CA M. Lakshmanan

M. LakshmananIt is a welcome proposal that the government will pay the interest outstanding as on 31.12.2103 for the education loans taken up to 31.03.2009 and the borrower has to pay interest from 01.01.2014. But for those who have paid interest whether the same will be refunded or the interest portion will be deducted from the principal payable. While granting relief the prompt payers should also be encouraged. Otherwise in future such loans will not be repaid at all thinking that one day or other waiver will be announced and in a such a situation the prompt payers would be at a loss.

Related Press Release of Ministry of Finance Dated 17.02.2014 is as follows :-

Major Relief for Education Loan Borrowers, 9 Lakh Student Borrowers to Benefit

The Union Finance Minister Shri P. Chidambaram has announced a Moratorium period for all education loans taken-up to 31.3.2009 and outstanding on 31.12.2013. Government will take over the liability for outstanding interest as on 31.12.2013, but the borrower would have to pay interest for the period after 1.1.2014. Nearly 9 lakh students borrowers will benefit to the tune of approximately Rs2,600 crore.

Presenting the Interim Budget in the LokSabha today, the Union Finance Minister ShriChidambaram said that a sum of Rs 2,600 crore will be provided in the current financial year itself and this amount will be transferred to the Canara Bank. Mr. P. Chidambaram said that the Central scheme for interest subsidy was introduced in 2009-10 in respect of education loans disbursed after 1.4.2009. However, students who had borrowed before 31.3.2009 struggled to pay interest during the period of study and they deserved some relief.

Shri P. Chidambaram informed that ten years ago, only a few thousand students- mostly the well-connected- got education loans. At the end of December 2013, Public Sector Banks had 25,70,254 student loan accounts and the amount outstanding was Rs. 57,700 crore.

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  1. Akshatha says:

    Hello I’m Akshata. I have taken education loan in the year 2013 from syndicate bank. Taken amount 3.15 lakh. I didn’t paid single emi. I want to waiver the interest amount .how to get waiver the intrest of the loan.

  2. ganesan says:

    we taken education loan taken for BDS from andhra bank-chennai 2004 to 2009–total amout 7.5 Lacs–till now emi amount 5 Lac paid,c. govt substeady S 3.5 Lac received–now apr 2018,bank said total out standing 14 lac,pay immediately otherwise we will take you plugged you father house earlier EMI 12000n per month, now 21,000 pe month(12.25% interest)–(1)question 1–how to ask to reduce the out standing by interest waiver ? (2)question 2–can i ask one time stattlement–(3) do you have any government GO “s to favour to student not having job and clinical now day no patent condition- pls guide me legally sir and protect my fathers pludge house

  3. Deva says:

    i have got loan in 2004, for BE,i have got only 160000, for 6 sem,and repayed only 1lakhin 2011 . after that i didnt pay now the recovery officer calling me and tellig to pay 400000,what i need to do in this case,help me. –

  4. Theresa says:

    Hello Sir,

    I have got education loan in the year of 2019.After announcement of Education loans interest waiver, I checked with my bank for interest waiver, but they informed me that is not an actual news and they couldn’t take any actions also.

    Pls revert on this, really it would be grateful.

    Hoping for your favorable consideration. Thanks..

  5. NAVEENKUMAR N says:

    Dear Sir,
    I have taken educational loan in 2008 for my studies. Currently,I’m paying the loan amount every month.Will I’m eligible to get refund or waive off paid interest on my loan. I have taken from INDIAN BANK …

    1. khushbu says:

      Dear sir, I took a loan of 2,3rupees rupee in the year 2012..for my BDS study…my emi has started.. Can I get the benefit of my condition is very poor and I don’t have job….

      1. Deva says:

        I have taken education loan from PNB in 2003for 164000rs in 3yrs up to 2007.i dint paid any emi up to 2011 I paid 100000.but PNB not given me any idea about educationak budget and last yr I paid 1.5lakh .plz guide me
        Thanking you

    2. priyanga says:

      sir..i got the loan for my BE in 2011-2015.. The government said that the entire interest was i came to bank and they told that there is no waiver please tell that the information is true or not..and also tell the last date to fill the form for interest waiver..pls reply sir..

  6. Sai kiran says:

    Hi Sir,
    I have taken educational loan in 2006 for my studies. Currently,I’m paying the loan amount every month.Will I’m eligible to get refund or waive off paid interest on my loan. I have taken from Andhra Bank..

  7. Shivam Tayal says:

    I have education loan of Rs.2,40,000 sanctioned from SBI in 2011 for B.Tech. which I completed in July,2015. I have not paid anything yet. Am I eligible to avail the subsidy stated in Interim Budget 2014? If I am, what should I do to avail the subsidy? Also, my father died in 2012, if there is any waive off for that too? Please guide me.

  8. usha says:

    i have got loan in 2006, for BE,i have got only 150000, for 3 sem,and repayed only 30000 . after that i didnt pay now the recovery officer calling me and tellig to pay 400000,what i need to do in this case,help me.

