There are good many numbers of public and private sectors banks in India offering education loans to bright and deserving students for higher study in India and abroad. With a view to provide better educational facilities to bright and deserving students across the country, the Finance Minster Mr. P Chidambaram has asked all public sector banks to clear education within 15-30 days.
Mr. Chidambaram, in a written reply to the Rajya Sabha, said, “As per the norms prescribed under the Model Education Loan Scheme, the banks are required to dispose of loan applications within a period of 15 days to 1 month.”
The minister also added that banks should also institute an on-line system to clear such loans. In fact the facility is now provided by all major public sector banks. “The government has advised the banks to institute an on-line system of loan applications,” the minister added.
Pointing out the advantages of online loan system, the minister said, “This will enable students to download the loan application form, apply online and learn the status of their loan application.”