Alert Consumers: Legal Queries and Responses

Alert Consumers: Legal Queries and Responses

Alert Consumers: Legal Queries and Responses

Question 1. I made a purchase with a total value of Rs 7983 on November 30, 2023. Despite Flipkart confirming delivery on December 25, 2023, I never received the product. Can I lodge a First Information Report (FIR) against Flipkart for their service deficiency in dispatching an incorrect item in my order? (Deepak)

Answer: The Allahabad High Court has quashed the FIR filed against Flipkart, declaring the company not guilty under criminal law Section 79(2) or 79(3) of the Indian Technology Act 2000 (amended 2008). The court ruled that Flipkart is exempt from liability if actions were taken with ‘due diligence.’ Additionally, Sections 85 and 86 of the Consumer Protection Act of 2019 hold intermediaries responsible for receiving notices on behalf of sellers, providing information, and disclosing their whereabouts to consumers and courts. In this context, Flipkart, being a market-based platform and not an inventory-based e-commerce entity, is deemed not liable for product defects.

Question 2. Must I pay the entire year’s fee despite studying for only half the year? I enrolled in an LLB program at a private college but had to leave after six months due to a family tragedy. The college is insisting on the payment of the full year’s fee. (Amit Parmar)

Answer: In the Supreme Court case of Usmania Islamia Academy vs State of Karnataka, it was established that an institute is permitted to collect fees for one semester and not for the entire course or year. Consequently, the college is not entitled to demand additional payments, even if they cite their rules. Any undertaking that is not in accordance with the law or contradicts Supreme Court orders holds no legal value. Additionally, the college is prohibited from retaining the original certificates of a candidate who decides to leave the college or course. This directive aligns with the UGC Circular of 2007 issued in response to the aforementioned judgment.

Question 3. Is it possible for an individual member to lodge a consumer complaint against a cooperative society? (Harsh Tripathi)

Answer:

  • Indeed, both an individual member and multiple members have the right to file a consumer complaint against a cooperative society.
  • While co-operative society matters are typically addressed through the Registrar of Societies as an arbitrator, Consumer Commissions provide an additional remedy for consumers. It’s noteworthy that the arbitration clause in the Co-operative Societies Act does not prohibit seeking recourse through Consumer Commissions.

Question 4. Can a consumer complaint be filed when a builder constructs a small market complex next to a residential complex, labelling it as a dispensary and gym room? (Pramod)

Answer: Certainly, residents of the housing society have the right to file a complaint regarding the misrepresentation of a small market complex as a dispensary and gym room. It is advisable to verify the approvals from the relevant authorities and raise concerns accordingly. If there is no formal information about such a complex displayed on the project’s website, it could be deemed as unfair and misleading under the Consumer Protection Act of 2019.

Question 5. I have presented all my evidence in court, and the case is now scheduled for the opposite party’s (OP) evidence. However, they have failed to appear for the last three scheduled dates. (Guddu Sasaram Rohtas)

Answer: File an application with the court, requesting to proceed ex parte against the Opposite Party (OP).

Question 6. What distinguishes written arguments from oral arguments? (Mittar Pal Sharma)

Answer: Written arguments constitute a comprehensive presentation of your case, encompassing references to the opposing party’s (OP) stance, supporting evidence, and relevant case law. You have the flexibility to cite legal precedents favoring your position and include citations or case law.

Oral arguments involve presenting the same information to the court, with the added element of the court potentially posing questions while you articulate your case and arguments.

Question 7. An order in favour of my client has been issued in one case, but the same matter is also pending before a civil court. Is this order considered valid, and what implications does it have on the ongoing civil case? (Pawan)

Answer: Immediately withdraw the civil case; once done, this order becomes final. It is not permissible to seek enrichment by pursuing the same claim in two different forums.

Question 8. I enrolled in two courses, but currently, I am exclusively pursuing the regular course and have not participated in any examinations or practical aspects of the distance course at IGNOU. Is there any potential issue with this situation? (Vivek)

Answer: As long as neither of the two courses or degrees is solely based on regular attendance, you can continue to pursue both. It ultimately depends on your approach to managing exam schedules. However, once you are already committed to one course, the other may no longer be a priority.

Question 9. I lost my job due to the actions of the Opposing Party (OP), but I lack evidence such as job records, appointment letters, or salary slips. How can I establish incidental loss in the court proceedings? (Ravi)

Answer: Proving it without documents is challenging. Your affidavit alone will not suffice as secondary evidence unless you can substantiate it with significant facts.

Question 10. Do I qualify for the position of PGT teacher if I completed my MA through distance education from 2021 to 2023 and also pursued regular B.Ed. during the same academic session? (Neha)

Answer:  Two considerations come into play – neither of the degrees should be pursued in regular mode simultaneously, as physical presence at two locations simultaneously is not feasible under UGC guidelines. Additionally, meeting the qualifying criteria for the position determines eligibility. However, other rules or criteria established by your selection board are not explicitly outlined.

Question 11. Attracted by promises from the Country Vacation club, I paid 10,000/- in 2010 after being told I had won a gift and would become a member. Subsequently, I realized my error, but they are refusing to refund the money. (Yash)

Answer:  Examine the terms and conditions you agreed to upon becoming a member. If the membership was on an annual basis, it may be applicable at this point. Nonetheless, refraining from further financial loss has undoubtedly been a prudent decision on your part.

Question 12. The builder is withholding the advance maintenance payment I made for five years, even after the formation of the society, despite having purchased the flat just seven months ago. (Vijay)

Answer:  The builder is responsible for maintenance until possession is handed over to the society. Subsequently, the society takes charge of maintenance affairs. Going forward, you are required to make payments to the society. If any amount differs from what was stipulated in your agreement, you have the right to make a claim.

Question 13. As a PVR Privilege Plus member using the latest version of the Cinema App, I noticed that the Privilege voucher section is empty when attempting to make payment for snacks. (Raj Makkar)

Answer:

  • Reach out to the cinema hall authorities for clarification and rectification.
  • Report your issue to the National Consumer Helpline (NCH) seeking assistance and resolution.
  • If you face deficiencies in services, receive misleading information through apps, or experience enticing practices amounting to unfair trade practices, you have the option to issue a legal notice or file a consumer complaint.

Question 14. A person intends to initiate a medical negligence case directly with the National Commission as their primary complaint. It is advised that the National Commission may not entertain cases with bills less than two crores. However, the individual is aware that their sought compensation exceeds two crores, as they have endured significant suffering, undergone multiple subsequent operations due to negligence, and continue to face ongoing challenges.

Essential considerations:

  1. Is it necessary for him to seek expert opinion?

– Application of “res ipsa loquitur.”

  1. Why can’t he directly file the case before the National Commission?

– Due to an increase in pecuniary jurisdiction:

– District Commission: Cases up to 50 lakh

– State Commission: Cases above 50 lakh to 2 crores

– National Commission: Cases exceeding two crores

With two key aspects at hand:

  1. Addressing the posed inquiries.
  2. Acknowledging procedural modifications implemented in the new Act.

Case No 1

In the case of Neena Aneja & Anr. versus Jai Prakash Associates Ltd, Civil Appeal Nos. 3766-3767 of 2020, decided on 16th March 2021, a significant legal point addressed pertains to pecuniary jurisdiction during the transitional period of the enactment of the Consumer Protection Act 2019.

The Consumer Protection Act 2019 was enacted by Parliament and published in the Gazette of India on 9th August 2019. The provisions of the Act were notified by S.O. 2351(E) dated 15th July 2020, to come into force on 20th July 2020. Additional provisions were brought into force by S.O. 2421(E) dated 23rd July 2020, with effect from 24th July 2020. Given the varied dates of enactment and notification, some consumer commissions began accepting cases based on the new pecuniary jurisdiction set by the Act, while others did so after the official enforcement date.