  9. Karthika says:

    Hi,I have availed Educational Loan of Rs.1,83,000 from Indian Bank for the period 2007 to 2011.I have repayed the amount of Rs.1,30,000 within the year 2012 with great difficulty.Now applying an interest rate of 14.5%, the bank has raised a case in court to pay Rs.1,75,000.This is highly difficult for me to repay the amount and also I have lost peace of mind.

  10. Rahul says:

    I have not applied for the waiver because of my non-awareness in stipulated time. I had taken the loan starting 2004 to 2008.

    When I contacted the bank they are saying that now I can not avail this offer. But, the scheme of the government does not say any last date. Can I still approach the bank for the waiver.


  11. shashi says:

    Dear Sir,

    I have taken education loan from uco bank of amount 3.50 lac in 2011-13. I could not completed my MBA because the tuition fess was 5.10 & we were not able to pay the same after that i contacted my bank for top up bt they were nt agree for the same & college also were nt raedy to proceed my course without fees. So finaly i had to quite my MBA in 3rd sem. Now i am doing a job & my salary is very low due to the above mention reason. I have a family of one brother with parents apart from that i am getting only 15k that why i am not able to pay my dues & bank continuously harass me & my family.Please help me out how can i relief from this problem Because bank says to repay entire amount ?

  12. arush says:

    Dear sir, I have taken a study loan of 2.6 lakh from sbi in 2008-10 for my mba. But due to not getting not getting any job I was not able to repay the same. Now when I contacted bank this month to start my repayment they have told me my ac is already write off and principle amount is 4.5 lac and asking me to do settle the account with paying some min 50% of the principle amount. So plz advice what should I do.

  13. KSR Murthy says:


    I have taken education loan of Rs. 4,00,000 before 2009 for B.Tech course of my son. The interest waiver has been given to all who have taken loan upto 2009, in which my son case is also covered. But I have already paid more than Rs. 4,00,000. Last year I have requested the bank officials to close my account as I have already paid Rs.4,00,000 and also the govt has already waived the interest upto 2009. When I contacted the bank official, they said that the amount of Rs. 4,00,000 which i have already paid cannot be adjusted in the principle and also they said that as on today I have to pay an amount of Rs. 6,00,000/- I asked them I have taken loan of 4 lacks and i already paid 4 lacks then why i have to pay 6 lacks. They said that the principle of 4 lacks and interest total 6 lacks i have to pay. Being a retired employee i can not pay 6 lacks, I have already paid 4 lacks with great difficulty. I request you to kindly help me out for closing my loan account by adjusting the 4 lacks which i have already paid. I also request the Prime Minister of India to help me and do justice to me.

  14. rahul varma says:

    Respected sir, i applied for the loan in 26/june/2008 Loan document has prepared by bank i.e sanction letter from 5/04/2009 by the idbi bank kindly let me know
    how i can avail the given benefit by government about the educational loan waiver, & what shall i tell them about it, last time when i complaint about it to the bank they has been resolved without solutions, then informed us there is no such information available so you have to pay the education laon repayment at 14.5% such high rate of interest.
    kindly let me know how shall i make justice to my given situation. please let me know asap
    yours sincerely

    with regards,
    rahul varma

  15. bala says:

    Hi Sir,

    I got loan of Rs.2.1 lacs as educational loan from sbi.(2007-11)
    From 2012 i started repaying loan. And i’ve paid more than 2 lacs(inclusive interests)
    By last year 2014 bank said that still having 80,000Rs as pricipal balanace.

    And for subsidy i’m getting reply from branch it was not sanctioned and asking me to pay the balance.
    If i receive subsidy i can close my loan

    kindly suggest me how to proceed further?

  16. prashanth says:

    i took loan in the year 2011 for mba course bu i not get good job and also i facing fincial problem for this reason i am not repaid what should i do.pls guide me

  17. snehal wakchaure says:

    Respected sir,
    M taken education loan for my BE in nov 2009 in SBI m applicable for this scheme??uptil now i paid money as much as possible to me but till lot of repayment is remains and as their rate of intress is 14.25% my cost of education loan is increases day by plz reply is that subsidy is applicable to me??amount of education loan sanctioned & taken by me was kindaly notice my request.


  18. Muthu says:

    Dear Sir,

    I have received educational loan between 2001-2004 for my engineering studies, I have paid few dues and unfortunately due to my financial problem not able to properly continue the dues, am i eligible for this subsidy? When i check with branch manager first he told i am not eligible for this then when i do continuous followup he told i am eligible for this subsidy. But he is asking me to repay the entire amount with full interest as he is not ready to forward through subsidy program. I am corner and i am don’t have that much huge money. I am ready to pay the amount and would like to close my educational loan as per subsidy program. I met manager lot of time but no use. Branch manager is not helping me, in this case what shall i do ? Kindly help. Dont know how to proceed as Branch Manager and Regional Manager are not ready to forward my case through subsidy program.


