 bill no 134 of  2012 the education loan bill, 2012 by shri r thamaraiselvan, mp a billto provide for education loan to students and for matters connected therewithbe it enacted by parliament in the sixty-third year of the republic of india as follows:—1  (1) this act may be called the education loan  act, 2012short title and extent(2) it extends to the whole of indiadefinitions2 in this act, unless the context otherwise requires,—5(a) "bank" means any nationalized or commercial bank and includes a private orforeign bank;(b)  "prescribed" means prescribed by rules made under this act; and (c) "student" means a person who is pursuing any course of study, includingany professional or vocational course in any college or institution or university3 within six months of the commencement of this act, the central government shall formulate a scheme for providing education loan at such rate of interest, as may be prescribed, to students for following purposes, namely:—scheme for education loan to students5(a) pursuing professional courses such as medical, engineering or vocational course or education in any discipline in any college or an institution or a university; and(b) pursuing research in any recognized research institute or universityapplication for loan4  (1) an application for education loan shall be made by a student in the prescribedformat to any branch of a bank in such manner as may be prescribed10(2) an application made under sub-section (1) shall be disposed of within a period of one month from the date of its receipt5 the bank shall made payment directly to the head of the college or institution or university where the student is studying or seeking admissionpayment to be made directly to the head of the institution6 no bank shall:—15(i) refuse an education loan to a student on any ground;no bank shall deny ane d u c a t i o n a l loan(ii) insist on any sort of guarantee, mortgage or surety for the purpose ofdisbursement of loan;(iii) charge interest more than the rate prescribed; (iv) withhold degree/diploma certificates, mark sheets in original; and20(v) initiate recovery process of the loan before the completion of one year ofsecuring a job by a student who has taken an education loanpunishment257 if any bank violates the provisions of section 6, the director or other officer of thebank responsible for the violation, unless he proves that such violation took place without his knowledge or that he exercised all due diligence to prevent it shall be deemed to be guilty of such violation and shall be punished with imprisonment for a term not exceeding one year or a fine which shall be equal to the amount of loan sought by the studentwaiving offloan8 (1) the central government shall formulate a scheme for waiving off such loan, ifa student, even after five years of completing his course, fails to secure any employment30(2) subject to such rules as may be made, the waiving off loans shall be applicableonly to such bona fide students who do not get suitable employment after completing their educationpower tomake rules9 (1) the central government may, by notification in the official gazette, make rulesfor carrying out the purposes of this act3540(2) every rule made under this act shall be laid, as soon as may be after it is made, before each house of parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both the houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule statement  of  objects  and  reasonsit is indeed a welcome step that educational loans are being given to students for pursuing higher education poor students, who could not earlier afford the cost of professional and higher education are also now in a position to pursue higher education because of education loan however, the policy of giving of educational loan is deficient on many counts it has no statutory backing or proper guidelines each bank has its own guidelines and fixes its own criteria for disbursing loan many banks often refuse the same on some silly and technical grounds guarantee and surety is always insisted upon before granting the loan the rate of interest on such loan also varies from bank to bank students are harassed and have to run from pillar to post to get the loan disbursed students pursuing studies in private institutes and seeking admission in management quota are not given loan therefore, it is sought to ensure through the bill that education loan should not be denied to any student any person who violates the guidelines framed for education loan shall be punished so that no bank dares to refuse loan to studentsfurther, many students after completion of their course do not get jobs thus, they are not in a position to repay the loan taken in such cases, a policy or scheme for waiving off loans should also be consideredhence this billnew delhi;r thamaraiselvannovember 6, 2012 financial  memorandumclause 3 of the bill provides for the framing of a scheme for providing educational loans to students clause 8 provides for framing of a scheme for waiving off educational loan if a student fails to secure any employment after completion of his course the bill, therefore, if enacted, will involve expenditure from the consolidated fund of india it is estimated that a sum of rupees two hundred crore will be involved as a recurring expenditure per annum from the consolidated fund of indiaa non-recurring expenditure to the tune of rupees one hundred crore is also likely to be involved memorandum  regarding  delegated  legislationclause 9 of the bill empowers the central government to make rules for carrying out the purposes of the bill as the rules will relate to matters of detail only, the delegation of legislative power is of a normal character lok  sabha———— a billto provide for education loan to students and for matters connected therewith————(shri r thamaraiselvan, mp)gmgipmrnd—3556ls(s3)—29112012