The Hon’ble Supreme Court, in its analysis, considered the legal position concerning the change of forum based on prior decisions across two-judge benches, three-judge benches, constitutional benches, and rulings from various High Courts. The Court aimed to determine the legislative scheme governing jurisdictional provisions.

The Court concluded that proceedings initiated before the commencement of the Act of 2019 on 20th July 2020 would continue before the forums established under the Act of 1986. This includes the National Commission, State Commissions, and District Commissions, and they would not be transferred based on the pecuniary jurisdiction set for the forums established under the Act of 2019. The decision reflects a careful consideration of the transitional period and ensures continuity in the adjudication of cases based on the relevant jurisdictional framework.

Case No 2

  • ECGC Limited vs Mokul Shriram Epc Jv
  • A. NO. 99210 OF 2021 In Civil Appeal No. 1842 Of 2021
  • Decided On February 15, 2022

Head Note – Condition of payment of the amount for filing appeal shall be governed by the act under which complaint was filed.

Consumer Protection Act, 2019 – Section 67 Proviso – Onerous condition of payment of 50% of the amount awarded will not be applicable to the complaints filed prior to the commencement of the 2019 Act.

1986 Act 2019 Act
23. xx 67. xx
Provided further that no appeal by a person who is required to pay any amount in terms of an order of the National Commission shall be entertained by the Supreme Court unless that person has deposited in the prescribed manner fifty per cent of that amount or rupees fifty thousand, whichever is less. Provided further that no appeal by a person who is required to pay any amount in terms of an order of the National Commission shall be entertained by the Supreme Court unless that person has deposited fifty per cent of that amount in the manner as may be prescribed

 

The question now being examined here is as to whether the present appeal would be governed under the Consumer Protection Act, 2019 [For short, the ‘2019 Act’] or under the erstwhile 1986 Act.

In terms of Section 67 of the 2019 Act, no appeal against the order of National Commission shall be entertained by the Supreme Court unless the person has deposited fifty per cent of the amount required to be paid. Whereas, under the 1986 Act, by virtue of a proviso inserted vide Central Act 62 of 2002 w.e.f. 15.3.2003, the condition was that no appeal shall be entertained by the Supreme Court unless the person who is required to pay the amount deposits fifty per cent of the amount or fifty thousand, whichever is less.

SC Held

“In view of the binding precedents of the Constitution Bench judgments referred to above, we hold that onerous condition of payment of 50% of the amount awarded will not be applicable to the complaints filed prior to the commencement of the 2019 Act. Therefore, the I.A. is allowed.”                                          

Case No 3

  • Narinder Chopra vs Jaiprakash Associates (NC)
  • Consumer Complaint No 3258 0f 2017along with IA 330 of 2021&IA 1130 Of 2021
  • Decided On May 16, 2021

Law Points:

  • Whether pending matters are to be transferred to appropriate commission after enhancement of pecuniary jurisdiction.

NC Held

  • There is no provision for transfer of pending cases in the new Act of 2019.
  • The transitional provisions contained in Sections 31, 45 and 56 expressly indicate that the adjudicatory personnel who were functioning as Members of the District Commission, SCDRC and NCDRC under the erstwhile legislation shall continue to hold office under the new legislation.
  • Section 107 status quo
  • In prior rulings, the NCDRC had interpreted the amendments of 2002, which increased pecuniary jurisdiction, as having prospective effects. Reference can be made to cases such as Southfield Paints and Chemicals Pvt. Ltd. vs New India Assurance Co. Ltd. and Premier Automobiles Ltd. v. Dr. Manoj Ramachandran. In these instances, the NCDRC affirmed that the amendments, which augmented pecuniary jurisdiction, apply prospectively.

Issue-Mandatory BIS Mark

Bureau of Indian Standards Act, 2016, issued Notification dated 21.01.2020, making it mandatory for domestic pressure cooker to bear Standard Mark under a licence from Bureau of Indian Standards.

Facts

  1. Cloudtail India Private Limited was doing e-commerce through Amazon website and listed ‘Amazon Basics Stainless Steel Outer Lid Pressure Cooker, 4 Litre’ on above website and sold 1033 pressure cookers in India after 01.02.2021. These pressure cookers were manufactured by “Zhejiang Supor Company Limited, Damaiyu Economic Investment Zone, Yuhuan, Taizhou, Zhjiang, China” and bears “European Commission Standard” mark as established in the European Union and were imported into India, prior to issue of the Order.
  2. Central Consumer Protection Authority is a statutory authority constituted under Section 10 of the Consumer Protection Act, 2019 and under the power Section 18 of the Act, issued notice dated 29.11.2021 to the company to show cause as it were selling pressure cooker in violation of the Order, which was liable to be held as defective, violative of consumer right and amounts to unfair trade practice, within the meaning of the Act.
  3. The Cloudtail India Private Limited submitted its reply dated 11.01.2022, stating
  • That the pressure cookers in question were manufactured by “Zhejiang Supor Company Limited, Damaiyu Economic Investment Zone, Yuhuan, Taizhou, Zhjiang, China” and conforms to the “European Commission Standard” mark as established in the European Union Directives-2014/68/EU granted by TUV SUD, valid up to 13.12.2030 and holds a valid certification of conformance.
  • That the product is of requisite quality, pre-shipment inspection by a nominated third-party inspection agency is carried out and product is imported after satisfaction. There was no complaint, related to safety of the pressure cooker since its introduction in the market.
  • That import of this product in India was suspended prior to 01.02.2021, i.e. enforcement of the Order.
  • The Order mandates domestic pressure cooker to bear BIS mark by the manufacturer and is not applicable for an importer.
  • The Frequently Asked Questions, as addressed by the Bureau of Indian Standard (uploaded in February 2019 and again on 14.11.2019), explicitly state that if a product was imported to India before the last date of implementation or manufactured by domestic producers before the same date, it is permissible to sell such products.
  • The pressure cooker is neither ‘defective’ within the meaning of Section 2(10) nor the appellant has committed any ‘unfair trade practice’ within the meaning of Section 2(47) of the Act. The product meets all objective criteria of Bureau of Indian Standards Act, 2016 and Consumer Protection Act, 2019 and the notice is liable to be discharged.
  • That a test report dated 15.02.2022, conducted by Delhi Test House (a National Accreditation Board for Testing and Calibration Laboratory), along with a Certificate bearing the “European Commission Standard” mark in accordance with the European Union Directives 2014/68/EU, granted by TUV SUD, is available.

Action by CCPA

Authority called for reports in connection with sold cookers without BIS Mark.

  • Director General Investigation, vide its report dated 04.07.2022 confirmed that product sold without mark after enforcement of the Order, manufacture, import, sell, distribution, hire, lease, store or exhibit for sale is violative of Section 17 of Bureau of Indian Standards Act, 2016.
  • Department for Promotion of Industry and Internal Trade, vide its report dated. 28.09.2022 confirmed that no such exemption was issued by it, permitting sale of pressure cooker in the country, imported prior to the date of enforcement of the Order, which has no BIS mark.

Order by CCPA

  • By virtue of its order dated 04.11.2022, the Central Consumer Protection Authority determined that following the implementation of the Order on 01.02.2021, all domestically sold pressure cookers in India must adhere to IS 2347:2017. Non-compliance will be subject to scrutiny.
  • The pressure cookers which do not conform to IS 2347 :2017 are liable to be held as defective within the meaning of Section 2(10) of the Act and violative of the consumer’s right as defined under Section 2(9) of the Act.
  • Admittedly, the appellant had sold 1033 pressure cookers after 01.02.2021, which did not conform IS 2347 :2017. The Cloudtail India Private Limited is directed to recall 1033 pressure cookers, sold by the company in the country, refunding its price to the consumers within 45 days and a penalty of Rs.100000/- has been imposed upon it for selling the pressure cooker, in violation of Quality Control Order, 2020. Hence the present appeal has been filed before Apex Commission (NC) for adjudication.