  19. Govind says:

    Sir my loan sanctioned for scholar loan in sbi for rs. 14 lack (in bits education) in session 14-15. can I eligible for intt. subsidy.

  20. s sudarshana says:

    it is not clear to whom you addressed the letter in your post. (2) Please read the link: if your banker is SBI and most of it is applicable to all banks. (3) Subsidy is the INTEREST DUE ON 31/12/2013 AND assuming interest paid already will be re-imbursed is not correct. (4) IF the applicant is eligible for subsidy (above link) then his liability to bank is (a) balance principal as on 1/1/2014 and interest wef 1/1/2014 (b) total principal repaid till 31/12/2013 can be known from the bank statements of the loan account. (5) after submitting the application (ref the link above) to the bank which disbursed the loan, loanee should take an acknowledgement for the same and contact the nodal bank for quick processing. (6) if any problem of getting the acknowledgement from the bank, they can contact the Ombusdsman of the concerned bank requesting for quick disposal of the application (forwarding to Nodal bank designated branch for this purpse.

  21. BINA VYAS says:

    Dear sit i have question on interim budget there was an announcement for the education subsidy on interest on the loan taken by student.
    but there is no answer from any corner of the bank/institution or from govt who will guide can you pl clarify how to proceed on this issue.
    Dear sir
    i had taken a loan for my son to accomplish his education in USA from your bank at belapur branch from navi mumbai.,During interim budget by sh chidumburumji he announce the EMI relief for the student i m eligible for this ,i am attaching the declaration for the same but afterwards there is no response from banks/institutions,they said we have no communication on the subject so guide us how to proceed,it would be nice if you elaborately educate me on my EMI RELIEF

    With the general elections due in a couple of months, Finance Minister P. Chidambaram tried to endear himself to the families that have availed of educational loans from banks.
    Presenting the Interim Budget for 2014-15 in the Lok Sakha on Monday, Chidambaram announced a moratorium period for all education loans taken up to March 31, 2009, and outstanding as of March 31, 2013.
    INTERIM BUDGET 2014-15: Key highlights
    He also said the government will take over the liability for outstanding interest as December 31, 2013, but the borrower would have to pay interest for the period after April 1, 2014.
    He said nearly 900,000 student-borrowers would benefit to the tune of around Rs 2,600 crore.
    Chidambaram said Rs 2,600 crore will be transferred to Canara Bank, the nodal bank managing the interest subsidy scheme on educational loans.
    He said the interest subsidy scheme was introduced in 2009-10 for education loans disbursed after April 1, 2009, while students who had borrowed prior to that date deserve some relief.

    i took loan on 23 jan 2009 & first disbursement was on 20th feb 2009 and still loan is outstanding and we are paying the EMI,Education loan account number is :123/123675100003315&customer ID is :48855089.(Chidambaram announced a moratorium period for all education loans taken up to March 31, 2009, and out-standings as of March 31, 2013.) INFORMATION IN BRACKET FOR MY ELIGIBILITY.

    once again with heavy heart i need to inform you that there is no awareness in your employees on the subject & you guys are in the business it is very sorry state of affairs. i am your loyal customer & i have relation ship with the bank more then 20 years.

    Dear sir did nit receive any communication from your said authorities nor any clarification pl revert back earliest before next budget is rolled out .


  22. s sudarshana says:

    Mr.Neeraj Singh,
    The branch should have forwarded to nodal bank, viz., Canara Bank for subsidy. Kindly ask them to do. Regarding the returning of the forwarded application to Main Branch after your approaching CBI, have the documents (forwarding and later withdrawing) copy with you and complain to PMO on it’s website stating for having approached the CHI online that you are being targeted this way. Ascertain weather you are really eligible for interest subsidy.

  23. Niraj Singh says:

    Hi Sir. I took loan in 2008 and as per eligibility norm for interest waiver up to 2013 I checked and am eligible for that. My branch forwarded claimed subsidy to regional office to approve and forward in June 2014 but no status. Then I complained on CBI website and then regional manager and branch manager contacted and told there is no such provision so my branch withdrawn the claim after regional office interference and now brach manager want to help me but he is not sure whether claim us correct and asking to contact as there is no RBI or bank notification to remove interest. Plse suggest what should I do.

  24. s sudarshana says:

    Mr.Kabir: I am surprised you are confused even after clear SMS and customer care to you. Dont give any credence to the theory someone in bank demanded money. That cannot be true. Go to bank ask for the balance in the account as also printout of the statement. That will speak the facts. Act based upon what you get in black and white. Wish you good luck. We should appreciate the SBI Hoogly Rural branch in particular and SBI in general for acting on the govt. decision unlike many other banks.

