Sbi education loan

Querist : Anonymous (Querist) 13 April 2020 This query is : Resolved
I got education loan(6.6lakhs) for studying ms based on the pardesh padho scheme (abroad study) where subsidies of interest during the study well be relaxed(I am minority student eligible for 100℅ relaxation). But bank didn't applied for the subsidies in time and now claiming for whole inresest from me. What to do please suggest.

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Rajendra K Goyal (Expert) 13 April 2020
Interest subsidy for moratorium period is only allowed in case of such loans. Have you started repayment of your principal and interest after moratorium.

In this respect following para of the scheme is important:

FAQ: Is Interest Subsidy guaranteed for all eligible applicants?

Answer: No, interest subsidy is not guaranteed for all eligible applicants. However, it would be Ministry’s endeavor to provide interest subsidy to all eligible applicants to the extent possible. As per provision of scheme, total number of students to be selected in a year is 400. State-wise/Community-wise quota is fixed as per Annexure.

Rajendra K Goyal (Expert) 13 April 2020
Please confirm whether subsidy on your name was sanctioned / approved / finalised by Government authorities.

Generally subsidy is claimed by Bank from Government at Bank level, non claiming on being eligible is difficult.

Whether you fulfilled conditions of interest subsidy from Government?

CONDITIONS FOR INTEREST SUBSIDY

i) The Scheme is applicable for higher studies abroad. The interest Subsidy shall be linked with the existing Educational Loan Scheme of Indian Banks’ Association (IBA) and restricted to students enrolled for course at Masters, M.Phil and Ph.D levels given at para 14.

ii) The interest subsidy under the scheme shall be available to the eligible students only once, either for Masters, M.Phil or Ph.D levels. Interest subsidy shall not be available to those students who either discontinued the course mid- stream, due to any reason, or those who are expelled from the institutions on disciplinary or academic grounds.

iii) If it is found that a student has violated any condition of the scheme, the subsidy will be discontinued forthwith.

iv) If a student is found to have obtained the subsidy by false statement / documents/certificates, the subsidy will be withdrawn/cancelled forthwith and amount of the subsidy paid already, shall be recovered with penal interest, apart from taking criminal action as per law.

v) The students obtaining benefits under this Scheme shall not be given the interest subsidy if he gives up Indian citizenship during the tenure of the period.

vi) The designated bank will maintain a separate account and records relating to the funds received from the ministry and will submit quarterly report to the Ministry. The account and records will be open for inspection/audit by the officers of the Ministry, or any other agency designated by the Ministry or C & AG.

vii) Any further fund towards payment of interest subsidy will be released to the designated Bank only after receiving the utilization certificate for the earlier releases as per provisions of GFR.

viii) The designated Bank shall place all relevant details of financial and physical achievements on its website and implement the scheme as per the Memorandum of Understanding (MoU) to be signed between the designated Bank and Ministry of Minority Affairs.

ix) The designated Bank will ensure that the students from the minority communities, who may also belong to SC/ST/OBC category, do not avail interest subsidy from other schemes of Central Government/State Government for the same purpose.

x) The designated Bank will lay down the detailed procedure for processing and sanctioning of interest subsidy to eligible students in consultation with Ministry of Minority Affairs.

xi) State/UT-wise and Community-wise quota, based on Census, 2011, has been fixed as given in the Annexure-I. To the extent possible, the benefit of Interest Subsidy will be given to notified minority communities as per the quota fixed. In case of non-availability of students in a State or community, seats can be transferred to other States or community.

xii) The scheme will be evaluated at regular intervals by the Ministry or any other agency designated by the Ministry.

xiii) The terms and conditions of the scheme can be changed at any time at the discretion of Ministry of Minority Affairs to improve implementation of the scheme in more transparent and effective way.

RATE OF INTEREST SUBSIDY

(i) Under the scheme, interest payable by the students availing of the education loans of the IBA for the period of moratorium (i.e. course period, plus one year or six months after getting job, whichever is earlier) as prescribed under the Education Loan Scheme of the IBA, shall be borne by the Government of India.
(ii) After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the student, in accordance with the existing Educational Loan Scheme as may be amended from time to time.

(iii) The Candidate will bear the Principal installments and interest beyond moratorium period.

