(GXFDWLRQ/RDQ7DVN)RUFH(/7)&ODULILFDWLRQVRQ(GXFDWLRQ/RDQ,QWHUHVW6XEVLG\6FKHPH&6,6

HOWILQ

YLHZRULJLQDOVORZWRORDG

(GXFDWLRQ/RDQ7DVN)RUFH(/7)
(/7)LVDYROXQWDU\ERG\WRFUHDWHSXEOLFDZDUHQHVV(/7)SURYLGHVRQO\JXLGDQFH(/7)
GRHVQRWXQGHUWDNHWRJHWORDQV
+RPH

:HGQHVGD\6HSWHPEHU

&ODULILFDWLRQVRQ(GXFDWLRQ/RDQ,QWHUHVW6XEVLG\6FKHPH
&6,6

ELTF has been getting lot of enquirers from different part of country seeking clarifications on
'InterestSubsidyScheme'.
TherearetwotypesofInterestSubsidyschemeforstudentspursuingeducationinIndia.
1.FirstScheme:ForLoansgranted/disbursedonorafter1stApril2009
2.SecondScheme:ForLoansgranted/disbursedpriorto1stApril2009
Eligibility
ForboththeSchemes,theeligibilityisasfollows:
a)TheEducationLoanshouldhavebeensanctionedunderIBAScheme
b)TheLoanshouldhavebeengrantedtopursueprofessionalortechnicalcoursesinapproved
Institutions after 12th std. (Diploma students joining Engineering Courses through lateral entry
arealsoeligible)
KWWSJRRJOHZHEOLJKWFRP"OLWHBXUO KWWSZZZHOWILQFODULILFDWLRQVRQHGXFDWLRQORDQKWPO HL 4L$1W1 OF HQ,1 JHLG  V  P  WV 





(GXFDWLRQ/RDQ7DVN)RUFH(/7)&ODULILFDWLRQVRQ(GXFDWLRQ/RDQ,QWHUHVW6XEVLG\6FKHPH&6,6

c)TheeducationshouldbewithinIndia
d)Thegrossparentalincomeshouldbelessthan4.50lakhs.
ForLoansgrantedpriorto1.4.2009
In Feb 2014, Shri P Chidambaram (then Finance Minister) announced in the Parliament that
Governmentwouldreimburse100%oftheinterestoutstandingason31.12.2013.CanaraBank
was appointed as Nodal Bank to pool the data. Interest component on all eligible loans
outstanding as on 31.12.2013 were paid by the Government to the Banks and credited to the
loanaccounts.
In this scheme, the students who availed loan prior to 1.4.2009 and who paid the interest
regularly, were in a disadvantageous position. Since interest component was either nil or
negligible,theydidnotgetanybenefitoftheinterestsubsidy.Similarlythestudentswhoclosed
theeducationloanaccountbefore31.12.2013werealsonoteligibletogetinterestsubsidy.
Now this scheme is closed. Now the students cannot claim any interest subsidy under this
scheme.Wearewritingthisonlyforinformation.
ForLoansgranted/disbursedonorafter1.4.2009
Government of India (Ministry of HRD) provides 100% interest subsidy for the eligible students
(asgivenearlier)foralltheloansdisbursedonorafter1.4.2009duringthemoratoriumperiod.
Ifaloanhasbeensanctionedin2007forRs.4lakhs,tobedisbursed@Rs.1lakheveryyear,
the student is eligible for interest subsidy for the disbursements made in 2009 (if it is after
1.4.2009)and2010.
Moratorium period is the study period + one year of six months after getting employment
whicheverisearlier.
Interest subsidy is available for either Under Graduation or Post Graduation. From the same
family,brothersandsisterscanavailthesubsidyindividually.
Studentscanavailthesubsidyunderonlyonescheme.Studentswhoavailedsubsidyunderthe
secondscheme(loanspriorto1.4.2009)arenoteligibleforsubsidyunderthefirstscheme.
Pleasegothroughtheguidelinesinthislinksverycarefully.
http://www.eltf.in/2010/10/centralschemetoprovideinterest.html
http://www.eltf.in/2012/03/interestsubsidyschemeoneducation.html
Problemsfacedbystudents
The students were required to submit the Income Certificate to the Bank to claim interest
subsidy.SincetheBanksdidnotintimatemanyofthestudentsintheearlyyears,manyeligible
studentsdidnotgetinterestsubsidy.
It is the duty of the Banks to identify the eligible students and advise them to get the income
certificate.Also,itisthedutyoftheBanktosubmittheclaimthroughtheNodalBankportalto
theGovernmentofIndiawithinthetimestipulatedbytheGovernment.Duetothefaultofmany
oftheBranches,claimswerenotsubmittedinthepastclaiminginterestsubsidybytheBanks.
Eventhestudentswhogotsubsidy,receivedonlyasmallportionoftheinterestdebitedbythe
Bank.Inmanycases,Banksfailedtosubmittheclaimforfewyears.Forexample,banksmight
not have claimed for 200910, but claimed for other years. Also, they might have claimed for
200910, 201011, but might not have claimed for other eligible years during the moratorium
period.
ELTF has been taking up this issue through supporting MPs in the Parliament and with the
KWWSJRRJOHZHEOLJKWFRP"OLWHBXUO KWWSZZZHOWILQFODULILFDWLRQVRQHGXFDWLRQORDQKWPO HL 4L$1W1 OF HQ,1 JHLG  V  P  WV 





