If your public sector bank, denied you an educational loan due to inappropriate factors like age, locality etc, you can contact the finance minister or the finance ministry officials and seek redressal of your grievances.
“Banks usually insist that both the guarantor and the candidate should be residing under the area of the branch, which is impractical. We have issued a directive to all the banks with an aim to remove this ambiguity,” said a senior official of the ministry. Banks have been directed by the ministry to avoid such conditions as it could students their dreams.
There have been a lot of students who have written to the Finance Minister seeking his intervention in to this matter, after which relief was given to those students whose cases were genuine. The ministry has directed the PSU banks not to even consider age as a factor, so now, a 35 or 55 year old can avail an educational loan. PSUs cannot deny loans depending on localities of the borrowers since the borrower may belong to the same district but not within 6-8 kms of the bank
Only reasons concerning the past record of the borrower/ student as in his credibility for repayment or his graduacting school, whether it is affiliated to the state or central governments should be considered as criteria for denying loans. This move will enable students to opt for an education loan rather than a personal loan.