Stand of appellant company before NC

The company restated its position in the appeal, as mentioned earlier. Nevertheless, the appellant company also included the assertion that the Central Consumer Protection Authority’s finding labelling the pressure cooker as ‘defective’ due to the absence of the ISI mark is legally questionable. Furthermore, it argued that any violation of the Domestic Pressure Cooker (Quality Control) Order, 2020 should fall under the purview of the Bureau of Indian Standards Act, 2016, rather than the Consumer Protection Act, 2019.

Analysis by National Commission

‘Consumer Rights’ as defined under Section 2 (9) includes

  • The right to be protected against the marketing of goods, products or services which are hazardous to life and property.
  • The right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices.
  • The right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices.
  • The right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate fora.
  • The right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and
  • The right to consumer awareness.

‘Defect’ as defined under Section 2(10) of the Act is quoted below:

“defect” means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods or product and the expression “defective” shall be construed accordingly.”

Observations by the National Commission

Section 16 of the Bureau of Indian Standards Act, 2016 mandates the compulsory use of the standard mark. With the enforcement of the Quality Control Order, 2020, the use of the standard mark has become obligatory. Despite a product bearing the European Commission Standard Marks or satisfying the norms of the Bureau of Indian Standard in subsequent test reports, consumer rights must also be considered. Consumers have the right to purchase products with the BIS mark only after 01.02.2021. If the BIS mark is not affixed or certified, and the product is sold, it amounts to a violation of consumer rights, especially considering the mandatory requirement of the standard mark after the implementation of the Domestic Pressure Cooker (Quality Control) Order, 2020.

Supreme Court Verdict  

Various earlier judgments on the issue:

  • Sumat Prasad Jain vs Sheojanam Prasad (Dead) & Ors (1973) 1 SCC 56
  • Delhi High Court in Bottled Water Processor Association vs Union of Inida, 2010
  • SCC Online Delhi 2038 and Andhra Pradesh High Court in Sri Seetharamanjaneya Swamyvari Seva Sangam vs Superintending Engineer, APSPDCL, 2015 SCC Online Hyd. 335

Above judgments highlighted the significance of BIS standards and held that people at large will be put to risk and public interest would be jeopardised if the safety standards are not complied with.

CCPA holds power under Section 18 of the Consumer Protection Act, 2019 and authority can exercise its power suo moto and to protect the consumers’ interest it can pass any suitable order. It cannot be said that it was without jurisdiction.

There is no evidence of procedural irregularities in the issuance of the order by CCPA. Subsequent to the commencement of the proceedings, a report dated 04.07.2022 has been acquired from the Director General (Investigation). The appellant has been granted a comprehensive opportunity for a hearing, including notice and access to the report.

CCPA’s order stands confirmed.

A Comprehensive Comparison of Education Loans from Banks

A Comprehensive Comparison of Education Loans from Banks

A Comprehensive Comparison of Education Loans from Banks

Embarking on higher education often encounters financial hurdles for students and their families. Education loans from diverse banks in India play a pivotal role, acting as a lifeline to empower aspiring scholars in achieving their academic aspirations. This article delves into a detailed comparison of education loans from different banks, shedding light on eligibility criteria, interest rates, repayment options, and additional benefits.

 Subas Tiwari

In India, education loans are tailored financial products aimed at aiding students and their families in funding the expenses associated with higher education. These loans, offered by banks, financial institutions, and non-banking financial companies (NBFCs), extend support to students pursuing various courses, both domestically and internationally. Covering a spectrum of educational costs such as tuition fees, accommodation, books, travel, and related expenses, education loans come with diverse features and benefits.

 Common Features and Benefits of Education Loans

  1. Loan Coverage:
    • Encompasses a wide array of expenses, including tuition fees, examination fees, library fees, accommodation, travel, and related costs.
  2. Varied Courses and Institutions:
    • Available for undergraduate, postgraduate, vocational, and professional programs at recognized institutions in India and abroad.
  3. Loan Amount:
    • Varies based on the course, institution, and estimated expenses, subject to the policies of the lending institution.
  4. Interest Rates:
    • Competitive rates with options for fixed and floating interest rates based on borrower preferences.
  5. Moratorium Period:
    • Offers a grace period covering the course duration and a few months afterward before the commencement of repayment.
  6. Repayment Tenure:
    • Flexible tenure options allowing borrowers to choose plans aligning with their financial capabilities.
  7. Collateral and Security:
    • Requirement varies with the loan amount; some loans may be offered without collateral up to a specific threshold.
  8. Tax Benefits:
    • Interest paid on education loans is eligible for tax deductions under Section 80E of the Income Tax Act.
  9. Repayment Options:
    • Various options such as equated monthly instalments (EMIs), step-up EMIs, and flexible repayment plans.
  10. Prepayment Option:
    • Some loans permit prepayments without penalties, facilitating a reduction in the overall interest burden.
  11. Online Application:
    • Many lenders offer convenient online application facilities, streamlining the process.
  12. Skill Development Loans:
    • Specific loans cater to skill development courses to meet the growing demand for vocational training.
  13. Co-Borrower Option:
    • Including a co-borrower, such as parents or guardians, can enhance loan approval chances and lead to better terms.
  14. Insurance Options:
    • Certain lenders provide insurance plans covering borrowers in unexpected events, adding an extra layer of financial security.
  15. Government Initiatives:
    • Government-sponsored schemes and subsidy programs may offer additional benefits, making education loans more accessible.
  16. Loan Counselling:
    • Lenders may provide counselling sessions to guide borrowers through the application process and address queries.
  17. Bridge Financing:
    • Education loans serve as a bridge financing option, ensuring financial constraints don’t hinder academic aspirations.
  18. Competitive Atmosphere:
    • The competitive landscape in the education loan market often leads to improved features and benefits.
  19. Networking Opportunities:
    • Some lenders may offer networking opportunities, connecting borrowers with alumni or industry professionals for guidance.

Understanding these features and benefits is crucial for students and their families to make informed decisions when considering education loans. It’s recommended to thoroughly compare offerings from different lenders to find the most suitable option based on individual needs and circumstances.

Eligibility Criteria and Documentation

Eligibility criteria and documentation requirements for education loans in India may slightly differ among lenders. However, common criteria and documents include:

Eligibility Criteria:

  1. Nationality:
    • Generally open to Indian citizens, with some lenders extending loans to Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs).
  2. Age:
    • Typically falls within a specific range, often between 16 and 35 years.
  3. Academic Qualifications:
    • Admission to a recognized course in a recognized institution, either in India or abroad.
  4. Admission Confirmation:
    • Proof of admission or a confirmation letter from the educational institution.
  5. Co-Borrower:
    • Preferably a co-borrower, usually a parent or guardian, with stable income and good credit history.
  6. Creditworthiness:
    • A good credit score is often crucial for loan approval.
  7. Collateral:
    • Depending on the loan amount, lenders may require collateral in the form of property, fixed deposits, or other acceptable assets.

