State Bank of India (SBI) authorities on Thursday clarified that the application for an education loan received at the Tiruvalla branch of the bank the other day was returned as it didn’t comply with the existing norms laid by the Indian Banks’ Association (IBA) and Union Government for sanctioning loans.
Reacting to media reports, an SBI press note maintained that as per the existing model education loan scheme in vogue since August 2011, admissions under the management quota are to be kept outside the scope of the Education Term Loans (ETLs) scheme.
Students who secure admissions other than through a common selection process conducted by the State Government or a government authorised agency for engineering, medicine and nursing courses can be considered only under the management quota. Hence, the applications have been returned and the applicants were advised to produce proof of allotment by the centralised agency.
The students were also asked to resubmit their applications, once the revised guidelines to provide ETL to meritorious students, who secure admission under management quota, is put in place.
However, the bank clarified that loans will be sanctioned only after the students proved that they can repay it in future.
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