(GXFDWLRQ/RDQ7DVN)RUFH(/7)&ODULILFDWLRQVRQ(GXFDWLRQ/RDQ,QWHUHVW6XEVLG\6FKHPH&6,6

Governmentforthepastthreeyears.
Theeligiblestudentscancheckthestatusoftheirinterestsubsidythroughthislink
https://epayment.canarabank.in/MHRD/CSISACDetails.aspx
(Some students may get 'Data not available' message. In that case, the students have
to approach only the Bank manager for details. It is the responsibility of the Bank Managers to
providetheclaimrelateddetailstothestudents.)
GovernmentofIndiaopenstheportalasonetimemeasure
InordertoresolvetheconfusionofthepastdisbursementofInterestSubsidy,theGovernment
ofIndia(MHRD)hasnowpermittedtheNodalBankCanaraBanktoopentheirportaltoenable
theBankstofiletheclaim.
Accordingly, all the pending claims, unclaimed interest subsidy for the period from 200910 to
201314 can now be claimed by the Banks. Though the portal was supposed to have been
opened on 1st Sep 2015, due to some technical reasons, it is likely to be opened next week.
PleasekeepwatchingthissiteandourFacebookpageforlatestupdates.
https://www.facebook.com/EducationLoanTaskForce

(Update: The Portalis opned on 7th Sep2015andwill remain opentill10th

October2015)
Whatstudentscando
Ifyouhaveanyeducationloandisbursementonorafter1.4.2009(irrespectiveofyourdateof
sanctionsay2008or2007)andifyouareeligibleforinterestsubsidyasgivenintheearlyparas,
then check your statement of account and also through the link given above for the subsidy
claimedbytheBank.
Please compare the actual interest debited by the Bank during that Financial Year with the
interest credited or not credited. If the students find that either interest subsidy for that year
has not been claimed or shortly credited, please write a letter giving the complete details and
handovertotheManager.PleaserequesttheManagertoclaimtheinterestsubsidy,whenthe
portalopens.
If the students get a response from the Managers that they have not received any instructions
fromtheHeadOffice,thestudentscansendtheirrequesttotheChairmanoftheBank,Regional
ManaerandtotheBranchunderRegisteredPost.YoucanalsomentionthattheManagerrefused
to accept the request. You can request the Managers to claim the interest as and when the
portalgetsopened,afterverifyingthecorrectness.
Ifrequired,thestudentscanmeettheRegionalManagerandsubmitaletterpersonally.Though
itisthedutyoftheBankManagertoidentifyandsubmittheclaim,toavoidanyfutureconfusion,
ELTFsuggeststhatstudentsthemselvescanverifyanddrawtheattentionoftheManagers.
ForthelatestIBAguideline,pleaseclick
http://www.eltf.in/2015/08/allpendinginterestsubsidyclaimscan.html
ELTF will not follow up individual cases. If the students find any difficulty, they have to send
complainttoChairmanoftheBankandtoReserveBankofIndia.PleasedonotwritetoELTFfor
individualissues.TheycanpersonallymeettheRegionalManagersandsortouttheissues.
This is an one time measure allowed by the Government. Hence, students and banks should
availtheopportunitysothatallthependingcasesareresolved.
KWWSJRRJOHZHEOLJKWFRP"OLWHBXUO KWWSZZZHOWILQFODULILFDWLRQVRQHGXFDWLRQORDQKWPO HL 4L$1W1 OF HQ,1 JHLG  V  P  WV 





(GXFDWLRQ/RDQ7DVN)RUFH(/7)&ODULILFDWLRQVRQ(GXFDWLRQ/RDQ,QWHUHVW6XEVLG\6FKHPH&6,6

ByKSrinivasan,Convenor,ELTF

.6ULQLYDVDQ DW30
6KDUH

1RFRPPHQWV
3RVWD&RPPHQW
1RWH2QO\DPHPEHURIWKLVEORJPD\SRVWDFRPPHQW

/LQNVWRWKLVSRVW
&UHDWHD/LQN

+RPH

9LHZZHEYHUVLRQ

3RZHUHGE\%ORJJHU

KWWSJRRJOHZHEOLJKWFRP"OLWHBXUO KWWSZZZHOWILQFODULILFDWLRQVRQHGXFDWLRQORDQKWPO HL 4L$1W1 OF HQ,1 JHLG  V  P  WV