India Banks™ Association (IBA) has circulated revised Model Educational Loan Scheme to its member banks. Banks can adopt the scheme with discretion to make changes as deemed fit. The scheme is for all students including students from minority communities.
Indian Nationals who have secured admission to professional/technical courses in India or abroad through an entrance test/merit based selection process are eligible for educational loans under the scheme.
Complaints received from various channels regarding non-sanction, non-disbursal, delay in sanction, disbursal of education loans are taken up with the concerned banks for immediate corrective measures.
The performance of Public Sector Banks (PSBs) under educational loan scheme is reviewed on an ongoing basis. The banks have been advised to ensure that the Educational Loan Scheme is implemented in letter and spirit and that loan applications are disposed of within the prescribed time limit.