RPCD.MSME&NFS.BC.No. 46/06.12.05/2012-13

Dated: November 9, 2012

Service Area Approach – Educational Loan Scheme

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We have been receiving a number of complaints where students have been refused educational loan as the residence of the borrower does not fall under the bank’s service area. In this connection, we advise that Service area norms are to be followed only in the case of Government sponsored schemes as advised in our circular RPCD.LBS (SAA).BC.No.62/08.01.00/2004-05 dated December 8, 2004 and are not applicable to sanction of educational loans. 

2. Hence, banks are advised not to reject any educational loan application for reasons that the residence of the borrower does not fall under the bank’s service area.

3. You are, therefore requested to issue suitable instructions to your branches / controlling offices for meticulous and strict compliance in this regard.

4. Please acknowledge receipt.


(C D Srinivasan)
Chief General Manager

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0 responses to “Education Loans – Banks not to insist Service area approach”

  1. kailash chander singhal says:

    axis bank ltd- silvassa branch does not grant educational loan and showing the reason that they have not yet started this activity due to shortage of staff and lossed of their branch –told by branch manager

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