  25. Subir Kumar Dey says:

    Sir i had taken loan Auguest 2008 for my MBA 2008 – 10 from SBI rural branch Hooghly, West Bengal of Rs.328000 ,SBI disburshment Rs.300000 ,Rs.28000 settle with interest ,Now i have pay after got job after july 2010 ,pay upto march 2014 Rs 190000 , now bank credit Rs.31685 subsidy, i am belonging from EWS ,Recently 18 December 2014 I have received sms form CBSSBI that interest on account is changed to 0 % ,pleaase contact branch manager for any queries. SBI write off of RS.324566 ,my online account shown Matured / Closed Accounts then i have send my father with online page documnet bcz i am stay at Delhi. branch manager told that you cant deposit money but branch manager demand money and after written application you can , but I am asked cutomer care of SBI they are told don’t deposit any money so , i am confused please advice because i will meet with branch manger on 27-28 jan 2015. i am worried about this thing ,i have not getting full subsidy amount to my account.

  26. Subir Kr Dey says:

    sir i had taken loan Auguest 2008 for my MBA 2008 – 10 of Rs.328000 ,SBI disburshment Rs.300000 ,Rs.28000 settle with interest ,Now i have pay after got job after july 2010 ,pay upto march 2014 Rs 190000 , now bank credit Rs.31685 subsidy, i am belonging from EWS ,Recently mean december 2014 SBI write off of RS.324566 ,my online accont shown Matured / Closed Accounts ,in future bank demand for money,i have not getting full subsidy amount to my account.

  27. S Sudarshana says:

    Meena: As per the order, the interest outstanding as on 31/12/2013 will be waived. So, interest paid till Dec 2013 will not be adjusted with the principal. Find out the Loan taken, principal returned till 31st Dec. 2013 and calculate the net principal due as on 31/12/2013. All the interest that is due as on 1/1/2014 will be waived and you will have to pay the interest from 1/1/2014. Though this article is silent on eligibility criteria, it is certain the benefit is for EWS persons.

  28. Meena says:

    Hi Sudharsana,

    Please advise will the already paid interest will be taken into consideration for adjusting the pricipal amount.

    As i have took loan by 2006 (completed studies by 2009, we have paid interese till 2012.

  29. s sudarshana says:

    Most important for those seeking education loan waiver: You have to make the application directly to the canara bank, the nodal bank. For more info pl read the link:
    It may also be noted the scheme is only for EWS etc and not for all. 9880037215

  30. sudarshana says:

    Mr.Senthamarai: You are eligible for subsidy again as you got the previous subsidy for period upto 2009.
    Mr.K.Lokesh: Lokadalath is for solution when the problem has different versions from the bank and the customer. There is no objection for you to go to it. In fact when you are not getting the required response you should go to banks ombusdman first for quick solution.

  31. k lokesh says:

    i got letter from bank relating to the lok adalath that bank is giving an stelement ..and in the prevoius months i have submited for waving of tax
    is this best way to go to lok adalath for setlement or wait for the centeral government i had taken Rs80,000/- in 2005 so at this time 9 years had passed. which one is best please sugest me

  32. Senthamarai says:

    I have completed MCA during 2006-2009. I borrowed educational loan 75000 Rs from IOB Bank and I got 19000Rs as interest subsidy in 2009. Still I am unable to pay educational loan 130000 Rs(with interest). My family annual income is 230000Rs. Am I eligible to get interest subsidy till 31-12-2013 under this scheme ?

  33. k lokesh says:

    i have taken education loan of 80,000/- during my i did not got job .
    in augest i got aletter from bank about interst waveing so, i submited all the documants when will i get free from loan

  34. sudarshana says:

    Mr. Vijay,
    Subsidy should come to the bank and not to you. You neednot get worked up on that issue. Give a letter stating that (i) balance due on principal out of the loan as on 31/12/2013 (ii) to write off the interest component due till 31/12/2013, (iii) to recaclulate the EMI for the new principal from 1/1/2014 and (iv) request the bank to consider the EMI’s paid from 1/1/2014 as for the new EMI (to be communicated by them)(v)ask them to send your application to the nodal bank under intimation to you. You also inform that you are not liable to pay any interest that was due from you as on 31/12/2013.

  35. Vijay says:

    Hello Sir,

    I had availed education loan from syndicate bank in 2005. My father was paying only interest till I got the job in 2012. After that I have been paying the installments set by the bank. Now, the principal amount got reduced from 326000 to 181000. I had asked to submit documents for availing the subsidy in May and I did as asked by Bank. Now, its been more than 6 months after I had submitted the documents. When asked bank officials, they say that they are also waiting for the same. When can I get the subsidy, since I am paying more than 2500 towards interest every month. What should I do to get the subsidy faster, since i got to know other banks in my city as already paid subsidy to the beneficiary.

  36. SIVASANKAR says:


  37. s sudarshana says:

    Dear Balaji K,

    Yes. Take action as below (12/11/2014) which is applicable to you also. Nothing happens by itself and one has to work to get the result. Good luck.

  38. Balaji Kandasamy says:

    I did my MCA in 2006-2009. I got educational loan from Indian Overseas Bank, Erode and I am still not able to complete my loan repayment. Will I
    be considered for the interest relief up to 2013 announced in the budget ? Thanks in advance.

