Dear Members
Wondering how Nationalised banks are behaving like this. Why can't they provide Interest free loans to deserving poor students on the other hand why can't the college provide free education to desrving poor students.
There are lot of people who try and cheat banks and honest people are always the victim..when will the situation change.
Best regards
Narren
From: BNK 24x7 <mailbnk@gmail.
To: prpoint@yahoogroups
Cc: IOB General Manager <mdd@iobnet.co.
Sent: Thu, July 8, 2010 3:28:07 PM
Subject: Re: [prpoint] Re: Blatant violation of edu loan guidelines by IOB - Comic response from IOB
Good point. Banks expect students or their parents to cough up interest. A 15 year old is not authorised to sign documents for loans etc., Wonder how IOB sanctioned the loan in the first place? Understand their comic behavior since they are taught under outdated banking rules.
bnk
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Thanks & Regards
BNK 24x7
Hand phones: 93210 48332
93200 48332
Land phone: 022-40558914
========
B N Kumar
CEO
Concept PR - Winner of "Agency of the Year 2007" award from PR Council of India
============ ========
On 8 July 2010 15:17, Corporate Ezine PRe-Sense <prpoint@gmail. com> wrote:
8 July 2010Dr K C ChakrabartyDeputy GovernorReserve Bank of IndiaMumbaiDear Dr ChakrabartyBackgroundIn our earlier mail dated 6th July 2010, we have brought to your notice about the harassment to Suganya, a hapless poor student, while disbursing the third instalment of edu loan by Indian Overseas Bank. Suganya does not have father and her mother is mentally not stable. Her mother is living in some 'charity home'. She is living with her grand mother, who receives an old pension of Rs.400/-.She secured high marks in her plus and joined B Sc course. IOB had sanctioned Rs.90,000/ - for her 3 year studies. When she approached the bank during second year, the bank forced her to pay the first year interest of Rs.5000/-. In spite of her pleading that she was a poor girl, the bank did not show any concern to her. She had to borrow Rs.5000/- at a huge rate of 60% to pay the interest. Still she is yet to return the private borrowing.In the first two years, she had obtained an average marks of more than 70%. When she approached the bank this year, again, they insisted to pay Rs.7500/- towards the interest. Since her family did not have any income and unable to borrow again, at huge interest, she preferred to discontinue her education. She joined one textile shop as a sales girl 15 days back. After Education Loan Task Force (ELTF) blasting the information openly in all the groups, IOB issued her the demand draft for the next instalment of fees yesterday. From today, she has joined the college.Response from IOBNow, we have received response from IOB General Manager (copy appended below for the information of all). IOB defends that the student opted for payment of interest to get 1% concession. I do not know how the bank expects the student of 15 year old to understand the technical aspects, before signing. The bank gets the signature in all the papers without application of mind and uses to defend their 'inhuman' approach later. Did IOB officials guide the student at the time of signing the documents properly?Can you believe that a poor girl, who does not have any source of income and suffering from poverty would have opted for 1% concession. Do you honestly believe, that this poor girl would have borrowed at 60% rate to avail 1% of interest concession. This approach of IOB proves beyond doubt, the insensitivity of the Management to the sufferings of poor students.Indian Overseas Bank, through their mail, has brought out the fact clearly how they used to get the signatures from the poor students without guiding them properly and use those signatures later to harass them.Now we have requested the bank to re-credit the amount of Rs.5000/- paid by her last year to her SB account. She is yet to pay back the private borrowing. Who is going to pay the huge interest to the outside borrowing? ELTF is going to demand the Chairman of the Bank to reimburse the interest to this poor girl.Humble request to RBIDue to such type of 'misguiding' or 'misleading' attitude and approach of banks like IOB, thousands of poor students like Suganya are affected throughout the country in IOB and in other Banks.All the Public Sector Bank Boards are having one director from RBI, one director from the Finance Ministry, one director from the Employees Union and one more director from Officers Union. What are they doing, when the banks blatantly violate the guidelines and harass the poor students?On behalf of the thousands of members of all the groups and ELTF, we request you to kindly check up with your own RBI directors, what were / are they doing to ensure that edu loan schemes are properly followed in all the banks.After release of the information through various groups, we have been getting many enquiries and support from various organisations to help this poor girl.Further we also request you to (a) kindly advise all the banks not to violate the guidelines and explain properly the schemes to the students. (b) RBI also should insist on taking suitable disciplinary action against those who violate the guidelines and who are insensitive to poor students. (c) The Branches can also use two hours in a week in all the branches to meet the edu loan borrowers and applicants and give them awareness.If RBI does not take immediate steps, such 'comic' responses like the one from the GM of IOB saying "Suganya opted to get 1% concession' will continue. I am making this letter open to all the groups, so that general public can understand the attitude of IOB and other banks. .We are also endorsing a copy of this to few MPs, who are supporting this cause.With warm regards,SrinivasanEditor in Chief, PreSense www.corpezine. comConvenor, ELTF, www.eltf.co. cc91766 50273
---------- Forwarded message ----------
From: <mdd@iobnet.co. in>
Date: Thu, Jul 8, 2010 at 1:25 PM
Subject: Education Loan Complaint
To: prpoint@gmail. com
Sir,
We refer to your e-mail dated 06.07.2010 on the above subject. Our Bank is following Model Educational Loan Scheme as per IBA guidelines.
