What is in the news is that the Indian Bank’s Association (IBA) recently issues a circular describing that the SC and ST cast will get there interest on education loan compensated.
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The circular was issued on 5th November to the central government led by BJP. They have asked the banks to submit their claims to the for interest subsidy on education loans only for the students those who belong to the SC and ST communities.
The banks are supposed to submit the claims from the period 1st April 2009 till the year 2013-14. The claims have to submit to the nodal agency of the Canara Bank in respect of eligible students belonging to SC/ST.
Last date to submit for the banks for submitting their claims is Dec 31st, 2014.
How the amount will be reimbursed-
As per the interest subsidy scheme, the central government would reimburse the banks the interest that is due on the loan amount till the end of one year from the date of completion of the course, or six months from the date on which the student lands a job after his course, whichever is earlier.
According to K.Srinivasan, who is the convenor of Education Loan Task Force(ELTF) and a former banker told IANS), the Centre would reimburse the interest of education loan of the students whose parental income is less than Rs 450,000 per annum. The loans considered are for professional and technical courses and not for arts/science, and students of diploma courses.
The ELTF guides students on rules and regulations governing education loans offered by nationalized banks.
Moreover, he says the students that belong to SC and ST communities can contact directly to their respective bank managers from where they have availed loan and submit the necessary documents to claim the interest subsidy.
The central government has made it very clear to IBA that funds are not available for catering to claims of general category students for the year 2013-14. Source: IANS