3 months for banks to claim subsidies for education loans

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CHENNAI: Banks across India can now submit claims for the education loan interest subsidy for eligible accounts for the financial year 2016-17 from August 23 to November 23. Canara Bank is the nodal bank and they will be opening the portal. All the students who have availed education loanfrom the Banks under Indian Banks’ Association (IBA) Scheme to pursue professional / technical courses in India are eligible to avail the full interest subsidy, if the annual parental income is less than 4.50 lakhs.

Many banks have failed to claim the interest subsidy from MHRD thereby transferring the burden on eligible students which in many cases leads to accounts becoming Non Performing Assets (NPAs). It is the responsibility of the banks to submit the claims properly within the due date. Poor knowledge among the bank managers on eligibility of CSIS scheme and the portal are some of the reasons why this is happening, sources said.The Central Scheme to provide Interest Subsidy (CSIS) for education loans, MHRD provides full interest subsidy to the eligible students during the study period plus one year moratorium period.


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