According to the reports govt. is ready for providing the 100% interest subsidy to the education loan borrowers but many public sector banks are not in favor of the passing on the benefit. The chief manager of one of the branch of the Bank of India explaining the truoble of the bank cleared to a borrower that the education loan subsidy is only 2 % and the total exemption is not there.
However Mr. K. Srinivasan, convenor of Education Loan Task Force stated that if a borrower satisfies the criteria then the borrower is eligible for the 100% interest subsidy. Under the interest subsidy scheme, the centre would reimburse the bank the interest due on the loan amount till the end of one year from the date of completion of the course, or six months from the date on which the student lands a job after his course, whichever is earlier.
Mr. Nivansan also informed that the centre will only provide this facility to those borrowers whose parents are having income less than Rs 450,000 per annum, and further this only for the technical and professional courses not for the Science, arts or diploma courses. The interest subsidy amount will be fully credited to the SC accounts and partially to ST and other General category accounts.