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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November 19, 2011 at 9:16 pm
SIR ,my self pallavi i had taken education lone for M.pharm from SBI
my bank manger not allowing me intrest free lone .He said that bank not recived the copy of GR from GOVRMENT SO WANT CAN I DO???
November 23, 2011 at 7:11 am
hey, i m really interested in it, anybody can tell me , how to avail this scheme, i wanna take it for MBA and what will be the terms and conditions,
November 27, 2011 at 10:34 am
Respected
Sir/Madam
” I am doing my b.com final year and i apply entrance for IIPM New Delhi and i have been selected but since my high school mark is 44% and in interemediate it is 48% so sir my question is that am i eligible for a education loan my total course fee is Rs 580000 and my hostell fees is Rs 100000, please give me a way and a suggesation to get loan for my further education..
Thanking you..
santosh Singh.
November 27, 2011 at 7:26 pm
Hi,
I took Educational Loan for higher education (B.Tech) in August 2004 from Canara Bank, That time my Father’s income was less than 3.5 Lac per annum, I have heard that If student’s father income is less than 3.5 lac per annum, Bank will charge the interest after completing the education or after 5 Years, I just want confirm the Educational Loan Policy in year 2004.
My Bank is charging the interest rate from 1st year itself.
I will appreciate if you are responding me with copy of policy.
Thanks,
Shailendra Dwivedi
Location: Delhi
December 3, 2011 at 6:16 am
Sir,
I have taken loan from Canara Bank for my Engineering Studies in year 2008 around 1.6 lacs (3year course after diploma) and now i have completed my studies and my moratorium period is going to be over in next 15 days…and i am unemployed right now and only my father is able to repay the loan….I want to know that how much time i can wait to start repaying the loan…and if i do not start repaying sooner after moratorium period, is there will be any problem if i start repaying the loan even after the moratorium period i.e 2 or 3 months after moratorium period.
December 6, 2011 at 6:39 am
sir,
tell me when to go in bank for this process.
and is there any document
December 8, 2011 at 12:06 am
I want to become a charterded accountant for that purpose i want to take the interest free education loan plz give all information about that
December 13, 2011 at 10:49 pm
this scheme available for chartered accountant course
December 14, 2011 at 2:51 am
hi ,
My sis took edu loan on 2006 for studying bca from sbi bank.Till today v r paying interst.So it will b helful for us from this scheme,so that v can pay net amount instead of paying interest?
December 14, 2011 at 8:10 am
My. Father doing government job and his gross salary is six lack per annum but in hand salary under 4.5 lack per annum. I have taken. Loan for mba. In 2009 to 11 .I have taken loan from uco. Bank am I eligible subsidy . Please reply me.what is the rules of uco bank.tell. Me.
December 15, 2011 at 11:03 pm
hello sir, this is hariganesh. i am doing final yr b.com and i would like to pursue Pgdm in a business school. pls let me know till wat amount i can avail the 0% interest loan????..my families annual income is less than 4.5 lacks. pls do mention the time period till which i can avail the 0% interest??
December 16, 2011 at 7:04 pm
Sir,
Good morning i am Aditya bhardwaj pursuing b-tech in the 2010-2014 batch.i had taken education loan from sbi sitamarhi(bihar).my loan amount is 395000 and my family income is less than 450000 per annum can i get scheme of free education loan when i will in the mode of repayment after my completion of course or after getting job.
your faithfully
Aditya Bhardwaj
Delhi
December 19, 2011 at 10:42 pm
HELLO SIR
I AM ENGINEERIG STUDENT FROM COLLAGE NIIST BHOPAL .
I HAD APPLIED FOR EDUCATION LOAN TO SBI BRANCH MAIHAR DISTR. SATNA M.P.
AS MY FAMILY IPN IS LESS THEN 4.5 LACS .
CAUSE OF NOT HAVING ANY TYPE OF GUARANTOR.
THEY HAS REJECTED MY LOAN APPLICATION.
SO YOU HELP ME SIR.
I AM THRUSTED.
I HOPE YOU WILL GET ACTION AGAINST IT.
SHRIRAM PATHAK S\O SURESH PRASAD PATHAK
LATAGAON BLOCK MAIHAR
DISTR. SATNA M.P.
December 22, 2011 at 12:31 am
SIR. IAM VINOD DOING MBA . I WANT GET LOAN FROM THE CANARA BANK AND MY INCOME IS LESS THAN 100000.SO CAN I GET INTREST FREE ON LOAN?
December 24, 2011 at 2:40 am
HI FRIEND,I TAKE LOAN RS 3.50LACS FROM PUNJAB NATIONAL BANK.FOR FURTHER STUDIES IN SINGAPORE.NOW I AM IN SEYCHELLES.I WANT JUST ASK YOU ABOUT SUBSIDY OF LOAN REPAYMENT.HOW CAN I GET IT .WHAT MATTER I HAVE TO DO SO I CAN GET REBATE FROM THIS LOAN NOW I HAVE TO 87000 RSTO REPAY THIS LOAN .CAN U GIVE GUIDE LINE FOR THIS
THANKS
JIGNESH
December 25, 2011 at 12:28 am
hi..i want to know weathere i can get the above loan for study in russia….the institute is recognised by dci…
my dad annual income is less than 4.5 lacs….
thanks for your rpl in advanced..
