Interest are the interest now!!

The students are waiting on the higher secondary public examination results, with their fingers crossed. For many, education after +2 had always been a dream or struggle in one-way or the other. Nevertheless, when the  ‘Education Loan’ scheme came into practice, things were put in place and helped millions of passionate dreamers to realize their Kanavu (Dream).

However, getting an educational loan is a tiresome process, for both the parents and the students as well. To the dismay, the complications do not just end by that; they continue while repaying the interest too. I am a 2007 passed out Engineering graduate from a private institution and currently am a working professional. I availed my education loan in one of the Nationalized Bank. Right from the first year, my father has been paying the interest on monthly basis. In 2009, Government announced a CSIS - Interest subsidy  scheme for students who have availed education loan ,for their period of study + six months or one year after getting their job (referred to as moratorium period). In accordance with the scheme, for students who availed loan from 2009 -2010 academic year, no interest will be debited from their account; they will have to only pay the principal amount. For students who availed loan prior to 2009, eligible students’ (whose parents income <4.5L Per Annum) interest will be exempted, except for, the previous payments will not be reimbursed. In my case, even after 2009, I had to pay the interest where in my father continued on my behalf, till when I became employed. I am paying the interest from July 2011 till April 2012. Though I agree that, through this CSIS, I was partially benefited because, a part of the interest I paid got reimbursed. But full interest subsidy is what, I am entitled for. So, what is this interest subsidy scheme all about? Is it just eyewash? This article is a representative voice of the many us and I am cocksure that I am just one among thousands, who suffer this issue.

On a finishing note, I would like to address my fellow friends; if you have availed educational loan from a bank, please realize the responsibility to pay back, so that the bank would be happy to spend it for another student. Let us just pass on the relay stick and collectively make it to the winning line!