  39. s sudarshana says:

    Mr.Mallikarjun / Naim,
    You are entitled for subsidy of the outstanding interest as on 31/12/2013 and liable to repay the balance principle and interest from 1/1/2014. You have to do some work for the same. (i) Collect the statements from the bank and seggregare the principle repaid by you as per monthly entries of your EMI repayment. till 12/2013. (ii) Compute the balance principle due as on 1/1/2014. (iii) Request the bank to forward your request for subsidy of interest due as on 31/12/2013 to the nodal bank, viz., Canara Bank. (b) to compute the revised EMI with the balance principle as the amount due wef 1/1/2014. (iv) Take the official acknowledgement from bank for your letters.9880037215,

  40. mallikarjuna k patil says:

    HI SIR, My wife availed education loan of about 7.12 laks in march 2009. sir iam paying interest regularly can the central govt education loan interest waive off is applicable to her? bank people say it is not applicable(COPORATION BANK KARNATAKA)Sir please guide me

  41. MOHAMMAD NAIM says:

    Hi Dear mr sudharshana

    I took Rupees 10 lac loan in DEC 2007
    for COmmercial pilot training
    i did not get the job AND NOT IN A CONDITION TO PAY

  42. sudarshana says:

    Dear Naveen, Vinutha,
    I am getting mails calls regarding the difficulties faced by the beneficiaries of student loan while their interaction with banks. It is to be noted that the govt. order is not a charity being given to beneficiaries by banks. This subsidy is fully financed by the Modiji’s govt at the centre. In this regard the eligible beneficiaries (taken the loan before 2009 and having interest liability as on 31/12/2013) have to take the following steps:1. Seek the statement from bank incluidng the principal and interest due as on 31/12/2013 and obtain the acknowledgement, informing them that they will be claiiming the interest subsidy as per govt. notification. 2. If the information is not forthcoming (as is the case with many beneficiaries) they should give a reminder informing that they will be contacting the “ombudsman” of the bank for the desired information. 3. After getting the correct figure of the interest as on 31/12/2013 make a formal application for the interest subsidy to the nodal bank through the bank from which the loan was taken and inform the 4. bank (from which the laon was taken to recalculate the EMI taking only the principle due as on 31/12/2013. 9880037215

  43. Sumit Kumar Baranwal says:

    Hello Sir,

    I had taken loan from SBI in 2005 for admission to Btech course. I was not able to repay the loan amount when I passed out in 2009 and managed to repay it in August,2014 the present year. I heard the loan interest waiver news now only. Am I eligible for the waiver? Can I get the paid interest back?

    Please advice.

    Thank You.

  44. sudarshana says:

    Dear Vinutha,
    Make an application to the bank for a (a) statement giving the outstanding interest due as on 31/12/2013 and the (b) waive the same as per the govt. notification. You may also tell them to recalculate the EMI for the balance principal amount for the remaining period. This will help you to account more amount towards principal repayment,and lesser interest liability. Make a copy to the Ombudsman of your bank.

  45. sudarshana says:

    Mr Atul,
    As you have paid the EMI in time the bank manager may be under the impression that no interest is due in respect of the period refered in the Govt Order. Please give an application to the bank manager that (1) the Order has not mentioned about defauters and (2) the whole of the interest for the period under question is to be waved off.

  46. Atul says:

    Dear Sir,

    I took education loan of 3 lac in 2008 for 4 yrs course(75k per year) and also paid loan EMI as per time.After releasing of interest subsidiary scheme this year,my bank manager called me to fill scheme forms and other procedure. I submitted the same 3 Months ago but now bank manager is saying i am not eligible for the scheme since i had paid the interest on time. But this is not mentioned anywhere in circular that a person who has paid interest during study period or moratorium period is not eligible for this scheme. Sir please guide me.. should i approach banking lokpal.
    Thanking you

  47. s sudarshana says:

    Vinutha: 1. Honestly, I could not understand “…… when I am pressing above mentioned i d ….”, stated by you. 2. Bank is justifying in asking you to pay their due, because if they dont, then who will force the borrower?!. 3. You must be eligible for the subsidy with the little input I have from you in these columns. 4. You didn’t act on my suggestion regarding the statement from bank. 5. Pl ask the manager thro a letter and an email for a statement giving the principal and interest part of EMI due and paid by you and the balance outstanding.

  48. vinutha says:

    thanks for your instant reply sir iam feeling happy from your words sir if iam benifited from the interest subsidy ill be thankfull to you throughout my life sir…till last month(on 13/08/2014 paid 4000 as my last pay to the bank)i have paid sir except for few months where i have missed to pay in between because of financial constraints..
    when iam clicking on above mentioned i.d (in your given answer )its showing outlook encryption and iam not able to open or see anything sir …
    now bank manager is calling and forcing me to pay atleast 6000 or ill become N.P.A he is saying ….(its quite confusing sir. according to bank iam not eligible for subsidy because i have started paying my loan then if i become n.p.a atleast then ill be benifitted for interest subsidy no sir then why he is telling me to pay now only to avoid becoming from n.p.a )should i pay n avoid sir or is it better to wait and see .who is the best person to contact on this sir……thank you so muc sir ….

