West Bengal government directs banks to look into complaints under student credit scheme

Reports suggest that several banks have been accused of "cancelling applications or delaying the processing of loans" under the Student Credit Card programme.

WB Student Credit Card: Students in West Bengal have alleged that lenders are "harassing" them while processing loans under a state-run student credit card scheme. Considering the issue, the government of West Bengal has asked banks to address the complaints. Reports suggest that several banks have been accused of "cancelling applications or delaying the processing of loans" under the Student Credit Card programme. To address the issue the chief secretary conducted a meeting with officials of the state education department, district administrations and banks to address the issue.

Also Read: West Bengal Student Credit Card Scheme 2021 LAUNCHED! Here's all you need to know

"Banks have so far accepted around 6,000 applications. Not only that, some applications were rejected and returned to the district administrations. Chief Secretary HK Dwivedi has already directed officials to form a committee in each district to deal with the issue,” the official informed media.

He further added, Students also alleged that lenders are "seeking information which is not required" to extend advances under the programme.

“The higher education department has asked lenders not to harass students who are seeking loans under the Student Credit Card scheme. Bankers have also been requested to ensure that poor meritorious students are not deprived of it,” the official said.

The state government had, in September, asked district magistrates to address students' complaints against private banks for allegedly seeking collateral from their parents in lieu of extending loans under the programme.

“The banks were directed to take necessary steps to give priority to poor students,” he said. The government also instructed authorities of schools, colleges and universities to organise camps every Monday to promote the credit programme and directed the education department to send a report on the number of students coming to these facilities, the official said.

The Student Credit Card scheme was introduced by the state government to enable beneficiaries to pursue their studies without having any financial constrain. Under the programme, a student from West Bengal can obtain a maximum loan of 10 lakh INR at 4 per cent annual interest from banks with a repayment period of 15 years. The upper age limit of students has been kept as 40 years.

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