Documentation Required:

  1. Identity Proof:
    • Passport, Aadhar card, Voter ID, or any government-issued identity document.
  2. Address Proof:
    • Aadhar card, utility bills, or documents indicating permanent and current addresses.
  3. Admission Letter:
    • Confirmation of admission to the chosen course and institution.
  4. Academic Records:
    • Mark sheets and certificates of qualifying exams.
  5. Co-Borrower’s Proof:
    • Identity and address proof of the co-borrower (usually a parent or guardian).
  6. Income Proof of Co-Borrower:
    • Salary slips, income tax returns, or documents verifying the co-borrower’s income.
  7. Bank Statements:
    • Typically, the latest six months’ bank statements for both the borrower and co-borrower.
  8. Photographs:
    • Passport-sized photographs of the borrower and co-borrower.
  9. Collateral Documents:
    • If collateral is required, documents related to the pledged property or assets.
  10. Loan Application Form:
    • Complete and signed application form provided by the lender.
  11. Educational Documents:
    • Previous academic records, certificates, and proof of qualifying exams.
  12. Any Other Documents:
    • Lenders may request additional documents based on their specific requirements.

It’s important to note that documentation and eligibility criteria may vary among lenders. Applicants are advised to check with the respective financial institution for the most accurate and up-to-date information. Maintaining clear and organized documentation can streamline the loan application process. 

Government Initiatives for Education Loans

Several government initiatives in India aim to promote education and facilitate access to education loans. Key initiatives include:

  1. Vidya Lakshmi Portal:

An initiative by the Ministry of Finance and the Department of Higher Education, it provides a common platform for students to apply for education loans from multiple banks. Features include a single-window platform, information on loan schemes, a common application form, and online document upload.

Key Features:

  • Single-Window Platform: Vidya Lakshmi serves as a one-stop platform for students seeking education loans, providing access to multiple loan schemes from various banks through a single interface.
  • Information on Loan Schemes: The portal offers comprehensive information about different education loan schemes provided by participating banks, including details on interest rates, repayment options, and eligibility criteria.
  • Common Application Form: Students can fill out a common education loan application form on the Vidya Lakshmi Portal, simplifying the application process.
  • Tracking Application Status: Applicants can track the status of their loan application in real-time through the portal.
  • Facility for Co-Borrower: The portal allows students to include co-borrowers (usually parents or guardians) in the application, enhancing the chances of loan approval.
  • Dashboard for Banks: Participating banks have access to a dashboard where they can view, and process loan applications received through the portal.
  • Upload Documents Online: Applicants can upload necessary documents directly to the portal, making the application process more convenient.
  • Educational Loan Calculator: Vidya Lakshmi provides an online calculator to help students estimate the EMI (Equated Monthly Instalment) for their education loans.

Steps to Apply on Vidya Lakshmi Portal:

  1. Registration: Students need to register on the Vidya Lakshmi Portal by providing basic details such as name, email address, and mobile number.
  2. Login: Once registered, students can log in to the portal using their credentials.
  3. Create a Student Profile: Students need to create a profile by entering personal, academic, and loan-related details.
  4. Search for Loan Schemes: Students can search for education loan schemes offered by various banks on the portal.
  5. Fill Common Application Form (CAF): After selecting a loan scheme, students can fill out the Common Application Form (CAF) with necessary details.
  6. Upload Documents: Applicants can upload the required documents directly to the portal.
  7. Submit Application: Once all details are entered and documents uploaded, students can submit their loan application through the portal.
  8. Track Application Status: Students can track the status of their loan application on the portal.

Participating Banks: The Vidya Lakshmi Portal collaborates with various banks and financial institutions across India, including State Bank of India (SBI), Punjab National Bank (PNB), Axis Bank, Canara Bank, and more.

 

  1. Interest Subsidy on Education Loans:
    • The Central Government provides interest subsidies for specific categories of students, such as the Central Sector Interest Subsidy (CSIS) Scheme.
  2. Pradhan Mantri Vidya Lakshmi Karyakram (PMVLK):
    • A scheme aimed at providing education loans to students from economically weaker sections, encouraging collateral-free loans up to Rs. 7.5 lakh.
  3. Credit Guarantee Fund Scheme for Education Loans (CGFSEL):
    • Initiated by the Ministry of Education, it provides a guarantee for education loans, reducing the risk for banks and encouraging collateral-free loans.
  4. Model Education Loan Scheme:
    • Formulated by the Indian Banks’ Association (IBA), this model aims to standardize the terms and conditions of education loans.
  5. Skill Development Loan Scheme:
    • Launched by the National Skill Development Corporation (NSDC), it provides loans for individuals seeking to enhance their skills through vocational training programs.
  6. National Minorities Development and Finance Corporation (NMDFC):
    • Offers education loans to students belonging to minority communities at concessional interest rates.
  7. Padho Pardes:
    • Targeted at students from minority communities pursuing higher education abroad, providing interest subsidies on loans for overseas education.
  8. Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies:
    • Provides interest subsidy on educational loans for overseas studies to students belonging to scheduled castes, other backward classes, economically backward classes, and de-notified tribes.
  9. Prime Minister’s Scholarship Scheme (PMSS):
    • Provides financial assistance for education to the dependent wards and widows of ex-servicemen and ex-coast guard personnel, including education loans.

Students interested in these benefits should check specific eligibility criteria and guidelines for each scheme. Staying updated with government initiatives is crucial for accessing the latest support measures.

 

 

Compare Education Loan Interest Rates & Processing Fees

Banks

Interest Rates

Processing Fees

Union Bank of India 

8.15% p.a. to 12.55% p.a.

Nil

State Bank of India

8.15% to 11.15% p.a.

No charged required for loan amount below Rs.20 lakh

Loan amount above Rs.20 lakh: Rs.10,000 (plus taxes)

 

Punjab National Bank

4% p.a. to 11.25% p.a.

Nil

IDFC FIRST Bank

10% p.a. to 15% p.a.

Up to 1.5% of the loan amount

Bank of Baroda

8.55% p.a. to 12.50% p.a.

No processing charges up to Rs.7.50 lakh

1% of loan amount up to Rs.10,000

 

Canara Bank

8.60% p.a. to 11.35% p.a. 

0.50% of sanctioned limit (Max. Rs.20,000)

Bank of Maharashtra 

9.45% p.a. to 11.30% p.a.

Nil

HDFC

9.50% p.a. onwards

Not specified

Indian Overseas Bank

9.75% p.a. to 13.3% p.a. 

Not specified

ICICI Bank 

9.50% p.a. to 14.75% p.a.

Up to 2% plus GST

Karnataka Bank

10.02% p.a. to 12.92% p.a.

Not specified

Tamilnad Mercantile Bank

11.60% p.a. to 12.85% p.a.

No processing charge for studies in India

1% of the loan amount for studies in abroad

 

Karur Vysya Bank

9.99% p.a. to 13.98% p.a.

Nil

Axis Bank

13.70% p.a. to 15.20% p.a.

2% of the loan amount plus GST

IDBI Bank

8.50% p.a. to 11.10% p.a.

Not specified

Bank of India

10.95% p.a. to 11.75% p.a. 

Study in India: Nil

Study in abroad: Rs.5,000

 

UCO Bank

9.7% p.a. to 13.10% p.a.

Not specified

Federal Bank

12.55% p.a. onwards

Not specified

Kotak Mahindra Bank

Up to 16% p.a.

Nil

Interest Rates & Processing Fees are sourced from https://www.bankbazaar.com as on 05th February 2024

Here are the steps you can follow to apply for an education loan online:

Step 1: Research and Compare

Research Lenders:

    • Explore different banks, financial institutions, and NBFCs offering education loans. Compare interest rates, repayment options, and additional benefits.

 

 

Eligibility Check:

    • Check the eligibility criteria of various lenders to ensure you meet the requirements.

Step 2: Choose the Right Loan

Select the Course and Institution:

    • Identify the course and institution you want to pursue, as this will influence the loan amount and eligibility.

Loan Amount Calculation:

    • Calculate the approximate loan amount you need, considering tuition fees, living expenses, and other related costs.

Step 3: Collect Documents

Gather Necessary Documents:

    • Collect all required documents, including identity proof, address proof, admission letter, academic records, co-borrower details, income proof, and any other documents specified by the lender.