  49. sudarshana says:

    Vinutha: Find out from the bank the interest due as on 31/12/2013 (in respect of the loan taken before 2009). It is not clear upto which date you have paid the EMI regularly. Bank has to honour the subsidy claim as above. for further assistance. Good luck.

  50. vinutha says:

    Hi sir….your reply would help me in great extent. ..I hv taken education loan in 2006 for my b.d.s course …total amount1,89600 r.s after I completed my course ..because of banks repeated notice n call I had to start paying my loan as in emi 7k per month ..till date . I have paid 1,38033 r.s but remaining amount is still1,89,368 r.s 2009 itself I had submitted all documents for subsidy.but I had not got any now when I got to know about the interest subsidy I approached my syndicate bank ….n submitted all essential papers aftr few days wen I contacted bank about it they are telling iam not eligible for any subsidy because I have started paying my loan but iam struggling to pay my emi….whom can I contact on this sir….your suggestion would mean alot….please help me sir thank you

  51. sudarshana says:

    Take the statement from the bank, particularly (i) laon is taken prior to 2009, (ii) interest not paid/outstanding as on 31/12/2013. You will have to pay the interest due from 1/1/2014.

  52. Jugajyoti Pattanayak says:

    I took a Loan on 2005 for MCA(2005-2008) From Bank of India and started the loan amount May 2011 and already paid 1.85L(Principal) amount and claimed for Loan waiver declare by govt. But still the bank asking me for Interest and doing harassment to my parents, since I was a defaulter for some installment ( I was unable to pay the installment since I didn’t have any job in hand).
    So if we will not be benefited form this then why govt. not taking action on these cases. So please suggest me what i need to do.

  53. sudarshana says:

    This is only for defaulters; Loan weaving schemes are generally for defaulters as it assumes they have not paid as they cannot. You may give a standing instruction not to touch your other accounts unless otherwise informed.

  54. dinesh kumar says:

    Dear S. sudarshan
    and other members

    i would like to submit, today conversation with OBC banker they are saying that only defaulters are eligible for the CSIS scheme i surprised by their reply.
    my case is like that loan taken 2007-2009 (MBA)
    with interest started from begining and after 2009 compoundable interest
    i start pay in 2012 three installment than skips few month emi they without inform deduct from my other account and than they call my for further amount after few month i submit a lumpsum and its prima facie shown that i make default so that they deduct some amount from my other saving account and from 2009 to 2013 i have hardly paid 6-7 EMI.
    as per circular where no where it is mentioned the word “defaulter”
    even though i have once defaulter means also alway a defaulter.
    bankers saying that their software automaticaly choose the person who are eligible for this interest waiver.
    i am surprised and need you expert advise.
    i decided to go first for RTI and consumer or ombudsman

  55. Thanika says:

    I have done my B.Tech ECE from 2006-10 I get educational loan from SBI of rs 136185 from studying onwards tax has been paid so far I have paid Rs 120000 as tax tillnow they said we have to pay around 1 lakh remaining is the loan waiver applicable for me pls help me ……

  56. Pradeep Bhumi says:

    Hi, I did B.Tech from 2007-2011 batch.I taken educational loan sanctioned in 2007(Rs 120000 i.e(30 k per year)). I comes under EWS section. Will I eligile for relief interest upto 2013 that was announced by Budget.can you help me on this ?

  57. sudarshana says:

    Madam Sharada,
    You are not entitled for any benefits as you have sincerely paid back the loan taken earlier without default and in time! For the 2nd loan, same is not covered by th is notification.
    From the philosophical point of view having sincerely returned the education loan in time and without any defaults you can rest assure the One above (God) will certainly respond for your fair play and loosing the benefit of subsidy inerest waive off! Wish you good luck!

  58. shradha says:

    I took loan for 2006 10 batch for bsc nursing. I paid complete amount befor 2012. And again for PG i took loan for 2012 14 batch. I did not get any subsidy. My PG loan yet to pay. Hw can i benefited with the scheme. Pls do help me. Pls reply to my mail or directly here

    1. Sajeesh.G says:

      Dear Sudharasna,

      I speaked with Sbi they are saying that,central subsidy ia already came on 2yrs back ,ie rs 29000 ,that y ,iam not eligible,but as on date more than 1.20 laks is been interst.

