 pm
Sir,
I have already registered on canara bank web site for education loan for my son-Mst. Krishnan Sooraj Radhakrishnan. I have met with Mr. A.K. Verma-Chief Manager, Canara Bank, Nasik Main Branch, Nasik. He was refused to discuss the above subject matter. He told me that, no any meaning for online registration.
Please help me to approve the loan for my child higher education purpose.
August 29, 2012 at 3:03 pm
i already have education loan applied for education loan subsidy but still i did not got any benefit…
September 3, 2012 at 11:51 am
I took nearby 1.5 lak education loan from 2006 to 2009 .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).
September 7, 2012 at 2:31 pm
Honourable Prime Minister announced the rebate on E/L on Red fortin 2009 it was good news.How long it has taken .I submitted my application for refund in sbi still it has not been credited to E/Loan account .sbi is still deducting the Loan installment on current rates. this is India how long they take to implement the scheme.Now the nodle agency to credit the amount is Canara Bank.Alas….
September 13, 2012 at 5:37 pm
Sir i hae got my education loan in 2005 of about 1.5lac i have paid interest of about 75000 but still i am yet to pay about same amount i am not earning good at this stage i am struggling a lot because of this, help me to find te solution for it atleast to get the interest wavier
September 25, 2012 at 1:29 pm
Loans on which interest the first year he seems to think Habbad
plz tell me my e mail add
January 23, 2013 at 6:57 pm
I have taken loan from SBI during 2008-2009. 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,when i asked the manage he told me he did know about this matter any think, he did not give any information about this. if government is giving interest benefit then why they are adding in my loan amount. Please suggest me regarding this.
March 18, 2013 at 5:30 pm
Sir,
Ihave taken education loan ( 8 Lakhs ) from SBI for my Post Graduate studies in UK in the year 2006. 2008 on wards started to repaying the amount. Presently my a/c balance shows 1.5 lakhs. As per new government decesion am I eligible for free of interest. now they are charging me @ 14.5%. Kindly advise My annual income is less than 3 lakh
thanks.
March 21, 2013 at 5:57 pm
This is applicable for studies inside India.
March 21, 2013 at 1:42 pm
HEllo all frnds
I got educatation loan 2010 for MBA
AFTER LONG WAITING AND CALLING EVERY TIME TO BANK AS WELL AS REGIONAL BANK.
EVENTUALLY I GOT BENEFITS FOR FREE INTEREST SUBSIDY ONLY FOR 2 YEARS.
IT MEANS WE DIDNT PAY INTEREST DURING OUR STUDY TIME.
MY STUDY 2 YEARS SO I GOT SUBSIDY FOR 2 YEARS.
ANY ONE CAN E MAIL FOR ANY HELP (ikbalsida@GMAIL.com)
THANKS
SBI