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Juhi (Self Employed)     16 May 2014

Cheating by pnb bank, in education loan,

This is with the reference with My Education Loan from Punjab National Bank, I took my Education loan in August 2009 for my Higher Education (MBA). At the time of Loan Taking, Bank did not inform us about the Subsidy, for which I was eligible, because my Family's total Annual Income is Less than Rs.4,00,000/- (Four Lakhs).

In 2013, when my Installments was started, I came to know that I was eligible for the Subsidy, then I contacted Bank regarding this.
But Bank refused and said, that "Now Nothing can be done, it should be done at the time of Loan Taking", I requested many times, but they didn't hear me. In April 2013 my Installments were started, but I was not able to pay the same, because my income was very less. I gave application to Bank, to give me some more time for repayment of Loan.
On 17th  August 2013, I requested Bank again regarding Subsidy, but the Manager shouted on me, and said that is your responsibility, at the time of Loan Taking, I said, Bank had not informed us, he said I can not do anything. I said I will contact Higher Management for this, Manager said, I would tell higher Management that we informed you, but you failed to give the Income Proof. They were pressuring me for repayment of Loan. Now I came to know that I could give my Family's Income proof till 31st Dec 2013. But due to Bank's irresponsibility, I couldn't give.
My Father expired on 23rd August 2013, now I am the only  Earning Person in my family.  
I request you to please help me, and give me suggestion, what should I do now.
When My father expired, I went to Bank to take my Loan's Information, at that time he forced me to provide Security, because my father had died. Then I contacted one of my relative who is Manager in SBI, he told me there is no law of providing Security in loan, if it is less than or equal to 4 Lakhs. Then PNB Manager said yes now no need to provide any security, because my relative (SBI Manager talked to him.
Please advise me, what should I do now, is there any way for this problem, can I get Subsidy now.


 8 Replies

malipeddi jaggarao (retired banker)     24 May 2014

It is not cheating.  The rules for subsidy on education loans in Punjab National Bank are as follows:

Central Scheme to provide Interest Subsidy- (CSIS)

The scheme provides full interest subsidy during the period of moratorium on education loans taken by EWS students for pursuing any of the approved courses of studies in technical / professional streams from recognized institutions in India.


Linked with the existing education loan scheme of IBA and  is restricted to students enrolling in recognized professional courses ( after class XII) in India, in educational institutions established by Act of Parliament, other institutions recognized by the concerned statutory body, IIMs and other institutions set up by the Central Government .

Also applicable to the students of accredited universities/ institutions and recognized professional courses, which are administered by the Ministry of Tourism.

Moratorium Period

Course Period plus one year or six months after getting job, whichever is earlier.

Income Limit / Proof

To avail the benefit, Income certificates issued by designated state authorities to be submitted. 

Eligibility for Subsidy

The interest subsidy shall be available to the eligible students only once, either for the first undergraduate degree course or the post graduate degrees / diplomas in India inclusive of integrated courses (graduate + post graduate).

Interest subsidy under this scheme shall not be available for those students who either discontinue the course midstream or who are expelled from the Institutions on disciplinary or academic grounds.


 However, the interest subsidy will be available for the actual period of study, only if the discontinuation was due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institution will have to be given.  

You can submit the Income Certificate to the higher authorities of Punjab National Bank, with a copy to the Branch Manager where you have the education loan account and ask them to waive interest as you are eligible for subsidy. 

There is no link with the subsidy and repayment.  Once the moratorium period is over, you have to start repayment of installments.  Please start repayment and fight with the bank for waiver and adjustment of interest during the moratorium period claiming subsidy.  

Anupreet Kaur   09 September 2015

I agree with Juhi... They have done the same thing with me as well. Also when I am asking them to at least fix my interest for this time period.. They said no, as this is too late and now you can't claim it back.

Juhi (Self Employed)     28 September 2015

Dear Sir,

I had complained against them in RBI and their Head Office, Now after so much of  hassels, they have claimed my Subsidy, even I got call from RBI ombudsman, and they have ensured me that i will get my Subsidy, i have also got the Email stating the same.


Dear Anupreet, you can also do the same, which I have done, they have to give your subsidy.

Anil   05 October 2017

Dear Juhi and Anupreet, sad to hear your problem. I am also going through the same problem as pnb is refusing to provide me the subsidy. Have you received your subsidies??? Please do reply as it will be a great help

Juhi (Self Employed)     05 October 2017

No I have not received my Subsidy yet. No one is taking any action. We can file case againat them if you want. From which Branch u took loan

Juhi (Self Employed)     05 October 2017

I will start a petition Please give me your email ids.

Anil   05 October 2017

Yes.. if thats the only option left, we should. my email ID is Meanwhile, I am also trying to figure out the possible solution. please be in contact if any update and share our mail ID.............thanks for reply

Anil   05 October 2017

i have taken loan from PNB

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