  59. Sajeesh says:

    Dear ,

    I have taken Ed.Loan Rs.254000 on 06/10/2008 for doing MBA after completing the course it became in 30/6/10 Rs. 283976,I didnt any subsidy ,then after 1yr in 30/6/11 it became Rs,314341 and now it is Rs,363000 ,Overall i paid Rs85000 in last 4 yrs but nothing gone to principsl smonut,and i didn,t got any single Rs as subsidy,Now they have sent an Court Notice so please help me and reply whether i am eligible for the subsidy wavier



  60. Nagarajan says:

    Hi sir
    Today i went to bank(SBI) they simply told me am not eligible for this subsidy, because they explained upto 2006 – 2009 interest subsidy only they should provide so am got loan in 2008 so upto 2009 interest 6500k they provided interest subsidy in my account, but now 2009 – 2013 they won’t provide for this interest subsidy. Bankers said like that.
    every time they told like, so what can i do now ?

  61. sudarshana says:

    You should be eligible for interest subsidy for the interest not paid/returned for period upto Dec.2013. Interest has to be paid for the period from Jan 2014 onwards.

  62. Nagaraj says:

    Hi sir
    I have a education loan in state bank of india in 2008(1.4lk), some period i didn’t pay the interest now in my account my outstanding amount is 2.2lk, i hope you aware of the interest subsidy 2014, till now i didn’t get any amount from interest subsidy, account shows same outstanding amount. Once i have got 6k for interest subsidy. At this situation am i eligible for get this interest subsidy 2014 ? – See more at:

  63. Nagarajan says:

    Hi sir
    I have a education loan in state bank of india in 2008(1.4lk), some period i didn’t pay the interest now in my account my outstanding amount is 2.2lk, i hope you aware of the interest subsidy 2014, till now i didn’t get any amount from interest subsidy, account shows same outstanding amount. Once i have got 6k for interest subsidy. At this situation am i eligible for get this interest subsidy 2014 ?

  64. Gopi says:

    Hi sir,
    i have taken loan during 2007-2011 batch( Already i got subsidy of 5000 last year, whether i will eligible for 2014 interest subsidy scheme . my family income below 3L only. please reply me.

  65. Nandeesh says:

    hello sir,
    I took loan amount of Rs. 1,33,000 from SBI, Kaarnataka on October 2009. Then the interest rate was 11.75% pa. will I come under Interest subsidy as stated by Mr. P Chidambaram. Now the loan amount is Rs. 2,43,000 including interest.
    Now the bank people are asking me to pay Rs. 6,000 pm.
    What shall I do, do I awail any intereset subsidy from Govt.? My moratorium period was 2009-2013.
    kindly mail me to my id.

  66. Lokesh says:

    Dear Sir,
    I did my education in BE(2007-11)batch. I took 1,20,000 Rs laon in Union bank of India.So please tell me how i get benefit on my loan ragarding budget.Till I don’t get any subsidy on my laon. So please guide me the same.

  67. s sudarshana says:

    They cannot show subsidy now. Wait for the govt Notification in this regard which may happen at any time which will contian the modalities.

  68. s sudarshana says:

    1. Ask your banker for the actual outstanding interest in the total amount due from you as on 31/12/2013. This amount will be subsidised once the bill is passed and govt. gives an official notification.
    2. Interest payable from 1.1.2014 will have to be paid by you.
    3. Await for the issuance of Notification by govt. in this issue.

  69. Shumaila says:

    I did my B.TECH in 2008-2012 batch,my education loan[Rs.400000.00 & Rs. 1,00,000.00 /year] sanctioned in 2008 September from Vijaya BANK,now in my account statement 4,73,000 RS is showing,and i have paid 1,63,000 till now,& Iam under the EWS section. iam geting interest subsidy & getting message on my phone but its not showing in my account statement.
    now they are asking the more money at least 12,000 per month & Iam unable to submit the same,I am giving the 10,000 per month.
    Iam totally confused about it why they are asking interest money,if government providing the Subsidy for EWS.

    Please reply ………

  70. s sudarshana says:

    Dear Albert,

    Loan is a terrible thing to resort to, particularly if the interest calculation is compound interest. First and foremost point to be noted is we must not miss a single EMI as that will play havoc with the outstanding. The concession granted now is only for the loans sanctioned between 2009 and 2014 and you cannot get any benefit out of it.

  71. Albert says:

    Hi take the loan indian bank on 2008 for my diploma till I unable to pay amount the bank now push to pay loan amount . I take the loan amount of 110000 rs I already paid nearly75000 interest only but now due amount 150000 .. how can I pay the amount I not any benifit from banl side they make me cry daily any one give solutions for my problem if any advice if u plan please contact me

  72. s sudarshana says:

    It is about waiver of interest in respect of Educational Loans taken upto 2009 and interest payment is due as on 31/12/13. It is clear in the first para of the article (as also at more places). The relaxation is to the defaulters on compassionate grounds.
    Mr.Piyush, not applicable to you.

  73. Piyush says:


    I took the education loan for my studies in 2012 and since then i am paying the interest for the every amount disbursed from the bank.