Step 4: Online Application

Visit the Lender’s Website:

    • Go to the official website of the chosen lender.

Navigate to the Education Loan Section:

    • Look for the education loan section on the website.

Fill in the Online Application Form:

    • Complete the online application form with accurate details. Provide all required information, including personal details, academic details, and financial information.

Upload Documents:

    • Scan and upload the necessary documents as per the lender’s requirements.

Co-Borrower Details:

    • Enter details of the co-borrower, if applicable.

Review and Submit:

    • Review the information provided and submit the online application form.

Step 5: Application Processing

Application Processing:

    • Once the application is submitted, the lender will process the application and may contact you for additional information if needed.

Step 6: Loan Approval

Loan Approval and Offer Letter:

    • If your application is approved, the lender will provide an offer letter specifying the loan amount, interest rate, terms, and conditions.

Step 7: Acceptance and Disbursement

Accept the Offer:

    • After reviewing the offer, accept it if you find the terms favourable.

Verification and Disbursement:

    • The lender will verify the details and disburse the loan amount directly to the educational institution or to your account, as per their process.

Step 8: Repayment

Moratorium Period:

    • Make note of the moratorium period during which you are not required to make repayments.

Start Repayment:

    • Repayment typically begins after the completion of the course or a specified moratorium period.

Additional Tips:

  • Stay Informed:
    • Keep track of your application status by logging into the lender’s portal or contacting their customer service.
  • Read Terms and Conditions:
    • Thoroughly read and understand the terms and conditions outlined in the loan agreement before accepting the offer.
  • Seek Guidance:
    • If you have any doubts or concerns, don’t hesitate to seek guidance from the lender’s customer service or visit the nearest branch.

Remember that the process may vary slightly among different lenders, and it’s crucial to follow the specific instructions provided by the chosen financial institution.

30 Tips for Education Loan Applicants in India

  1. Research Lenders:
    • Explore offerings from banks, financial institutions, and NBFCs; compare interest rates and benefits.
  2. Understand Eligibility:
    • Review eligibility criteria to ensure alignment.
  3. Check Course and Institution:
    • Confirm coverage for your specific course and institution.
  4. Loan Amount Assessment:
    • Borrow only what’s necessary for tuition, accommodation, and essential expenses.
  5. Explore Government Schemes:
    • Investigate government-sponsored schemes and interest subsidies.
  6. Compare Interest Rates:
    • Understand fixed vs. floating rates and choose based on financial strategy.
  7. Repayment Tenure:
    • Consider tenure impact on EMIs and overall interest payments.
  8. Explore Collateral Options:
    • Assess collateral requirements and options for loans without collateral.
  9. Moratorium Period:
    • Be aware of the grace period before repayment begins.
  10. Evaluate Repayment Plans:
    • Explore different plans and choose based on future financial expectations.
  11. Check for Prepayment Penalties:
    • Inquire about penalties for early repayment.
  12. Interest-Only Repayment:
    • Check if interest-only payments are allowed during the moratorium.
  13. Research Tax Benefits:
    • Understand tax benefits under Section 80E of the Income Tax Act.
  14. Check Processing Fees:
    • Inquire about processing fees and compare among lenders.
  15. Maintain Good Credit Score:
    • A good credit score enhances approval chances and may result in lower rates.
  16. Apply for Scholarships:
    • Explore scholarship options to reduce financial burden.
  17. Keep Academic Records Ready:
    • Have all academic records and admission letters ready.
  18. Evaluate Co-Borrower Options:
    • Consider including a co-borrower for a stronger application.
  19. Read Loan Agreement Thoroughly:
    • Understand terms and conditions before signing.
  20. Stay Informed on Interest Rate Changes:
    • Be aware of interest rate changes and their impact.
  21. Establish Communication Channels:
    • Maintain open communication with the lender.
  22. Attend Loan Counselling Sessions:
    • Attend sessions to clarify doubts and gain insights.
  23. Build Financial Literacy:
    • Understand financial concepts and investment options.
  24. Have a Contingency Plan:
    • Plan for unforeseen circumstances affecting repayment.
  25. Explore Insurance Options:
    • Evaluate insurance plans offered by lenders.
  26. Use Online Loan Calculators:
    • Estimate EMIs and assess financial impact using online calculators.
  27. Build a Budget:
    • Create a budget for all expenses to manage finances effectively.
  28. Network with Alumni:
    • Connect with alumni for insights into managing finances during studies.
  29. Plan for Job Placement:
    • Have a plan for job placement post-education.
  30. Seek Financial Counselling:
    • Seek counselling for well-informed decisions.

Remember, each student’s financial situation is unique, so tailor these tips to suit your specific needs and circumstances. Always seek advice from financial experts if needed.

CCPA has Jurisdiction to Initiate Proceeding Suo Moto against Enterprise

CCPA has Jurisdiction to Initiate Proceeding Suo Moto against Enterprise

CCPA has Jurisdiction to Initiate Proceeding Suo Moto against Enterprise

Case title: Cloudtail India Private Limited. Versus Central Consumer Protection Authority

CCPA Appeal No. 4 Of 2022 (Against the Order dated 04/11/2022 in Complaint No. J-25/72/2021 of the CCPA DELHI)

Cloudtail India Private Limited Instructed by CCPA to Retrieve 1033 Pressure Cookers, Refund Consumers within 45 Days, and Faces a Rs.100,000/- Penalty for Breaching Quality Control Order, 2020.

This marks the inaugural directive of its nature by CCPA since the implementation of the Consumer Protection Act 2019, a move that has been contested before the supreme consumer commission, challenging CCPA’s jurisdiction. Given that this is the first order from the newly established entity under the Act of 2019, its significance is noteworthy. 

Dr Prem Lata Legal Head VOICE

Issue-Mandatory BIS Mark

Bureau of Indian Standards Act, 2016, issued Notification dated 21.01.2020, making it mandatory for domestic pressure cooker to bear Standard Mark under a licence from Bureau of Indian Standards.

Facts

  1. Cloudtail India Private Limited was doing e-commerce through Amazon website and listed ‘Amazon Basics Stainless Steel Outer Lid Pressure Cooker, 4 Litre’ on above website and sold 1033 pressure cookers in India after 01.02.2021. These pressure cookers were manufactured by “Zhejiang Supor Company Limited, Damaiyu Economic Investment Zone, Yuhuan, Taizhou, Zhjiang, China” and bears “European Commission Standard” mark as established in the European Union and were imported into India, prior to issue of the Order.
  2. Central Consumer Protection Authority is a statutory authority constituted under Section 10 of the Consumer Protection Act, 2019 and under the power Section 18 of the Act, issued notice dated 29.11.2021 to the company to show cause as it were selling pressure cooker in violation of the Order, which was liable to be held as defective, violative of consumer right and amounts to unfair trade practice, within the meaning of the Act.
  3. The Cloudtail India Private Limited submitted its reply dated 11.01.2022, stating
  • That the pressure cookers in question were manufactured by “Zhejiang Supor Company Limited, Damaiyu Economic Investment Zone, Yuhuan, Taizhou, Zhjiang, China” and conforms to the “European Commission Standard” mark as established in the European Union Directives-2014/68/EU granted by TUV SUD, valid up to 13.12.2030 and holds a valid certification of conformance.
  • That the product is of requisite quality, pre-shipment inspection by a nominated third-party inspection agency is carried out and product is imported after satisfaction. There was no complaint, related to safety of the pressure cooker since its introduction in the market.
  • That import of this product in India was suspended prior to 01.02.2021, i.e. enforcement of the Order.
  • The Order mandates domestic pressure cooker to bear BIS mark by the manufacturer and is not applicable for an importer.
  • The Frequently Asked Questions, as addressed by the Bureau of Indian Standard (uploaded in February 2019 and again on 14.11.2019), explicitly state that if a product was imported to India before the last date of implementation or manufactured by domestic producers before the same date, it is permissible to sell such products.
  • The pressure cooker is neither ‘defective’ within the meaning of Section 2(10) nor the appellant has committed any ‘unfair trade practice’ within the meaning of Section 2(47) of the Act. The product meets all objective criteria of Bureau of Indian Standards Act, 2016 and Consumer Protection Act, 2019 and the notice is liable to be discharged.
  • That a test report dated 15.02.2022, conducted by Delhi Test House (a National Accreditation Board for Testing and Calibration Laboratory), along with a Certificate bearing the “European Commission Standard” mark in accordance with the European Union Directives 2014/68/EU, granted by TUV SUD, is available.