Querist : Anonymous (Querist) 13 April 2020
I already submitted all documents to bank regarding interest subsidy. Now bank saying we forget to claim. This mistake from bank side not mine. I fulfil all eligible conditions. What I will do?

KISHAN DUTT KALASKAR (Expert) 13 April 2020
Dear Sir,
Students can claim damages and compensation

Now, no claim can be submitted upto FY 2016-17. If the Banks have failed to submit the claims fully or partially or failed to inform the students about the subsidy procedures, they can approach 'District Consumer Forum' and file a complaint against the Branch and the Managing Director of the Bank claiming damages and compensation. This is a simple and cost effective legal process. Students can visit District Consumer Forum personally and meet the officials and take guidance. Or they can approach their advocate.

If the Government has not settled 100% subsidy, the students can file case against the Bank and Government of India in the High Court.
http://www.eltf.in/2018/01/how-to-handle-when-banks-did-not-claim.html

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Rajendra K Goyal (Expert) 13 April 2020
First send RTI to Bank and the Government whether interest subsidy was duly approved by Government in your case.

If it was among the sanctioned list of 400 candidates, you can claim damages.

It is repeated that generally the interest subsidy is not claimed at Branch level, it is claimed at controllers level. If your name was among the approved candidates, please inquire whether subsidy can be claimed at this stage.

Raj Kumar Makkad (Expert) 13 April 2020
As you have already clarified that your subsidy was duly sanctioned and you were entitled for the grant of 100% subsidy and if banker has failed to claim from the Government within time you are not to blame for the lethargic attitude of concerned bank officials. You need to serve the bank through a notice of a local lawyer to be engaged by you. You are required to reply the notice received from the banker wisely.

Rajendra K Goyal (Expert) 13 April 2020
Loan was sanctioned by Bank, person was entitled for the interest subsidy, which was to be sanctioned by the Government. However, Government only sanction subsidy to 400 students in one year (distributed state wise). Every entitled student do not get interest subsidy.

There is all possibility that the author, though was entitled / eligible but was not shortlisted in 400 students selected for grant of interest subsidy in that year.

Even if subsidy is sanctioned by the Government, full interest after moratorium period is to be paid by the student. Government provide interest subsidy only for the time till moratorium period ends.

Under the circumstances, it is once again advised to get the confirmation from Government department whether the student was sanctioned / shortlisted for interest subsidy under the scheme.

Raj Kumar Makkad (Expert) 13 April 2020
Where are the facts of granting subsidy to only 400 students? With intent to post maximum time on a single post sometimes leads the experts to prepare their own facts which is not a good practice.

Raj Kumar Makkad (Expert) 13 April 2020
Once the author has posted the fact that the bank has accepted its guilt of not sending the case of the author to Government in time then the repeated question on the same point shows something otherwise.

Rajendra K Goyal (Expert) 14 April 2020
Please download FAQ from following site, list of eligible students for each year (eligible for renewal and fresh) can also be downloaded and checked whether interest subsidy for a student was approved by government in a particular year or not:

http://www.minorityaffairs.gov.in/schemesperformance/padho-pardesh-scheme-interest-subsidy-educational-loans-overseas-studies-students-belonging-minority/faqs-related-padho-pardesh-scheme-interest-subsidy-educational-loans-overseas-studies-students

FAQ thus downloaded is as under:
FAQ 3 : Is Interest Subsidy guaranteed for all eligible applicants?
Answer:
No, interest subsidy is not guaranteed for all eligible applicants. However, it would be Ministry’s endeavor to provide interest subsidy to all eligible applicants to the extent possible. As per provision of scheme, total number of students to be selected in a year is 400. State-wise/Community-wise quota is fixed as per Annexure.

Rajendra K Goyal (Expert) 14 April 2020
From the above link, fact of eligibility for 400 students can be confirmed.

The question of acceptance of any fault by SBI rises only when the author was approved / selected for interest subsidy by government after meeting all criteria fixed. .

The author is requested to confirm the fact that his name was included of selected students in the list downloaded from the given link.

After such information further guidance can be provided.

Raj Kumar Makkad (Expert) 14 April 2020
Once when the author has confirmed that his name was not sent by Bank to Government due to its own error, how further question of his not falling in 400 students do arise? Bank has accepted its eorror of non-sending the name of the author which is sufficient to make the author entitled for the losses which he has suffered due to lethergic attitude of the bank.

