 bill no  49 of  2017 the education loan to students belonging to economically weaker section bill, 2017 by shri at nana patil, mp a billto provide for education loan to students belonging to economically weaker section and for  matters connected therewith  or incidental theretobe it enacted by parliament in the sixty-eighth year of the republic of india as follows:—1 (1) this act may be called the education loan to students belonging to economicallyweaker section act, 2017short title extent and commencement(2) it extends to the whole of india, except the state of jammu and kashmirdefinitions2 in this act, unless the context otherwise requires,—(a) "bank" means any nationalized or commercial bank and includes a private,co-operative or foreign bank;(b) "prescribed" means prescribed by rules made under the act; and5(c) "student" means a person who belongs to economically weaker section andis pursuing any recognized course of study, including any professional or vocational course in any college or institution or university and whose parents' annual income is not more than three lakh and fifty thousand rupeesscheme foreducation loan to students103 the central government shall, within six months of the commencement of this act,formulate a scheme for providing education loan at such rate of interest, as may be prescribed, to the students for the following purposes, namely:—(a) pursuing professional courses such as medical, engineering or vocationalcourse in any discipline in any recognized college or institution or university; and(b) pursuing researchin any recognized research institute or universityapplication for loan154 (1) an application for education loan shall be made by a student to any branch of abank in such manner as may be prescribed(2) an application made under sub-section (1) shall be disposed of within a period ofone month from the date of its receipt5 the bank shall make payment directly to the head of the college or institution oruniversity where the student is studying or seeking admissionbank to pay directly to the institution6 no bank shall,—20(i) refuse ordinarily an education loan to a student on any ground;bank not to deny educational loan to students(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) keep or withhold degree, diploma certificates, mark sheets in original; and25(v) initiate recovery process of the loan before the completion of one year ofsecuring a job by a student who has taken an education loanpunishment307 if any bank violates the provisions of section 6, the chairperson or managingdirector or other officer of the bank responsible for the violation, unless he proves that such violation took place without his knowledge or that he exercised all due diligence to prevent, shall be deemed to be guilty of such violation and punished with imprisonment for a term which may extend upto six months or a fine upto rupees two lakh, or bothwaiving offloan8 (1) the central government shall formulate a scheme for waiving off educationloan, if a student, even after five years of completing his course, fails to secure any employment35(2) subject to such rules as may be made, the waiving off of education loans shall beapplicable only to such bona fide students who do not get 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 the act40(2) every rule made under this act by the central government shall be laid, as soon asmay 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 thesuccessive 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 previously5 done under that rule statement of objects and reasonsthe educational loans are given by banks to students for pursuing higher educationstudents belonging to economically weaker section, 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 education loan is defective on many countssecuring an education loan for the students belonging to economically weaker section is a difficult task, with several banks not keen on lending to students owing to a large number of defaults as a result, the growth rate of education loan has been steadily declining there is no fall in demand for loans, but the restriction is at the supply pointsat present 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 frivolous and technical grounds guarantee and surety are always insisted upon before granting the loan the rate of interest on such loan also varies from bank to bank the students belonging to economically weaker section pursuing studies in private institutions or seeking admission under management quota are not given loantherefore, it is sought to ensure through the bill that education loan should not be denied to any student belonging to economically weaker sections of the society any person who violates the guidelines framed for education loan shall be punished so that no bank dares to refuse loan to students further, 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 of loans has been envisaged in the proposed billhence this billnew delhi;at nana patilfebruary 23, 2017 financial memorandumclause 3 of the bill provides for the framing of a scheme for providing educational loans to students belonging to economically weaker section clause 8 provides for framing of a scheme for waiving off educational loan if, a student fails to secure any employment, five years after completion of this is 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 this 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 belonging to economically weaker section and for  matters connected therewith  or incidental thereto————(shri at nana patil, mp)gmgipmrnd—4844ls(s3)—16-03-2017