December 25, 2011 at 1:40 am
am a 2011 pass out . i have the eligibility to have free of interest in education scheme. But still my bank manger(Candra bank) saying that they have got any circular about this. I want to know where i have to complaints about this and to whom.
December 28, 2011 at 6:40 am
I have taken education loan for my B pharm period 2007-2011. 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?
December 28, 2011 at 6:44 am
I have taken education loan for my B pharm period 2007-2011. My question is whether it comes under this scheme or not?
December 28, 2011 at 7:11 am
I have taken education loan for my B pharm period 2007-2011. My question is whether it comes under this scheme or not?
I have taken education loan for my B pharm period 2007-2011. My question is whether it comes under this scheme or not?
December 29, 2011 at 5:16 am
hello Sir,
I had taken a loan i 2005 for my engg..am i elligible for this scheme???
December 30, 2011 at 9:07 am
Hello sir,
I had taken the loan of 4.2 lakh in 2007 for my Engg…..am i elligible for this type of scheme?My family income(my father is suffring from blood cancer) is negligible,he is not working…… and yet now i didn’t placed in any company…….what can i do further for paying the whole amount……it is not possible for me…..i don’t know when i got the job??
December 31, 2011 at 12:08 am
sir,i have applied for the educational loan in IOB.i have the eligibility to have free of interest in education scheme.and my father asked many times in the bank for this.but they said that they will send a letter.though they send but the name of father written on the letter was wrong and it did not reached to us.It was returned to bank.after that they did not contact us through phone or another address which was given to them. now my bank manger(Indian Overseas bank) saying that date has passed.he will not do anything.Though,this is not our fault.we were unaware of this.the bank should the responsibility for it.but they are denying from it. I do not understand what should i do now.whether i have to complain about this and if yes then to whom.
December 31, 2011 at 12:23 am
If possible plzzzzzzzzzzzz reply soon.i have paid the interest per month.will i get this subsidy scheme for the last year of which i have paid the interest.will the bank return my interest.
January 1, 2012 at 10:10 pm
Hi Krishna ,
Thanks for valuable suggestions to all young pillars of India.
i have completed B.tech in the year of 2010 and for the 1st years i have paid the interest then due to financial problems i have not paid interest.
and now on 31-Dec-2011 SBI bank have waived off some amount like 85703 as mentioned in the comments like (unrealised intt r). without any intimation to us.
i have checked this in net banking so what could be it is.
am basically from farmer family is that a government have waived our interest.
please let me know what could be the meaning of (unrealised intt r). in banking terminology.
January 2, 2012 at 5:03 am
Dear Sir,
My name is Ankush. and I am studing at singapore, I have taken 4 lacks Sbi education loan for my study. so, Can you tell me, any sceme for Free education loan 2011. Or its possible If you have any Idea, so please, let me know on my email ID…I am waiting for your reply…
Thanking you,
Ankush
Singapore
January 2, 2012 at 10:21 am
Dear sir,
Pls reply me.
What should i do for that …..because SBI had given the notice period for submitting the edu loan.i didnt understand any thing for that….pls help me if possible.
January 4, 2012 at 8:55 am
i want to take education loan. iff it is free for student then only i will take.i am going B Tech course in CSE. my familly is so poor i cant pay the collage fee 7 lacs is too high so pls help me or give any good idea about this problem Because education can only developed the country.
January 8, 2012 at 9:24 am
sir
i am kailashchand sharma i am doing B.E i have completed my first year my family income is less then 1 lac i cant continue my B.E if i do not get loan…can i get loan interest free i need loan 4.5 lac.
Sir waiting for your responce….
January 9, 2012 at 6:22 am
sir
i am shankarsan tudu, i am doing B.E, i have taken Loan from SBI in the year 2011 for 3 year and my family back ground is poor.
annual income is less then 1 lak.But i dont know about free education loan.then my question is have i got that free aducation automatically or have i need to write an application to the sbi?
January 9, 2012 at 11:26 pm
Hi sir i had taken an educational loan during 2007 – 2010 for 3 years for MCA… till now i have paid my interest … my family income is less than Rs.4.5 lakhs per annum … will this scheme is applicable to me if so what about my interest … please help me sir …. i am waiting for your reply
January 12, 2012 at 2:33 pm
Dear sir,
I am shubham shrivastava, I took education Loan of amount 2 Lac in year (august2006) from SBI for my engineering course. As a first installment I got 50000 thousand from SBI in 2006 and respective 50000 thousand each year till completion of my course. and I also paid Interest amount for this loan amount till my last installment which I received in 2009. and at the time of sanction as re-payment bank fixed installment of 4500. which I have to give from July 2011 to july 2015 in 60 EMI.
after my graduation SBI give me one year for securing job but due to some unfavorable condition I did not get job in given period. but I got job in july 2011. My EMI should have started as per the bank given period but still bank did not contacted with me in any concern.