Action by CCPA

Authority called for reports in connection with sold cookers without BIS Mark.

  • Director General Investigation, vide its report dated 04.07.2022 confirmed that product sold without mark after enforcement of the Order, manufacture, import, sell, distribution, hire, lease, store or exhibit for sale is violative of Section 17 of Bureau of Indian Standards Act, 2016.
  • Department for Promotion of Industry and Internal Trade, vide its report dated. 28.09.2022 confirmed that no such exemption was issued by it, permitting sale of pressure cooker in the country, imported prior to the date of enforcement of the Order, which has no BIS mark.

Order by CCPA

  • By virtue of its order dated 04.11.2022, the Central Consumer Protection Authority determined that following the implementation of the Order on 01.02.2021, all domestically sold pressure cookers in India must adhere to IS 2347:2017. Non-compliance will be subject to scrutiny.
  • The pressure cookers which do not conform to IS 2347 :2017 are liable to be held as defective within the meaning of Section 2(10) of the Act and violative of the consumer’s right as defined under Section 2(9) of the Act.
  • Admittedly, the appellant had sold 1033 pressure cookers after 01.02.2021, which did not conform IS 2347 :2017. The Cloudtail India Private Limited is directed to recall 1033 pressure cookers, sold by the company in the country, refunding its price to the consumers within 45 days and a penalty of Rs.100000/- has been imposed upon it for selling the pressure cooker, in violation of Quality Control Order, 2020. Hence the present appeal has been filed before Apex Commission (NC) for adjudication.

Stand of appellant company before NC

The company restated its position in the appeal, as mentioned earlier. Nevertheless, the appellant company also included the assertion that the Central Consumer Protection Authority’s finding labelling the pressure cooker as ‘defective’ due to the absence of the ISI mark is legally questionable. Furthermore, it argued that any violation of the Domestic Pressure Cooker (Quality Control) Order, 2020 should fall under the purview of the Bureau of Indian Standards Act, 2016, rather than the Consumer Protection Act, 2019.

Analysis by National Commission

‘Consumer Rights’ as defined under Section 2 (9) includes

  • The right to be protected against the marketing of goods, products or services which are hazardous to life and property.
  • The right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices.
  • The right to be assured, wherever possible, access to a variety of goods, products or services at competitive prices.
  • The right to be heard and to be assured that consumer’s interests will receive due consideration at appropriate fora.
  • The right to seek redressal against unfair trade practice or restrictive trade practices or unscrupulous exploitation of consumers; and
  • The right to consumer awareness.

‘Defect’ as defined under Section 2(10) of the Act is quoted below:

“defect” means any fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law for the time being in force or under any contract, express or implied or as is claimed by the trader in any manner whatsoever in relation to any goods or product and the expression “defective” shall be construed accordingly.”

Observations by the National Commission

Section 16 of the Bureau of Indian Standards Act, 2016 mandates the compulsory use of the standard mark. With the enforcement of the Quality Control Order, 2020, the use of the standard mark has become obligatory. Despite a product bearing the European Commission Standard Marks or satisfying the norms of the Bureau of Indian Standard in subsequent test reports, consumer rights must also be considered. Consumers have the right to purchase products with the BIS mark only after 01.02.2021. If the BIS mark is not affixed or certified, and the product is sold, it amounts to a violation of consumer rights, especially considering the mandatory requirement of the standard mark after the implementation of the Domestic Pressure Cooker (Quality Control) Order, 2020.

Supreme Court Verdict  

Various earlier judgments on the issue:

  • Sumat Prasad Jain vs Sheojanam Prasad (Dead) & Ors (1973) 1 SCC 56
  • Delhi High Court in Bottled Water Processor Association vs Union of Inida, 2010
  • SCC Online Delhi 2038 and Andhra Pradesh High Court in Sri Seetharamanjaneya Swamyvari Seva Sangam vs Superintending Engineer, APSPDCL, 2015 SCC Online Hyd. 335

Above judgments highlighted the significance of BIS standards and held that people at large will be put to risk and public interest would be jeopardised if the safety standards are not complied with.

CCPA holds power under Section 18 of the Consumer Protection Act, 2019 and authority can exercise its power suo moto and to protect the consumers’ interest it can pass any suitable order. It cannot be said that it was without jurisdiction.

There is no evidence of procedural irregularities in the issuance of the order by CCPA. Subsequent to the commencement of the proceedings, a report dated 04.07.2022 has been acquired from the Director General (Investigation). The appellant has been granted a comprehensive opportunity for a hearing, including notice and access to the report.

CCPA’s order stands confirmed.

Unmasking Air Pollution’s Impact on Pulmonary Health

Unmasking Air Pollution’s Impact on Pulmonary Health

Unmasking Air Pollution’s Impact on Pulmonary Health

Over the past few decades, air pollution and climate change have become major global concerns. Air pollution has many detrimental effects that pose a threat to global public health in terms of significant disease burden as well as mortality. It is disturbing that severe air pollution is increasing at an alarming rate, especially in India, where major cities like New Delhi and other urban areas are noted for being extremely polluted. The acceleration of activities linked to increased urbanization, transportation, and industrialization are the main sources of this pollution spike1,2. As per current statistics of the World Health Organization (WHO), the ambient air pollution combined with household air pollution causes approximately 6.7 million premature deaths each year in low- and middle-income nations, and 9 million fatalities worldwide1,3.

Dr. Neeraj Mahajan, Scientist, AIIMS, New Delhi

One important indicator of the level of pollution is the Air Quality Index (AQI). India faces significant challenges related to poor air quality as majority of the metropolitan cities in India have a high AQI score due to continuously increasing air pollution. According to IQAir4, 14 out 20 world’s most polluted cities are located in India. As a quickly developing nation with an expanding population, India suffers from extreme air pollution. This problem is mostly caused by factors such as emissions from vehicles, industrial activities, and biomass burning. Sadly, exposure to pollutants like particulate matter (PM2.5 and PM10) and nitrogen dioxide (NO2) can cause severe respiratory issues, cardiovascular diseases, and even premature deaths. Although strict regulations and initiatives such as the National Clean Air Programme, have been implemented by government to reduce air pollution, more comprehensive strategies are needed. Thus, this issue needs to be addressed to safeguard the public health and the environment.

The broad spectrum of health effects primarily consists of less severe effects like upper respiratory tract distress to a consistent array of pulmonary and cardio-respiratory disorders, such as asthma and acute respiratory tract infection in children under five, and lung cancer and chronic bronchitis in adults.  The most common consequences of brief exposure to air pollution are coughing, eyes and nose irritations, wheezing, and allergies that manifest into serious conditions like asthma, and Chronic Obstructive Pulmonary Disease (COPD). This leads to an increase in morbidity index due to higher rate of hospitalization. While prolonged exposure leads to pulmonary dysfunctionality in addition to other cardiac issues and results in shorter life span of the individual1.2.

