[India_Vision_2020] Re: Faulty anti-poor policy of SBI on Second education loan needs review ~ India Vision 2020

31 March 2011

The Chairman

State Bank of India

Mumbai

cc to :

Dr K C Chakrabarty, Deputy Governor, RBI

Mr S S Ramasubbu, Member of Parliament

Mr Hansraj, Member of Parliament

Mr T K Rangarajan, Member of Parliament

The members of India Vision Group for information

The members of Action 2020 Team for information

Dear Sir

We have earlier brought to your notice about the faulty and anti-poor policy of your bank, while considering the edu loan for the PG courses. We have now received confirmation from your Chennai Local Head Office that your bank does not grant second loan to the students to pursue PG Courses, other than the professional courses. They need to close the first loan, to get the loan for PG Students.

In the interest of the nation, brilliant and poor students can pursue higher education. If SBI is demanding the closure of first education loan, to get the loan for PG Studies, how the poor students can go for higher education? Will they not borrow at a higher interest in the market, to repay the loan, thereby defeating the very purpose of education loan scheme.

Such policy will affect the poor and dalit students enormously, who want to pursue PG Courses, after their graduation. There are many brilliant poor students, who would be prevented to take up higher courses, due to your policy.

We checked up with other banks and they do not have such policy. Such blanket ban by a premier bank like SBI may work against the interest of poor and brilliant students. It will also affect the Dalit students, who want to pursue higher education. That is why, we consider your policy of granting second edu loan to PG students, as a faulty and anti-poor, though you may deny it officially. As a matter of clarification, we say that we are talking about this policy only and not other credit policies.

We know State Bank of India is doing well, under education loan scheme. However, such policy of denying loans to poor students to pursue higher education goes against the interest of social objective. Hence, we request you to kindly reconsider and rreview your policy. Instead of blanket ban, you can consider second edu loan to poor students on their merit, to pursue higher education.

We also endorse a copy of this mail to Deputy Governor of RBI and also to the Members of Parliament for their information and necessary action. We are also circulating this message to our India Vision Members and Action 2020 members.

We request all to kindly go through the back correspondences from the bottom and share your views.

Srinivasan

Convenor

Education Loan Task Force (ELTF)
Part of Action 2020 Team under India Vision Group
Join the India Vision group to get connected with like minded people
http://groups.yahoo.com/group/India_Vision_2020/
Also visit www.indiavision2020.org and
http://www.eltf.co.cc

On Thu, Mar 31, 2011 at 3:36 PM, RAMAKRISHNAN D <d.ramakrishnan@sbi.co.in> wrote:

Dear Sir,

SBI does not have any anti-poor policy and in fact we are in fore front always in helping the poor. We object to this heading and statement.

Our Educational Loan Scheme does not permit second loan to pursue higher studies in general courses but is given to all professional courses.

M.Sc(Agricultural Microbiology) was treated as a professional course and the loan was sanctioned to Shri S.Ramakrishnan by our Nilakottai Branch Manager after due consideration and in consultation.

Please note that our schemes are non-discretionary and non-discriminatory and all our branches are expected to follow the instructions meticulously.

D.Ramakrishnan,
Chief Manager,
Personal Banking Business Unit,
State Bank of India, Chennai LHO

----- Original Message -----

From: Education Loan Task Force ELTF

To: Education Loan Task Force ELTF ; dgmpb.lhoche@sbi.co.in ; SBI CGM Chennai

Cc: SBI Edu Loan Ramakrishnan ; Ramakrishnan Subbiah ; MP Ramasubbu Nella ; MP Hansraj

Sent: Sunday, March 27, 2011 4:10 PM

Subject: Fwd: Faulty anti-poor policy of SBI on Second education loan needs review

dear ELTF members

I have since received a response from Chairman's Secrretariat of State Bank of India, forwarding our mail to local HO at Chennai. They would clarify us further in the matter.

Mr Ramakrsihnan, the student who made the reference earlier called me last evening and said that SBI has now sanctioned the loan for his PG Studies. It appears that the Branch Manager had told him that the bank has now changed the policy.

I am now awaiting the confirmation from SBI that they have now changed the 'faulty anti-poor policy'.

Srinivasan

91766 50273

---------- Forwarded message ----------
From: agm2.pbpl <agm2.pbpl@sbi.co.in>
Date: Sat, Mar 26, 2011 at 11:02 AM
Subject: Re: Faulty anti-poor policy of SBI on Second education loan needs review
To: action2020eltf@gmail.com
Cc: dgmpb.lhoche@sbi.co.in, d.ramakrishnan@sbi.co.in

Dear Sir,

We acknowledge receipt of your mail addressed to Chairman. We have forwarded the same
to DGM(PB), Chennai who will look into the matter and advise you in this matter.

