A Comprehensive Comparison of Education Loans from Banks

A Comprehensive Comparison of Education Loans from Banks

by | Mar 16, 2024 | loan

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

by | Mar 16, 2024 | Legal

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

by | Mar 16, 2024 | Guest Column

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

by | Mar 9, 2024 | loan

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.
Cracking Cheese Codes: Healthy Choices, Labels, and Storage Tips

Cracking Cheese Codes: Healthy Choices, Labels, and Storage Tips

by | Mar 9, 2024 | Guest Column

Cracking Cheese Codes: Healthy Choices, Labels, and Storage Tips

Cheese is a creamy, tangy, versatile delight that can elevate any dish and melt our hearts and taste buds in seconds. However, it is often thought to have negative effects on our health. With a little mindfulness, you can make healthier choices when it comes to this delicious treat. In this article, we discuss different types of cheeses, deciphering labels while making choices, and unlocking storage secrets related to cheese.                                                                                                                                                             

Richa Pande

Cheese is made with fresh milk from cows, goats, sheep, or buffaloes. The milk is pasteurized, and sometimes the fat content is standardized. Starter cultures are added to ferment the milk, which increases its acidity and develops its flavour. The next step is to add rennet, which is an enzyme that curdles the milk proteins into solid curds. The curds are then shaped, pressed, salted, and aged. Different cheese varieties have unique processing techniques and ageing durations, which result in various flavours and textures.

Cheese can be categorized based on its texture and flavour

  • Fresh cheeses are made through the process of acid or rennet coagulation, and they have a high moisture content and delicate flavours. Examples include-Ricotta, Feta, Mozzarella.
  • Soft-ripened cheeses are aged for a few weeks to months and develop a distinctive bloomy rind and rich texture. Example- Brie, Camembert.
  • Semi-firm cheeses start to develop a wider range of flavours, from floral to fruity and even sometimes buttery. These cheeses are firmer than soft cheeses but still not quite firm enough to be categorized as hard cheese. This makes them perfect for slicing and shredding rather than grating or spreading. Some of the most common semi-firm cheeses include Cheddar Cheese, Edam Cheese, and Gouda.
  • Hard cheeses are aged for a long time and have concentrated flavours and firm textures. Example- Parmesan.

Healthier Varieties of Cheese

Some varieties of cheese such as Mozzarella cheese contain bacteria that act as probiotics, including strains of Lactobacillus Casei and Lactobacillus Fermentum. Cottage cheese is much higher in protein than other cheeses and is easier to digest. Ricotta cheeses are low in both fat and sodium content which is good for health. Parmesan cheese is exceptionally high amounts of calcium. Cheddar cheese too is high in calcium, and a good source of Vitamin K2.

Cheese made from Cow Milk might not be good for you!

Cheeses made from cow milk might impact some individuals’ health as they can be made from A2 milk and could have a type of casein protein not good for the health of some individuals. They can pick cheeses made from goats, sheep, or buffaloes. Cheese made from goat milk has capric acid in them that has anti-inflammatory properties.

Slices vs Cubes vs Spreads: Which is healthier?

These selections are mostly made based on the applications. On comparing the nutritive values of these variants of cheese, I found that the cheese slices and cubes have almost similar nutritive values i.e. calories, protein, total fats, and saturated fats. The sodium content in the cubes is a bit on the higher side when compared to the slice. Plain cheese spread has lesser amounts of sodium, protein, fats, and saturated fats than the cubes and slices. 

Cheeses for lactose-intolerant individuals

Some varieties of cheese are low in lactose and may be well tolerated by people who have lactose intolerance. Example- cheddar and mozzarella. Note that creamy cheeses like cottage cheese, ricotta cheese, and cream cheese have higher lactose content.

Cheese & Our Environment

Cheese may be delicious, but its production isn’t climate friendly. One kilo release about 13.5 kilos of CO2 equivalent, comparable to driving about 50 km. Exploring alternatives or mindful consumption can contribute to a healthier planet. Some varieties such as the Feta Cheese and Mozzarella Cheeses are known to have smaller environmental footprints than other cheeses. It’s always recommended to pick locally manufactured cheese to cut carbon emissions.

Check Food Labels!

Always compare the nutritive values of cheese before picking one from the shelf. Pick one that has more amounts of calcium and protein and less amounts of saturated fats and sodium.

Handling Cheese Well for Food Safety!

Cheese may be a culinary treasure but mishandling it can turn it into a potential health hazard. Soft cheeses such as creamy spreads, cottage cheese, and goat cheeses have a high moisture content and should always be refrigerated to prevent microbial growth. In harder cheeses, microbial growth is prevented due to the lower moisture. Always check the label’s use-by date before using it. You will be amazed to know that some unopened refrigerated hard cheeses can last up to 2-4 months, and if opened, they can last about one month. If hard cheeses are stored in the freezer section in a tightly sealed container (cut off from oxygen), it can last up to 7 months. Do not store cheese in plastic wraps for long as it exposes cheese to the chemicals in the packaging, leading to the presence of microplastics in the cheese later. Also, storing cheese in tightly wrapped plastic can lead to moisture collecting on it, and this increases the risk of rotting.

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