Edu loans to be cleared in a month: FM
New Delhi: Finance minister P Chidambaram on Tuesday reiterated that public sector banks are required to clear education loans within a period of 15 days to one month and banks should also institute an online system to clear such loans.
Chidambaram, in his written reply to 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 one month.”
The finance minister, however, said that PSU banks had reported that the time stipulation was being adhered in cases where the applications were found complete in all respects.
In order to provide better services to students, the finance minister said, the government has advised banks to institute an online system of loan applications.
This will enable students to download the loan application form, apply online and learn the status of their loan application, Chidambaram said. TNN
P Chidambaram
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