The Indian Banks' Association (IBA) has circulated a revised Model Educational Loan Scheme to its member banks with broad operational guidelines. Banks can adopt the scheme with changes as may be considered necessary.
The Banks have been advised to ensure that the Educational Loans Scheme is implemented in letter and spirit. The performance of Public Sector Banks under Educational Loans Scheme is reviewed on an ongoing basis.
As per information furnished by IBA, the Public Sector Banks had sanctioned Rs. 15,207 crore education loans in 5.42 lakh accounts during the year ended 31st March, 2011. The amount of the disbursement was Rs. 11,200 crore in 8.11 lakh accounts during the year.
Complaints are generally received regarding non sanction/ disbursal, delay in sanction/ disbursal etc. They are immediately taken up with the concerned banks for remedial action. For the year ended June 2011, 99 complaints relating to grant of educational loans against different banks were received by the Reserve Bank of India.