The processing of education loans is to become faster soon.

Concerned over the inordinate delay in processing these loans, the Finance Ministry has asked banks to implement online tracking of these applications.

There would also be a system of review by the next higher authority where a loan application is rejected.

In a recent communication to banks and State Level Bankers Committees, the Ministry directed banks to put in place a common grievance redress mechanism at the branch, zonal and head-office levels.

Banks will have to inform applicants about this mechanism at the time of submission of applications.

Also, according to the communication, banks need to ensure that suitable instructions are issued to field-level staff on the disposal of education loans.

There were instances where applications rejected in the initial stages have been accepted subsequently on representations being made, the Ministry observed.

Loans for vocational courses were not being given adequate publicity, the Ministry said, while advising banks to popularise such loans.

It is learnt that the Ministry has revised upwards the disbursal targets in different States and the same has been communicated to SLBCs.

>naga.gunturi@thehindu.co.in

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