    My question is because of the subsidy given and the amount i was paying as i interest will that amount be deducted from the principle amount??

    please reply

  74. s sudarshana says:

    Dear Priya,
    From the wording of the govt Order and your own contention, we can surmise:
    1. There will be no interest liability to you as the same has been waived upto Dec.2013.
    2. Whatever interest you had already paid may not be taken as part of the principal repayment (in the absence of clear govt. orders to that effect)
    3. You will be obliged to pay the interest liability (not penal) for commencing late the returning of the principal from sep 2013 instead of April 2013. (There is an outside possibility of this also waived if we carefully see the original complete govt orders)
    4. You should get hold of the govt Order/Notification and make proer application to Canara Bank for making up the interest liability to Bank of Baroda, your banker.

  75. priya says:


    I did my B.TECH in 2008-2012 batch,my education loan[Rs.252000.00 & Rs. 63,000.00 /year] sanctioned in 2009 January from BANK OF BARODA .We paid the interest till 2010. Once after receiving the information regarding interest subsidy we stopped paying interest.
    But in our bank they put penalty for the unpaid amount and repeatedly they are applying interest.

    After completion of my course i have to refund the loan from April 2013. But i started after September 2013. For that also i got penalty form my bank.

    Till now i just received subsidiary of Rs.5000.00 [one time only]

    While asking educational loan officers at our bank,they are not answering properly and blindly asking us to repay the loan.

    We paid nearly 1.5 lakh still we have pending of 2 lakhs.

    Pls advise me regarding this till which month i’m applicable for receiving subsidiary

  76. s sudarshana says:

    M.Raju has not given when he took the loan and weather he is paying the interest to bank. The govt. information is clear and can be related with the individual cases.

  77. M. Raju says:

    I have taken an education loan to study abroad. The bank financed only
    for the first year study and refused to finance for the next three years.
    I got support from a private financier for a further year but thereafter
    I could not get financial assistance and returned back to India. I could not
    get into a job as I did not have my degree qualification and now the bank
    is asking me to pay the loan they gave and the interest thereon. Will I
    be considered for the interest relief up to 2013 announced in the budget ?
    Will the Finance Ministry clarify.

  78. karan says:

    i want to find them that if any one person is drop our study is medical issue so how to take the profit of govt education loan interset reliff program .
    plz help me.

  79. s sudarshana says:

    Ref: Triza’s comment;
    It is essential that while defaulters are compensated on compassionate grounds, sincere ones are not put to loss just because they have paid the interest in time.
    This is similar to the loan waiver to formers done on couple of ocassions so much so, nobody wants to repay the loan hoping some day the loan as also interest will be waived.
    The suggestion that the amounts paid as interest should be treated as repayment of principle to that extent from the date the payment was made.

  80. Pranil says:

    Hello, I am happy about gov took some steps to provide some relief by paying the interest amount outstanding till 31 Dec 2013, but what about those students who has struggled lot to pay there loan amount and still the principle amount is outstanding will that the interest amount deducted from the principle amount.if its not then gov is giving an opportunity to the defaulters and its very much unfair to the people who are paid there installments regularly. If it continue happens this way then nobody will there loan amount and they will try to remain as defaulters..

  81. triza says:

    It is a welcome proposal that the government will pay the interest outstanding as on 31.12.2103 for the education loans taken up to 31.03.2009 and the borrower has to pay interest from 01.01.2014. But for those who have paid interest whether the same will be refunded or the interest portion will be deducted from the principal payable. While granting relief the prompt payers should also be encouraged. Otherwise in future such loans will not be repaid at all thinking that one day or other waiver will be announced and in a such a situation the prompt payers would be at a loss. while repaying interest and principal amount I have struggle so much and hypertension so My husband got high diabetic also due to tension but still my ward could not complete the studies due to loan and repayment from where I will brig money .So I am frightened so I am paying the loan interest therefore, I must get interest rebate .

  82. Jaya says:

    Hi, what about those who took loan in 2007 and paid it off in 2013.
    Is there any interest rebate for the students who had paid from 2009 to 2013 & also closed the loan account.

    Kindly Clarify.

  83. avinash says:

    the finance minister chooses to give benefit to defaulters and penlise the prompt payers.this is cruel ,political and absurd joke to law abiding people. sham

  84. Kaushik says:

    Hi, I am struggling to find this answer – I did take education loan in 2008 and have been paying back interest+ principal regularly (may be except a few installments). So where do I stand now? Do i get any benefit or only the defaulters are qualified! It would be great if someone could please clarify this.


  85. megha says:

    This benefit is only for Economically weaker section students whose parental income is less than Rs.4.5 lakhs. As such major students are not benefited from this proposal. Approximately Rs.29000 waiver for 5 years =5800 per year = should have availed a loan of Rs.50000, it was borrowed for 3-5 years…who will borrow this amount….not an engineer or a medical student Just an eye wash by the FM….

  86. GMR says:

    If Govt could fix lower interest ( 2% to 3%) for EL it will be beneficial for students and parents. This will not discourage the prompt interest payers. Govt also need not to write off huge amount ( tax payers funds).

  87. vishal says:

    Hi, what about those who tool loan in 2007 and paid it off in 2012. any interest rebate over there for the interest paid from 2009 to 2012 ??

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January 2021