As per the Scheme,
i. Interest can be serviced during the study period for which there is 1% interest concession.
ii. Alternatively interest can be serviced after the completion of study along with the principal amount fixed in EMIs
Intially Ms Suganya had opted for servicing the interest during the study period. Hence the Branch had advised her to service the interest. However when she opted to service the interest after the study period our Branch released the final year fees.
We have also advised our Branches that they should entertain genuine requests without rejecting the applications.
This is for your kind information. We hope we have clarified the points raised in your e-mail dated 06.07.2010
R Vaidyanathan
General Manager
Indian Overseas Bank
Retail Banking & Marketing Dept
Central Office
From: Corporate Ezine PRe-Sense <editor@corpezine. com>
Date: Mon, Jul 5, 2010 at 8:18 PM
Subject: Blatant violation of edu loan guidelines by Indian Overseas Bank (IOB) and in-human approach towards poor students
Requesting RBI to conduct a thorough investigation of edu loan accounts with IOB and other banks for blatant violation of guidelines.dear friendsProbably members are aware that our ezine PreSense and India Vision group has set up a new initiative "Education Loan Task Force" (ELTF) few months back, to safe guard the poor and brilliant students from the harassment of banks, when they seek education loan and to create awareness. We have been getting lot of complaints about (a) insisting on security for edu loans lower than 4 lakhs and (b) forcing the poor students to pay monthly interest as a pre-condition to disburse next instalment of term fees, in violation of guidelines. Very sadly, even the Regional Offices and head offices are also party for such violations. All the guidelines are available in ELTF site www.eltf.co. cc for information.Today, we received one heart breaking complaint through Dream India, one of the partner organisations of Action 2020 Team (appended below this mail). Though we have been receiving similar complaints earlier, we thought of sharing this openly with all the members of prpoint, new media forum, TEJOUS, India vision group and action2020, as none of our earlier mails to Chairman of IOB, were responded by IOB.Second purpose of this mail is to create awareness about the education loan among our members and society through media, word of mouth and social media. .We are also endorsing a copy of this mail to Deputy Governor of RBI, few Members of Parliament, Consumers Association of India. We have also met earlier few MPs who have agreed to raise this important issue in the coming monsoon session of Parliament.Case study of Suganya, a edu loan borrower of Indian Overseas Bank:Ms Suganya hails from a very very poor family and her father died long back. Her mother is not mentally stable and she is living in a home. This girl is staying with her grand mother, who receives an old age pension of Rs.400/- from the Government. Dream India has been supporting her for her studies. After securing excellent marks in Plus Two, Suganya joined B.Sc Micro Biology course in a college. She had approached Indian Overseas Bank, Venkatnarayana Raod, T Nagar, Chennai in 2008 and got a loan sanctioned for Rs.90000/ ( Rs.30000 per year for three years).Though guidelines strictly prohibit recovery of monthly interest from the edu loan students, all the branches of Indian Overseas Bank always force all the students to pay interest. In 2009, when she had to pay the second year fee, IOB forced her to pay the first year interest, in violation of the guidelines. Inspite of her pleading that she was from a poor family and explaining her background, the bank mercilessly insisted the payment of interest, as a pre condition to disbursement of next installment. She had to borrow a sum of Rs.5000/- at huge interest of 60% from private money lender to pay the bank interest. Such inhuman approach by banks defeat the very purpose of the scheme.Suganya has been approaching IOB Manager for the past two months for the release of third year fees of Rs.30.000/-. The bank was insisting on the payment of interest of Rs.7000/-. The college started 15 days back. Since she did not pay the third year fees, the college did not permit her to attend the college. Unable to comply with illegal conditions of IOB, she discontinued her studies. Due to inhuman approach of the bank officials. she started working as a 'sales girl' in a textile shop.When the matter was brought to our knowledge this morning by, Dream India, we asked the girl to meet the Manager again with a request. Whenever, such complaints come to us, we request the students to talk to the manager with the same request, keeping their mobile phone 'on'. This would enable us to overhear their conversation. Accordingly, we requested Suganya to meet the manager and request him to release the final instalment of fees. .We heard over phone that the manager was insisting on the payment of interest, as a precondition to the disbursement of next instalment. He also said that it was their bank rule. Subsequently, I also spoke to the manager to ascertain the facts. He also confirmed that he had to approach the Regional Manager to permit her not to pay interest and he insisted on a letter from the student.As suggested by us, she has today submitted a letter to IOB with a request to permit her to pay interest after the completion of studies (as per the guidelines) and also seeking refund of earlier interest paid by her. (please remember she borrowed at 60% interest earlier to pay IOB interest due).It is sadly surprising that IOB insists on a letter to make them follow the guidelines. It is also surprising that branch has to seek permission from Regional Manager to follow the guidelines. Normally, only when the branch wants to violate the guidelines, they have to seek permission from higher officers. This clearly indicates the lack of 'governance' by IOB