Moreover, with adverse effects on immune functionality through development of various health conditions, such as pneumonia, asthma, diabetes, and cardio-respiratory diseases, the affected individuals can become prone to PM2.5 and PM10 as they can penetrate to internal spaces due to their small size causing further respiratory disorders. Meanwhile, significant impact on pulmonary health is also influenced by factors such as season, time, country and region of air pollutants exposure1. Long term occupational interface with various pollutants in industrial settings as well as continuous exposure to indoor air pollution from cooking fuels, such as biomass, animal dung, and coal exacerbate respiratory issues in adults5.

Children in comparison to adults are more susceptible to respiratory ailments due to their higher vulnerability to air pollutants and subsequent lung function development. Impeded lung growth and adverse effect on lung function with development of exacerbated asthma, bronchitis and infections might occur on enhanced exposure to air pollution during childhood. Studies evaluating assessment of pulmonary function in children with its extension into adulthood considering air pollution exposure, and disease impact or both may provide better insights on effects of air pollution on lung functionality. In addition to aforementioned, air pollution has been associated with increased risks of low birth weight, premature birth, and developmental issues in a child’s respiratory system. Air pollution mitigation strategies both at larger strata like structural reforms and regulations at national, regional, and local levels, and local measures such as minimizing exposure to air pollution at home and during school hours are necessary steps for reducing the impact of air pollution on child’s well-being6. Some common ways to reduce air pollution may include- promoting cleaner energy sources, improving air quality monitoring systems, reviewing industry and vehicle emission standards, and raising public awareness about the health risks associated with air pollution and how to prevent them.

References:

  1. Manisalidis I, et al. Environmental and Health Impacts of Air Pollution: A Review. Front Public Health. 2020; 8:14.
  2. Kampa M, and Castanas E. Human health effects of air pollution. Environ Pollut. 2008; 151(2):362-7.
  3. Air Pollution. WHO. Available online (accessed on 25-02-24) https://www.who.int/news-room/fact-sheets/detail/ambient-(outdoor)-air-quality-and-health.
  4. https://www.iqair.com/in-en/world-most-polluted-cities
  5. De Matteis S, et al. Current and new challenges in occupational lung diseases. Eur Respir Rev. 2017; 26(146):170080.
  6. Garcia E, Rice MB, and Gold DR. Air pollution and lung function in children. J Allergy Clin Immunol. 2021; 148(1):1-14.
Understanding Education Loan Protection Insurance Coverage

Understanding Education Loan Protection Insurance Coverage

Understanding Education Loan Protection Insurance Coverage

Education is a powerful tool for personal and societal advancement, and in India, many students pursue higher education with the help of education loans. To safeguard against unforeseen circumstances that may impact the repayment ability of these loans, many financial institutions and insurance providers offer Education Loan Protection Insurance Coverage. In this article, we will delve into the details of this insurance cover in the Indian context.

 Subas Tiwari

Purpose of Education Loan Protection Insurance

Education Loan Protection Insurance serves as a safety net for borrowers and their families in the face of unfortunate events. Primarily, it provides financial protection in the event of the borrower’s demise or disability during the loan repayment period.

Coverage Offered:

    • Death Coverage: In the event of the borrower’s death, the insurance coverage ensures that the outstanding loan amount is paid off. This prevents the burden of repayment from being passed on to the borrower’s family.
    • Disability Coverage: Some policies extend coverage in case the borrower becomes permanently disabled and is unable to continue repaying the loan.

Premium Structure:

    • Borrowers are required to pay premiums for the education loan protection insurance coverage. The premium amount is influenced by factors such as the loan amount, repayment tenure, and the age of the borrower.

Loan Amount Coverage:

    • The insurance coverage is directly tied to the outstanding loan amount. Should an unfortunate event occur, the insurance will cover the remaining balance of the education loan.

Eligibility Criteria:

    • Typically, individuals who have availed education loans from banks or financial institutions are eligible for education loan protection insurance. The specific eligibility criteria may vary among insurance providers.

Providers of Education Loan Protection Insurance:

    • Many banks and financial institutions that offer education loans also provide or recommend education loan protection insurance. Additionally, third-party insurance providers may offer specialized coverage for education loans.

Claim Process:

    • In the event of a claim, the beneficiary, often the family of the borrower, needs to initiate the claim process by contacting the insurance provider. Required documents, such as the death certificate or proof of disability, must be submitted for the claim to be processed.

Exclusions and Conditions:

    • Insurance policies often have specific exclusions. Pre-existing health conditions, suicides within a certain time frame, or other circumstances may be excluded. It is crucial for borrowers to thoroughly understand these exclusions.

Education Loan Protection Insurance Coverage in India plays a crucial role in mitigating financial risks associated with education loans. It provides peace of mind to borrowers and their families, ensuring that the pursuit of education remains a positive force even in challenging times. As the landscape of insurance policies is dynamic, it is advisable for individuals to consult with their respective lenders or insurance providers to stay informed about the latest updates and offerings in education loan protection insurance. Making an informed decision about this insurance coverage is a key step in securing a smooth educational journey and financial well-being.

 

Understanding education loan protection insurance coverage is essential for borrowers seeking financial security during their academic pursuits. Here are 30 tips to help you comprehend the nuances of education loan protection insurance coverage in India:

 

  1. Early Awareness:
    • Be aware of the existence of education loan protection insurance from the initial stages of your loan application process.
  2. Purpose Clarity:
    • Understand that the primary purpose of this insurance is to provide financial protection to your family in case of your demise or disability during the loan repayment period.
  3. Coverage Types:
    • Different policies may offer coverage for death and disability. Familiarize yourself with the specific types of coverage provided.
  4. Premium Structure:
    • Know the premium structure, including how the premium amount is calculated based on factors like loan amount, tenure, and your age.
  5. Loan Amount Coverage:
    • Understand that the insurance coverage amount is typically linked to the outstanding loan balance.
  6. Policy Duration:
    • Check the policy duration to ensure that it aligns with the repayment tenure of your education loan.
  7. Eligibility Criteria:
    • Confirm the eligibility criteria for availing education loan protection insurance. Criteria may vary among insurance providers.
  8. Providers:
    • Be aware that education loan protection insurance can be offered by banks, financial institutions, or third-party insurance providers.
  9. Claim Process:
    • Familiarize yourself with the claim process, including the documentation required and the steps to be taken by beneficiaries in the event of a claim.
  10. Exclusions:
    • Thoroughly review policy exclusions, which may include pre-existing conditions and specific circumstances that may invalidate a claim.
  11. Disability Definitions:
    • Understand the definitions of disability within the policy to know what conditions qualify for disability coverage.
  12. Suicide Clauses:
    • Be aware of suicide clauses, if any, which may impact the eligibility for a claim within a specific time frame after policy initiation.
  13. Policy Renewal:
    • Check if the policy offers renewal options, especially if you plan to extend your education or have a longer repayment period.
  14. Policy Cancellation:
    • Understand the terms and conditions related to policy cancellation and whether any refund is applicable.
  15. Premium Payment Periods:
    • Clarify the premium payment periods and frequencies to ensure timely payments for continuous coverage.
  16. Loan Repayment Impact:
    • Realize that the insurance coverage is designed to alleviate the burden on your family and does not exempt you from loan repayment obligations.
  17. Communication Channels:
    • Know the communication channels with the insurance provider for updates, changes, or queries related to your policy.
  18. Policy Documentation:
    • Keep a copy of your education loan protection insurance policy document for reference and clarity on terms and conditions.
  19. Multiple Borrowers:
    • If there are multiple borrowers for the same loan, understand how the insurance coverage applies to each borrower individually.
  20. Third-Party Providers:
    • If opting for a third-party insurance provider, research their reputation, customer reviews, and claim settlement history.
  21. Policy Renewal Reminders:
    • Set up reminders for policy renewal dates to avoid any lapse in coverage.
  22. Policy Review Periods:
    • Periodically review your insurance policy to ensure it still aligns with your financial needs and circumstances.
  23. Policy Portability:
    • Check if the policy offers portability, allowing you to transfer the coverage if you switch lenders or educational institutions.
  24. Policy Flexibility:
    • Understand the flexibility offered by the policy, such as the ability to increase coverage or make changes to the policy terms.
  25. Policy Waiting Periods:
    • Be aware of any waiting periods before certain benefits become applicable, especially if you have pre-existing health conditions.
  26. Documentation Security:
    • Safeguard all policy-related documents in a secure place and inform your family about the details and location.
  27. Financial Literacy Programs:
    • Some policies may include financial literacy programs. Take advantage of these resources to enhance your financial knowledge.
  28. Inflation Considerations:
    • Consider the impact of inflation on the coverage amount and assess whether the policy provides options for adjustments.
  29. Government Schemes:
    • Check for any government-backed schemes or subsidies related to education loan protection insurance.
  30. Consultation with Experts:
    • When in doubt, consult with financial advisors or insurance experts to ensure you fully understand the terms and implications of your education loan protection insurance coverage.