I need your suggestion to get benefit of this interest free education Loan because I paid interest for 3 and 1/2 year on my education loan. now i am planning to start re-payment as i have collected some amount by my saving. and second thing my father is a govt. employee and his annual gross salary is 3 lac.
How can I get benefit of this interest free education loan scheme.
Thanks & Regards
Shubham Shrivastava
January 13, 2012 at 10:30 pm
Dear sir
I have taken education loan of Rs.2.5 lks in the year 2005-2006 from SBI.From day one i have paid the interest for the same.still my loan is existing & I would like to know am I eligible to avail this interst free facility for my outstanding loan.Please suggest me as soon as possible.
Please let me know why the banks are charging more interest for education loan and the students/parents are struggling hard to pay the Interest amount.Is there any possiblity to reduce the interest rate on education loan.
January 17, 2012 at 2:46 am
Sir, I have applied Education loan in Dhanalakshmi bank. the duration of getting loan is too late. The respond from the bank is that it will take one and half year for sancation of loan. As my family is in poor condition that i applied education loan. What is the use of getting education loan?
January 17, 2012 at 5:04 am
Who told u that ,it takes one and half year to sanction an educational loan.it just takes not more than an month.u write to the headqurter of the bank.evry bank has a complaint form in their website.post ur problem there ,bank headquarter will take action.
January 17, 2012 at 5:05 am
http://www.dhanbank.com/contact/customer_care.aspx
write to the bank on contact us online options..
January 17, 2012 at 10:28 pm
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January 24, 2012 at 5:54 am
hello friends,
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January 29, 2012 at 10:26 pm
Dear Sir,
I took the loan from SBBJ. and even i ahve applied for the Loan waiever but the bank is saying that they have not received the money from the central governmentSo they cant give me the weiver .I ahve to wait for that.Please guide what should i do’
February 3, 2012 at 8:27 am
sir,
i m sbbj education loan holder frm session 2009-10. i m completly eligible for interest free loan as i m mbbs student of government medical college and my father incom is less than 4.5lackh. sir, bank manager told me dat time is out for dis facility. is it correct??? if no, then wat sud i do to change my education loan to interest free…pls rply
February 6, 2012 at 3:57 am
Hello,
I have taken education loan from union bank of india in 2009 for pursuing MCA .I want to know when this scheme will be in process. and for this what we have to do.
February 6, 2012 at 9:03 am
I had availed educational loan of Rs.3 lakhs for a AICTE approved course from Oriental Bank of India. My father’s annual income is less than Rs.4.00 lakhs. The bank is going on adding interest to my loan A/c from time to time.Can anyone tell me how to get this interest waiver officially & whom to approach ?
February 7, 2012 at 10:43 am
respected sir,
i am yadavendra now i’m persuing final year b.com 6th semester after completing this ug course i would like apply for ca course but i’m quite financially week my family annual income is less than 450000/- can i get intrest free loan to do further studies reply me sir i will be waiting for your answer.
February 13, 2012 at 2:24 am
hello sir i took loan
for technical education in 2009-2010,they are assigning the interest rate 6%,ur publishing like without interest loans…..what we will do……..
February 15, 2012 at 6:40 am
sir i hve taken education loan in month of june, 2011 . is this scheme valid for me(interest free loan)? i am studying in VIT university,vellore(T.N.).I want to know when this scheme will be comming for academics year 2011.i will be waiting for your answer.
thanx……….
February 17, 2012 at 2:39 am
sir i have 2 question? (VIBHROE JAIN)
1). i take Loan on 2007 for engeneearing and pass out in 2011 and still paying intrest and my family income is less then 4.5 lacs can i get the benefit ?
2) if get then for which i get benefit
February 19, 2012 at 2:17 am
Dear sir,
Iam pratap , I have E loan from andhra bank in2008-2010 for MBA.
total 70000 and interest 24000/-
I can’t pay this amount at this situation
Bank employees are coming to my home everyday for collecting money.
any chances to deduct interest rates
February 19, 2012 at 8:53 pm
Dear sir,
i have applied for the educational loan in PNB .i have the eligibility to have free of interest in education scheme.and my father asked many times in the bank for this.but they said that our bank did not received any notification from RBI regarding interest free loan. I do not understand what should i do now.whether i have to complain about this and if yes then to whom.
please make me aware and give guideline to complain against bank and his unfair and irresponsible job.
February 22, 2012 at 1:49 am
hi, my name is Murali ,i took loan Rs.2 L for complete my MBA but i paid and paying interest from starting onwards(2008-10).my question is :
1.when onwards have to pay interest to education loan?
2.interest rate will count fixed rate or floating rate na?
February 24, 2012 at 2:33 am
sir,
i am presently pursuing my education in a b.tech private college in bangalore whereas my native is in westbangal. due to some sudden financial problem my parents are presently not being able to pay the fees.i have attained 67.8% in my 1st sem university exam under vtu university.
am i eligible to apply for education loan.please let me know cause i seriously need it.
i have attained 72%in cls 12 and 82% in class 10.
thank you.