Rajendra K Goyal (Expert) 15 April 2020
Applying for sanction of Interest Subsidy by Bank is separate than the claim of interest subsidy once the case has got sanction by Government. cases for sanction are sent at Bank level and not at Branch level.

It is the RTI which can clarify the situation.

Raj Kumar Makkad (Expert) 15 April 2020
A candidate who is entitled for 100% subsidy shall never be treated for the interest or principle subsidy separately. The base of the loan is 100% subsidy then the entire responsibiity rests with the banker to forward the case of such candidate with the appropriate authorities within the stipulated time and if it fails to perform its duty, such candidate cannot be penalized.

Rajendra K Goyal (Expert) 15 April 2020
Please refer the government scheme in this regard.

Main reason of non receipt of interest subsidy can be the possibility that 400 nos. of deserving students shortlisted by government as per priority / norms under the scheme has been finalised.

Again repeat that the fact can only be ascertained through RTI.

This route is better / short / convient / cheaper than to go legally through a court of law.

Raj Kumar Makkad (Expert) 15 April 2020
The question of 400 students comes in the picture only when the case of the author has been sent by the bank. When bank is regretting for not sent the case then nothing is going to be achived by askiing the reason for not taking into consideration of the case of the author. Basic requirement has not been completed by banker.

Rajendra K Goyal (Expert) 16 April 2020
Expert Raj Kumar Makkad ji, thanks for agreeing regarding 400 candidates per year.

So far as question of sending name for sanction of interest subsidy by government / as per my knowledge, names of eligibles are sent at Head Office level. Though the queriest has not confirmed but practically he must have got the information regarding non claiming at Branch level. Branch has not forwarded the name, they refused. To get the information at Head Office level RTI is the procedure. Head office does not deal with clients directly. Information is collected from CBS accounting system.

If H.O.also has not forwarded the name, Bank is liable for deficiency of service.

Queist can lodge complaint with the Bank online to know actual situation.

Raj Kumar Makkad (Expert) 16 April 2020
@ RAJENDER GOYAL JI! YOU ARE MISUNDERSTOOD THAT i HAVE ACCEPTED THE LIMITATION OF 400 STUDENTS. NOWHERE IN MY REPLIES THERE IS SUCH ACCEPTANCE. MY CLEAR STAND IS THAT THE CANDIDATE' GOT LOAN UNDER 100% SUBSIDY (PRINCIPLE PLUS INTEREST BOTH) SCHEME BUT BANKER FAILED TO PERSUE THE CASE TO GOVERNMENT. WE MUST BE AWARE THAT IT IS NOT THE BANK BUT IS THE GOVERNMENT WHICH FUNDS SUCH SCHEMES. IF BANK HAS NOT APPROACHED TO GOVERNMENT FOR REIMBURSEMENT, THE CANDIDATE CANNOT BE BLAMED AND THERE IS NO QUESTION OF ALLGED THEORY OF 400 STUDENTS WHICH YOU INTRODUCED IN YOUR REPLY. IS THERE ANY NOTIFICATION OF GOVERNMENT OF INDIA CONTAINING THE LIMIT OF 400 STUDENTS IN YOUR HAND FOR THE YEAR WHEN THIS AUTHOR WAS GRANTED THE LOAN BY HIS BANKER? IF YES, PLEASE POST IT HERE SO AS OUR KNOWLEDGE.

THE PURPOSE OF RTI IS STILL UNANSWERED FROM YOUR SIDE IN THE LIGHT OF BANKER'S WRITTEN ACCEPTANCE OF NON-SENDING THE CASE FOR REIMBURSEMENT ON ITS PART TO GOVERNMENT OF INDIA.

Rajendra K Goyal (Expert) 17 April 2020
Sorry, I thought you have agreed because if the given link of Government containing the details of scheme is visited, the position would be clear regarding 400 students.

Again requested to go through full scheme of the Government regarding this scheme.

T. Kalaiselvan, Advocate (Expert) 18 April 2020
Well advised by expert Shri R K Goyal, the author may follow the advise rendered by this expert which will be a guidance to solve all the issues that have cropped up now.

Rajendra K Goyal (Expert) 18 April 2020
Expert T. Kalaiselven ji, thanks for agreeing.