Management. . :The guidelines are very clear about payment of interest by edu loan borrowers. The interest has to be calculated and added to the principal, one year after completion of studies or 6 months after getting the job, whichever is earlier. Principal and interest should be added together and EMI will be fixed. Branch Managers are required to implement the guidelines strictly. Instead, IOB Head Office, probably, does not want the guidelines to be followed by branches and hence, they are keeping the guidelines away from the branch managers.Though, we are dealing with many banks, we find it extremely difficult to handle IOB, as they are not communicative and never bother about RBI or Government guidelines. I do not hesitate to blame the Chairman and the top management of the Bank for such violation of guidelines and their insensitivity to the poor students. Finally, when complaints are sent, the poor branch managers will be made as a 'scape goat' by these top people, to escape from actions.This is not the only case from IOB. We have been getting lot of such complaints from various people about the violation of guidelines by IOB at all branches. We even took up the matter with RBI to conduct a thorough investigation of IOB and to take disciplinary action against the senior officials, who violate the guidelines. The mail to Chairman of IOB also did not evoke any response earlier. When such violations are seen across the branches, even after our taking up the matter with RBI, we have to blame only the Chairman and Executive Directors of the Bank for their insensitivity to such an important issue. .Appeal to RBIUnless an action is initiated against the top management people like Chairman, such blatant violations will continue in our system.This is only a sample case, as to how banks treat the poor students. We have been receiving such complaints against other banks also.Appeal to members and mediaThrough this mail, I request all members with social consciousness , to write a mail to RBI Deputy Governor Dr K C Chakrabarty to investigate all banks in India for such violation of guidelines, which defeats the very purpose of the scheme by Government and RBI and thereby causing harassment to poor students like the one described above.We also appeal to media friends to highlight such cases of violation through media to create awareness among poor students and banks. Earlier, in an exclusive interview to PreSense, Dr Chakrabarty has advised us to bring his notice such violations, so that deserving poor students are not harassed. He also said in the interview that no poor student should be denied an opportunity to study further, because of his poverty. (In Suganya's case, IOB has denied her opportunity to continue her education and made her to go for work)You can click 'reply to all' and send a mail to all.ConclusionIf ELTF had not taken up this issue now, Suganya would have silently discontinued her studies and she would have remained as a sales girl in a textile shop. Still we are awaiting response from IOB for her request. There may be thousands of such Suganyas in India, suffering silently because of inhuman approach of the banks like IOB and without knowing what to do. ELTF insists all the banks to follow the guidelines given by RBI/IBA and not to violate even one mm.Let us spare one minute, by sending mails to RBI or by creating awareness through media to safeguard such 'faceless' poor and brilliant students.SrinivasanEditor in Chief, PreSense www.corpezine. comConvenor, Education Loan Task Force www.eltf.co. cc91766 50273
---------- Forwarded message ----------
From: Natarajan Raman <natarajan.raman@ tcs.com>
Date: Mon, Jul 5, 2010 at 5:29 PM
Subject: IOB T.Nagar Branch Forces Students to Pay Interest on Education Loan
To: action2020eltf@ gmail.com
Cc: natadreams@gmail. com
Dear Sir,
Student Suganya is doing her B.Sc Micro Biology at Apollo Arts Science college, Chennai. She has got approval for education loan amounting Rs.90,000 for all three years [ 30K per year ] from IOB, Venkat Narayana Road, Chennai. After the first release of the payment, the student was asked to pay interest amount of Rs.5000 for the second disbursement. She was forced to borrow loan outside at a whopping 60% interest.
Currently, she is in third year. She has scored 70% so far and when she approached the bank for her third year loan payment, she was asked to pay Rs.7000 as Interest. Suganya is survived by her mother and grand mother. Her father passed away while her Mom has some mental illness. Her grandmother gets pension of Rs.400 from government. With the only source of income being this, the student had to discontinue her education and had to work at a shop in T.Nagar. The student is a passed out from SV Home for destitute children, the home which is supported by Dream India, one of the partners of India Vision2020 group.
Today, she had a discussion with the IOB manager of T.Nagar branch. The manager explained that he is new to the branch and as per her loan terms she has to make payments towards interest for further disbursal. She has submitted a request letter to approve her loan and allow her make the Interest payment along with the principal. The manager is yet to come back on this.
We have seen many such cases of IOB violating RBI guidelines and taking the students for a ride. I request you to take this mater with the concerned authorities and help the poor student continue her education. The amount of agony she had to undergo cannot be explained in words. I also request you to make the bank repay the 5000rs interest payment she was forced to make for the loan disbursement last year.
Thanking you,
Natarajan Raman
ELTF - Co-Convenor
--
Thanks & Regards
BNK 24x7
Hand phones: 93210 48332
93200 48332
Land phone: 022-40558914
========
B N Kumar
CEO
Concept PR - Winner of "Agency of the Year 2007" award from PR Council of India
============ ========
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