Central interest subsidy for education loan
I had taken an education loan from Punjab National Bank in the year 2008. I read about the CSIS for education loan for students. Kindly help me in knowing if i am eligible.
Secondly, i had applied for the same through my bank and was told i am eligible while applying. Now after 10 months i am told that there was no ineterest outstanding during the moratorium period so i will not get the subsidy.
Third, i was sent a letter from the branch manager asking to deposit 4 lakh and above to convert my a/c from NPA to standard. I was not informed of it being getting converted to NPA.
Kindly help what i can do.
Asked 2 years ago in Taxation from Raiganj, West Bengal
First you need to be clear on the terms and conditions you signed while taking the education loan in the year 2008. Further, CSIS is for the loans disbursed after 01.04.2009. It seems yours was disbursed before that hence you are not eligible. Please contact Punjab National Bank if any internal circular was made by them in this regard.
If you were told that subsidy is to be given to you then a form might have got filled by you in this regard. please check all documents which were filled for the educational loan and check whether any such clause was signed by you.
The letter which is being sent by the branch manager asking to deposit the money is a SCN before the account is converted into an NPA. if the amount is not paid within the time as specified, then the account will duly be converted into NPA. Act and do the needful at the earliest.
i have been going through a lot of the documents on the IBA's site it shows that CSIS is for education loans upto 2009 and interest accrued till 31.12.2013.
Yes we did fill a lot of forms and submitted documents.
The letter says its already a NPA and i need to deposit 4 lakh for it to be converted to standard. I was not told about the conversion to NPA. It was just a reply to a letter i had sent asking about the status of my application for interest subsidy.
What are my options?
Asked 2 years ago
Could it be possible for you to share the contents of the letter where it is stated that your account is already an NPA?
If that has happened, then it is advisable that a legal notice be sent to the bank stating the wrong done and the misdoing by making your account NPA etc.
If no positive response is received, a case of discrimination and harassment may be filed in the court against the bank. or a consumer case is also advisable which is a better and has speedy remedy.