Largest public sector lender, State Bank of India in an e-circular given to the branches in Kerala circle mentioned that the bank has decided to drop off ‘service area' approach for education loan. The circular also mentioned that the loan application should not be rejected without any concrete reasons.
According to the circular, the loan application should not be rejected without the agreement of the higher authority.
To avoid complaints from the applicants, the branch should record reasons for rejection and the bank should convey it to the applicants too.
The circular also mentioned the points which the Finance Minister had expressed in the meeting which was held on August 18 with the bank's chief executives.
The four main concerns expressed by the Finance Minister were delay in the disposal of the educational loan applications at the branches, rejection of the applications at the initial stage, absence of the grievance cell and sanctions of loans under newly launched scheme for vocational courses are not popularized.