According to an August 18 circular from the Indian Banks ’ Association (IBA) to chief executives of member banks cited a directive issued in this regard by the Union Ministry of Human Resource Development. Banks can now submit claims under the Central Scheme to provide Interest Subsidy (CSIS) on education loans for 2016-17 from August 23 to November 23, 2017.
Canara Bank, which has been appointed as the nodal bank under the CSIS scheme, have been instructed to keep its web portal open from August 23 to November 23. It is the HRD Ministry, which provides full interest subsidy to eligible students during the period of study plus a moratorium period of one year.
The Education Loan should have been sanctioned under IBA Scheme
The Loan should have been granted to pursue professional or technical courses in approved Institutions after 12th std. (Diploma students joining Engineering Courses through lateral entry are also eligible)
The education should be within India
The gross parental income should be less than 4.50 lakhs
The nodal bank has since made necessary changes in the Data Structure Document for capturing the date of birth of students in the CSIS web portal, as per the instructions of the HRD Ministry.
The IBA requested the member banks to submit the claims pertaining to all eligible education loan accounts for 2016-17.
The member banks have also been advised to inform their respective Regional Rural Banks regarding the matter and ensure submission of claims within the stipulated period.
The staff of the member banks are expected to be trained on the CSIS scheme to ensure that claims are submitted in time and without errors.
The Education Loan Task Force, a voluntary body to create public awareness, says that in the past, several banks have failed to claim subsidy to eligible students due to lack of awareness among staff about the scheme.
Even if you have not been contacted by your bank, check if your child is eligible under this category and meet your bank representatives. Parents are required to submit the income certificate signed by the competent authority for applying for the loan.
Eligible students may approach the respective bank managers and hand over a letter copied to the zonal manager of the bank requesting them to submit the claim on time.
This is a great opportunity for students to get a huge break on their education cost as well as giving the parents some respite while repayment.