With regards,

DGM(PL)
PBBU, CC, MUMBAI

----- Original Message ----- From: <chairman@sbi.co.in>
To: <dgm.pbpl@sbi.co.in>; <agm2.pbpl@sbi.co.in>
Sent: Friday, March 25, 2011 5:13 PM
Subject: Fw: Faulty anti-poor policy of SBI on Second education loan needs review

----- Forwarded by CHAIRMAN STATE BANK OF INDIA/CORP/SBI/SBG on 03/25/2011
05:18 PM -----

From: Education Loan Task Force ELTF <action2020eltf@gmail.com>

To: Education Loan Task Force ELTF <action2020eltf@yahoogroups.com>, MP Ramasubbu Nella
<ramasubbu@nellaimp.com>, SBI CGM Chennai <cgm.lhoche@sbi.co.in>, dgmpb.lhoche@sbi.co.in, SBI Edu Loan
Ramakrishnan <d.ramakrishnan@sbi.co.in>

Cc: "Chairman, State Bank of India SBI" <chairman@sbi.co.in>, MP Hansraj <hansraj_ahir@rediffmail.com>, "MP T
K Rangarajan`" <tkrcpim@gmail.com>, RBI CGM RPCD B P Vijayendra <bpvijayendra@rbi.org.in>, RBI Deputy
Governor Dr K C Chakrabarty <kcchakrabarty@rbi.org.in>, Ramakrishnan Subbiah <ramksubbiah@yahoo.com>

Date: 03/25/2011 03:35 PM

Subject: Faulty anti-poor policy of SBI on Second education loan needs review

The Chairman
State Bank of India
Mumbai

cc to : The Deputy Governor, RBI, Mumbai

dear all

Last month, we took up an issue with State Bank of India Management to
review their anti-poor and faulty policy of not providing education loan
for PG studies, other than professional courses. Officially, SBI informed
us they would consider sanctioning the loan for PG studies, only if the
earlier loan was sanctioned.

Such faulty policy would cause harm to the poor and brilliant students. We
took up the matter with the SBI Management, RBI and also with the MPs who
are supporting us.

The issue came up, when a student complained to us againt SBI, Nilakootai,
Tamilnadu branch that he was denied edu loan for pursuing PG Studies,
though he obtained excellent marks in the degree course.

SBI, Chennai Circle also confirmed to us in writing that they had such
policy. Immediately, we took up with everybody.

Now, we understand from the student that he got the loan from SBI. We are
not sure, whether SBI has sanctioned the loan, as a special case or have
changed their anti-poor policy.

While on the one side, we are happy that SBI has considered the loan for PG
course to the complaining student, we also appeal to them to review their
policy to support poor and intelligent students (if they had not already
done so). Please see the back correspondences below.

We would appreciate a confirmation from SBI that they have changed the
anti-poor policy.

Srinivasan
Convenor
Education Loan Task Force (ELTF)
Part of Action 2020 Team under India Vision Group
Join the India Vision group to get connected with like minded people
http://groups.yahoo.com/group
/India_Vision_2020/
Also visit www.indiavision2020.org and
http://action2020eltf.blogspot.com/

On Tue, Feb 8, 2011 at 10:39 AM, Education Loan Task Force ELTF <
action2020eltf@gmail.com> wrote:
hi all

We have now received a clarification from SBI that for availing second
education loan, to pursue PG courses, other than professional courses,
the student has to liquidate the first loan.

Normally professional courses mean MBA type of courses. If a student
completes B Tech (through edu loan with SBI) and wants to pursue M Tech
or ME, then according to the rules of SBI and as understood by us based
on the clarification, the student is not eligible for a second loan to
pursue M Tech course.

If he wants second loan, he has to liquidate the loan which he got for B
Tech or wait for liquidation of loan in the normal course (say 7 years).
Only because the student is poor, he avails the loan from the bank.
Asking him to pay the entire mney at a stretch, will drive him to money
lenders. This will defeat the very purpose of the Scheme.

We feel that this will deprive many young poor brilliant students the
opportunity of pursuing higher education, other than professional
courses.

On behalf of ELTF, we are requesting SBI Chairman ro review this
anti-poor policy framed by them and make it open, without restricting to
professional courses only. They can consider the second loan depending
on the merit of individual cases for any approved courses.

Srinivasan
91766 50273
Convenor
Education Loan Task Force (ELTF)
Part of Action 2020 Team under India Vision Group
Join the India Vision group to get connected with like minded people
http://groups.yahoo.com/group
/India_Vision_2020/
Also visit www.indiavision2020.org and
http://action2020eltf.blogspot.com/

---------- Forwarded message ----------
From: <dgmpb.lhoche@sbi.co.in>
Date: Mon, Feb 7, 2011 at 3:33 PM
Subject: Re: Complaint against SBI, Nilakkottai Branch and policy of SBI
for PG Studies
To: action2020eltf@gmail.com

The Branch has followed the current instruction, which provide that the
second loan may be sanctioned , if the first loan is liquidated.
Regards,
C.R.Cauvery
DGM PBU
CHENNAI

