[Resolved]  Canara Bank — Complaint for Education Loan interest - For Loans granted prior to 1.4.2009

Address:

600047

Dear PM,

We got an educational loan of amount Rs.54, 500(Fifty four thousand and five hundred) for the year[protected], and Rs.54, 500(Fifty four thousand and five hundred) for the year[protected]. My son was studying B.Tech(IT), in the college-Sakthi Mariamman Engineering College, Chennai. I was unable to support financially to him because I was working in my home as a tailor and I will get some Rs.200 per day, and also my husband was not working due to Eye problem and my son also didn’t get job for his education. Even though I have a complexities I have paid around Rs.85, 000 of Principal amount till last month. But they have sent application form to avail loan reimbursement from bank to get the Thasildar’s signature, 26.4.2014 once you came into the rule. As per your announcement below:
For Loans granted prior to 1.4.2009

In Feb 2014, Shri P Chidambaram (then Finance Minister) announced in the Parliament that Government would reimburse 100% of the interest outstanding as on 31.12.2013. Canara Bank 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 loan accounts.

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, they did not get any benefit of the interest subsidy. Similarly the students who closed the education loan account before 31.12.2013 were also not eligible to get interest subsidy.

Now this scheme is closed. Now the students cannot claim any interest subsidy under this scheme. We are writing this only for information.
We also got signature from Thasildar and went to meet the Bank Manager, but he refused to accept that application form, and he suggested to pay principal amount and said we can think about the interest after sometime. And again I went to bank on 12.3.2016, to meet manager, settled the amount Rs.5000 through cheque no. 505499(Indian Bank), and also submitted the letter to request him about the details of Principal amount to be paid, and interest amount to deduct as per your announcement. But they refused to give the details and they are forcing me to pay the interest even though you have announced that Government will reimburse the 100% interest amount. You are supporting to reduce the burden of students but employees in the bank are forcing us to pay interest. Please take a required action to get this resolved.
Below are the details of my Loan.
Loan No. [protected]