Remember, being well-informed about your education loan protection insurance is crucial for making sound financial decisions and securing your educational journey. Always refer to the specific terms and conditions of your policy and seek professional advice when needed.

 

 

 

Filing a claim for education loan protection insurance is a crucial step, and the process may vary slightly based on the insurance provider. Here is a general guide to help you navigate the process of filing a claim:

  1. Review Policy Documents:
    • Before initiating the claim process, carefully review your education loan protection insurance policy documents. Understand the terms, conditions, and coverage details.
  2. Notify Insurance Provider:
    • In the event of the insured event (such as the borrower’s demise or disability), inform the insurance provider promptly. Timeframes for notification may be specified in the policy, so act swiftly.
  3. Contact Customer Service:
    • Reach out to the customer service or claims department of the insurance provider. Obtain the necessary contact details from your policy documents or the official website.
  4. Provide Essential Information:
    • Be prepared to provide essential information such as the policy number, details of the insured (borrower), and a brief description of the event leading to the claim.
  5. Claim Forms:
    • Request the necessary claim forms from the insurance provider. These forms will typically include details about the insured, the nature of the claim, and supporting documents required.
  6. Complete Claim Forms:
    • Fill out the claim forms accurately and completely. Ensure that all the information provided is true and supported by relevant documents.
  7. Supporting Documents:
    • Gather all supporting documents required for the claim. These may include:
  • Death certificate (in case of demise).
  • Medical records and disability certificate (in case of disability).
  • Policy documents.
  • Identity proof of the claimant/beneficiary.
  • Any other documents specified by the insurance provider.
  1. Witness Statements:
    • If required, provide witness statements or any additional documentation as requested by the insurance provider.
  2. Submit the Claim:
    • Submit the completed claim forms along with the supporting documents to the designated address or email provided by the insurance provider.
  3. Track Claim Status:
    • Check with the insurance provider regularly to track the status of your claim. They may provide updates on the processing and approval stages.
  4. Claim Decision:
    • Once the claim is processed, the insurance provider will make a decision on whether to approve or deny the claim. If approved, the next steps for settlement will be communicated.
  5. Settlement Process:
    • If the claim is approved, the settlement process will be initiated. The insurance provider will communicate the settlement amount and the method of disbursement.
  6. Review Settlement Amount:
    • Review the settlement amount and ensure it aligns with the terms and conditions of the policy. If you have any concerns or questions, seek clarification from the insurance provider.
  7. Closure:
    • Once the claim settlement is completed, the insurance provider will close the claim, and the process will be concluded.
  8. Seek Professional Assistance if Needed:
    • If you encounter challenges during the claim process or have concerns about the settlement, consider seeking advice from a financial or legal professional.

Remember that the specific steps and requirements may vary among insurance providers, so it’s crucial to follow the instructions provided by your specific education loan protection insurance policy. Always keep copies of all communication and documentation related to the claim for your records. If in doubt, don’t hesitate to reach out to the customer service team for guidance.

Securing a personal loan from Non-Banking Financial Companies (NBFCs) can be a significant financial decision. To ensure a smooth borrowing experience and make informed choices, consider the following 20 tips when applying for a personal loan with NBFCs:

  1. Understand Your Need: Before applying for a personal loan, clearly define the purpose for which you require the funds. This will help you determine the appropriate loan amount and choose the right NBFC.
  2. Research NBFCs: Conduct thorough research on various NBFCs offering personal loans. Compare interest rates, loan terms, and customer reviews to identify reputable and customer-friendly institutions.
  3. Check Interest Rates: Compare interest rates offered by different NBFCs. Keep in mind that interest rates can vary based on factors such as your credit score, loan amount, and tenure.
  4. Assess Your Eligibility: Understand the eligibility criteria set by the NBFC. Check whether you meet the requirements for income, credit score, and other parameters before applying.
  5. Review Fees and Charges: Examine the fees and charges associated with the personal loan, including processing fees, prepayment charges, and any other hidden costs. Choose an NBFC with transparent fee structures.
  6. Evaluate Repayment Options: Look for NBFCs that offer flexible repayment options. Some institutions may allow you to choose the loan tenure and repayment frequency based on your financial capabilities.
  7. Check for Prepayment Options: Understand the prepayment terms and conditions. Some NBFCs may charge a penalty for prepayment, while others may allow it without additional charges.
  8. Maintain a Good Credit Score: A higher credit score enhances your chances of securing a personal loan at favourable terms. Regularly check and maintain a good credit score by paying bills on time and managing your credit responsibly.
  9. Review the Loan Agreement: Carefully read the terms and conditions of the loan agreement. Ensure that you understand all clauses, including interest rates, repayment schedule, and any penalties for default.
  10. Avoid Multiple Applications: Submitting multiple loan applications simultaneously can negatively impact your credit score. Apply to one or two NBFCs that align with your requirements.
  11. Consider Collateral: If you have valuable assets, consider opting for a secured personal loan. This can lead to lower interest rates compared to unsecured loans.

Check for Online Application: Many NBFCs offer online application processes, making it convenient and efficient. Explore institutions with user-friendly digital platforms for a seamless application experience.

  1. Read Customer Reviews: Look for reviews and testimonials from existing customers to gauge the satisfaction levels and service quality of the NBFC. Online reviews can provide valuable insights.
  2. Negotiate Interest Rates: Don’t hesitate to negotiate interest rates with the NBFC. If you have a good credit history, you may be able to secure a lower interest rate.
  3. Plan for EMI Payments: Before applying, calculate your Equated Monthly Instalments (EMIs) based on the loan amount, interest rate, and tenure. Ensure that the EMI fits comfortably within your monthly budget.
  4. Keep Documentation Ready: Have all the necessary documents, such as income proof, identity proof, and address proof, ready before applying. These speeds up the application process.
  5. Beware of Scams: Be cautious of fraudulent practices. Ensure that the NBFC is legitimate by verifying its credentials and checking for regulatory approvals.
  6. Utilize Customer Support: If you have any queries or concerns, reach out to the NBFC’s customer support. Assess the responsiveness and helpfulness of their support team.
  7. Maintain Financial Discipline: While the NBFC assesses your financial stability, ensure you maintain discipline in managing your finances. This includes timely bill payments and responsible credit usage.
  8. Review Your Financial Situation: Regularly assess your financial situation and whether a personal loan aligns with your long-term financial goals. Avoid borrowing more than necessary and prioritize financial health. By following these tips, you can navigate the process of obtaining a personal loan from NBFCs in India more effectively. Make informed decisions that align with your financial goals and ensure a positive borrowing experience.
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