CA M. Lakshmanan
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.
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.
Author Bio
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. sudacgwb@yahoo.com for further assistance. Good luck.
Please help me on this sir ….whom to contact and seek advice on education loan interest subsidy when bank is not redy to help ….
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 ..in 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
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.
Hi,
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.
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.
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
Hi,
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 ……
You are covered for amounts drawn till 2009
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 ?
You may get next subsidy based on the present Order now.
Shradha and not Sharada!
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!
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
You are elgible for interest subsidy as you have taken loan prior to 31-3-2009. You will have to pay interest due from 1.1.2014.
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
thanks,
Sajeesh
Pl get a copy of the circular the bank has from their Head Office and go through the same.
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 ?
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.
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:
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 ?
Hi sir,
i have taken loan during 2007-2011 batch(b.tech). 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.
Dear Avi,
You should be elgible for interest on loan taken prior to 31/3/2009 and accrued upto 31.12.2013
i took loan as
2007- 100000
2008-100000
2009-70000
2010-70000
how can i benifeted with this scheme.
You have taken the loan after March 2009, is it not? As per the article you are not eligible.
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.
hi i took the loan to study abroad..am i eligible for the subsidy..pls rply soon
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.
They cannot show subsidy now. Wait for the govt Notification in this regard which may happen at any time which will contian the modalities.
Mr.Shumaila,
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.
Hello,
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 ………
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.
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 albertgnanadurai@Gmail.com
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.
Hi
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
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.
Hi,
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
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.
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.
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.
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.
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..
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 .
I want pdf file of relief on education loan rules and regulation
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.
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
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.
Thanks,
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….
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).
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 ??