Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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SACHINRAJ KV (STUDENT)     14 June 2014

Educational loan


 i have taken educational loan from Union bank of india in 2009 for meeting the expenditure of my btech degree. The loan amount was 2.5 lac. and the loan was under the subsidy scheme. but after the morotorium period the bank is telling that the amount has become 3.25 lac. why this happened?

                              But the actual problem is not that, after my btech i have cleared gate exam and iam pursuing mtech, so it is difficult me to pay the EMI and the bank manager is threatening that he will take action over me. the re payment period is upto 10 years after morotorium.i want to know that the bank has the power to take action on me before the repayment period.


 11 Replies

Dr J C Vashista (Advocate)     14 June 2014

Settle the issue with the Manager, I think he is right as per terms and conditions of loan advanced to you for pursuing B Tech and not subsequent.

SACHINRAJ KV (STUDENT)     14 June 2014

the manager have the power to take action before repayment period..omg...i know its my reposibility to return the debts but all i need is some more iam continuing my studies don't i have the rights??

MANOJ KUMAR (T O)     14 June 2014

Dear Sachin Raj

Your problem is genuine. The purpose of loan is for education and student can't pay the EMI unless he got the job. In your case you are studying but based on the track record of the loan repayment bank will consider you request. please inform whether you was entitled for CSIS. if yes write to IBA if bank will furthar threaten you. 

SACHINRAJ KV (STUDENT)     14 June 2014

yes sir, my loan is linked with CSIS. but the morotorium period ends in 2014 march.and they started calling me after this.

sir iwant to ask you that during the morotorium the loan amount has been increased. that is rs 75000 has added to my principle. i asked about this to the bank and they are telling that you wont get the complete subsidy ,only 25000 has been credited and rest you want to pay. is this true ?  submission of documents for the CSIS is one time or we want to submit it yearly? peoples are giving such replies that i want to submit docs yearly for subsidy ?...pls help me to solve this matter

MANOJ KUMAR (T O)     15 June 2014


Dear Sachine Raj

Please mail following information to my email id

1)      Loan sanctioned and date

2)      The loan was sanctioned for pursuing B Tech hence

a.       date of admission

b.      date of completion of course

3)      Amount disbursed and date

a.       2009-10

b.      2010-11

c.       2011-12

d.      2012-13

e.       2013-14

4)      Amount of CSIS benefit received during following year (You will get this information from statement of account). CSIS benefit is applicable up to date of course.

a.       2009-10

b.      2010-11

c.       2011-12

d.      2012-13

e.       2013-14

5)      Moratorium period end on as per your loan sanction letter

6)      Repayment amount by you till date to bank, if any.

7)      Date of admission in MBA

In education loan bank charge simple interest till moratorium period and that will add to the principal.    I will study your case and advise you, I think bank has missed some CSIS which may cause 75000 interest.

T. Kalaiselvan, Advocate (Advocate)     15 June 2014

You may follow the guidelines given by Mr.Manoj Kumar in this regard which seems to be meaningful.

Rajendra K Goyal (Advocate)     18 June 2014

Respectfully disagree on some part with Sh mamoj Kumar. When amount of interest is added in the principal, it becomes part of principal and in the next cycle interest is charged on the whole amount. This result in compound interest.

Bank charge compound interest, that too during morotorium period also.

If account is not regular, subsidy may not be credited in the account and has to be returned to original department. The status may be checked in this reference also.

Bankers are lenders and they can proceed as per law if account is not regular.

jakkeeye raghuwanshi (engineer)     18 June 2014

hello  sachin ,

manager have power for action ,so i suggest you meet to this manager say your problem ,and than he will given some time for paid your loan installment .this manager is right ,because this a rule for any type education loan ,so he can do case on you.

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SACHINRAJ KV (STUDENT)     18 June 2014

i would like to thank each and everyone for giving their valuable suggestions. i will be in touch with you all for futher reference.

thank you

MANOJ KUMAR (T O)     19 June 2014

Dear Sachineraj KV

1)      You are entitled for CSIS benefit for the year 2009-10, 2010-11, 2011-12 and 2012-13 subject to fulfillment of conditions.

2)      If bank is not providing the statement of account than apply in writing for the copy of statement of account through e-mail to bank and copy to their local nodal office of the bank. They will not deny providing the copy of statement, in case of failure; you need to take help of RTI.

3)      They charged the simple interest for the period from 01.04.13 to Feb 14 (Mortorium period)  and the remaining part of the CSIS which may be 75000.00.  

4)      Regarding nonpayment of EMI which is due from March 2014, they may remind you and penalize for delayed period. However you may request to the bank and assure that you will make the payment after getting the job on completion of M Tech. Otherwise if you can afford the EMI, start paying the monthly EMI.

Happy studying without tension

SACHINRAJ KV (STUDENT)     28 June 2014


i have taken the satement of my account . following details has been found

CSIS subsidy for 2010= 3500/- 

2010-12(june) =12500/-  



total subsidy =28000/-, where as total interest during this period 103000/- rupees

the bank is telling that nobody will get 100% subsidy. this is a misunderstanding. everyone want to pay their additional interest.

in IBA circular they have written 100% subsidy including morotorium

Attached File : 740323600 subsidy-eduloans.pdf downloaded: 61 times

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