-----Education Loan Task Force ELTF wrote: -----
To: RBI CGM RPCD B P Vijayendra <bpvijayendra@rbi.org.in>, SBI CGM
Chennai <cgm.lhoche@sbi.co.in>, SBI PS to GM <pstocgm.lhoche@sbi.co.in>,
MP Ramasubbu Nella <ramasubbu@nellaimp.com>, MP Ramasubbu PS Issac <
jamesisaaac@gmail.com>, dgmpb.lhoche@sbi.co.in, SBI Edu Loan Ramakrishnan
<d.ramakrishnan@sbi.co.in>, "Chairman, State Bank of India SBI" <
chairman@sbi.co.in>
From: Education Loan Task Force ELTF <action2020eltf@gmail.com>
Date: 02/05/2011 09:20AM
cc: SBI Nilakkottai <sbi.00791@sbi.co.in>, Education Loan Task Force ELTF
<action2020eltf@yahoogroups.com>

Subject: Complaint against SBI, Nilakkottai Branch and policy of SBI for
PG Studies

4 Feb 2011

To

The Chief General Manager
State Bank of India
Chennai

Dear Sir

We forward herewith a complaint mail received from Ramakrishnan against
your Nilakkottai Branch. Y0ur Branch has given in writing to the
applicant, that they would provide second education loan only to pursue
professional course in India or abroad and hence they rejected the
application.

While, we do not interfere with the decision of the banks, we want to
ensure that the bank's follow the guidelines properly for the benefit of
brilliant poor students. Hence, we request you to kindly examine this
complaint at senior level and take a suitable decision, based on the
individual merit of the applicant and as per your norms.

More than this issue, we are seriously concerned over the SBI 's rule
that the bank will not grant any second education loan to any other
course, other than for professional courses in India or abroad. Since
your policy is a matter of serious concern for the student community, we
request you to kindly confirm that you will not grant any education loan
for further studies other than for professional course. In such case,
your policy is a faulty one and is against the interest of the poor
students, who want to pursue higher education and take a loan, in other
courses.

We endorse a copy of this mail to the Chairman and to Mr Ramasubbu MP and
to RBI for their information. It is very sad that SBI is following such
unfriendly policy to the students. We request you to kindly review your
second education loan policy, to support the deserving poor students.

Srinivasan
91766 50273
Convenor
Education Loan Task Force (ELTF)
Part of Action 2020 Team under India Vision Group
Join the India Vision group to get connected with like minded people
http://groups.yahoo.com/group
/India_Vision_2020/
Also visit www.indiavision2020.org and
http://action2020eltf.blogspot.com/

---------- Forwarded message ----------
From: Ramakrishnan Subbiah <ramksubbiah@yahoo.com>
Date: Sat, Feb 5, 2011 at 1:46 AM
Subject: Bank loan
To: Loan Query <action2020eltf@gmail.com>

Respected sir,
Sorry for the late reply. Here I submitted the answers for
all questions.
1.How much amount of loan, you got for your degree? What is
the
balance in your loan account, including interest?

Total sanctioned loan amount is Rs. 1, 16,000/- but I
received as per
my requirement only Rs. 96,000/-.

2.What is your grraduation? How much marks you got in your
degree?

BSc agriculture with 74.6% marks

3.Whether you had kept any arrears?

No

4.How much amount of loan, you have applied for education
loan for your MSc

Totally Rs. 88,600/- and Rs. 40,000/- (Approximately) for
laptop.

5.What are the documents, you have submitted to the bank?

. I submitted the following documents are,
1. My Father's Income certificate
2. Land Document copy
3. Jewel details
4. My college and Hostel Bonafide certificate and Fees
structure
5. Primary details asked from the bank.

6.What was the reason for rejection by the bank?

Second loan is only to persue a professional course in
india or abroad

7.Did you meet the regional manager and appealed to him? If
so, what
was the answer given by him.

No sir ,I met my branch manager and field officer. They told
that "we
are sent your request to Regional office Madurai. Then only
we will
sanction the Education loan for you". Finally I receive a
letter from
my Bank manager that is my Education loan was request was
rejected due
to my previous loan.

I'm not rude about this matter sir.just i informed about the
rejection.sorry sir

With Regards,

RAMA KRISHNAN, S

I M.Sc (Agricultural Microbiology)

Tamilnadu Agricultural University,

Coimbatore - 641003

[attachment "BANK LETTER SBI.jpg" removed by PB LHO CHENNAI
DGM/LHO/SBI/SBG]

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sender and does not necessarily reflect that of State Bank group. ---

--- Disclaimer --- The information in this mail is confidential and is intended solely for addressee. Access to this mail by anyone else is unauthorised. Copying or further distribution beyond the original recipient may be unlawful. Any opinion expressed in this mail is that of sender and does not necessarily reflect that of State Bank group. ---

--- Disclaimer --- The information in this mail is confidential and is intended solely for addressee. Access to this mail by anyone else is unauthorised. Copying or further distribution beyond the original recipient may be unlawful. Any opinion expressed in this mail is that of sender and does not necessarily reflect that of State Bank group. ---