[Resolved]  Education Loan From PNB — Reimbursements under Education Loan

I had applied for an Education Loan for my son's higher studies. It all started in the month of June 2009 when my admission to an Engg college in Kerala was materialising. When we approached a couple of banks locally, at Cochin, where we have been staying for 6 years (parents are both employed in Cochin), the bankers advised us that "since my ID Card/permanent address proof are in Palakkad address we must first approach the bankers there locally and if they reject the application for any reason, with their letter we can approach the Banks in Cochin".

Accordingly, we applied to Punjab National Bank (Manjapra Branch, Palakkad Dist). On 3.8.09 my son and myself went directly from Cochin to Manjapra to see the Manager and collect necessary forms. We were given 3 forms (1 application for my son + 2 confidential report forms for parents security/income details). We have shown the ENTIRE set of docs that we could produce, to the Manager (like copy of vote ID cards, ration card, income certificates, IT return, admission slip from College, letter from College showing 8 cemesters' expenses, receipts for advance payments made, etc.

The Manager said these documents were enough. Accordingly, after coming back to Cochin, we sent the completed forms with the supporting documents, photos, etc. on 5th Aug 09 to the said Branch (received by them on 8th Aug 09). Unfortunately, I suffered a severe heart attack on 7.8.09 and was admitted to hospital in Cochin, and subsequently had undergone heart surgery. After that, for about 30 days (till 14.9.2009) I was bedridden. During this period, we have not contacted the Bank to follow up for obvious reasons. On 14.9.09 when my father resumed his duties, he had called up the Branch Manager of PNB to check the status of our appliction. He then asked for some more documents. Next day we had sent it to him. Meanwhile, my father died and I was away from Cochin till 3rd Oct 09. When I came back, around 5.10.09 I called PNB Manager who in turn said there are some more documents required. (as I have shown my share of parental property, copy of same was required as one of the pending documents). This was complied with in about 2 days.

Finally, around 3rd week of November 09, we got confirmation from the BM of PNB that the loan has been sanctioned and that all 3 o[censored]s need to meet him for signing certain documents. We went during Nov end and signed the documents.

At this time, he said their Regional Office need a letter explaining why there is delay in submitting request for reimbursement of initial amounts paid to the College. As per their rules, bills dated beyond 3 months will not be reimbursed and hence this requirement. I wrote to them the fact that I had paid initial amounts to the tune of Rs. 2.50 lakhs including refundable deposit of 1.50 lakhs, and had submitted loan application on 8th Aug 09 and it was not my fault that they kept on asking us documents after documents for almost 3 months, and finally after 4 months confirmed sanction of the loan.

Sir, I just wanted to bring to the notice of the public and the Banking Ombudsman (who has not responded to my similar complaing, so far, even after about 3 weeks), the hardships faced by parents, whereas on the other hand the Government and Ministers proudly claim they have been helping the young Indians to get education. Just imagine the plight of mine had I borrowed those 2.50 lakhs to pay the initial amount, how much interest I would have paid so far. And, if it were someone who could not organize this much money, their son would have lost the opportunity of getting admission to higher studies! By the time the Banks process applications and disburse amount, the student would have already committed suicide.....

Please publish this in your website, and if possible take up this very seriously WITH ALL CONCERNED, INCLUDING BRINGING IT TO THE NOTICE OF THE PUBLIC THROUGH PRINT MEDIA.

Thanks & regards,
Rajakumar M A