RPCD.PLNFS.No.BC.44 /06.12.05/2003-04

November 04, 2003

The Chairman/Managing Director
All Scheduled Commercial Banks

Dear Sir,

New Education Loan Scheme-Ceiling for Priority Sector Lending

Please refer to our circular RPCD.PLNFS.No.BC. 83/06.12.05/2000-01 dated April 28, 2001 on the captioned subject wherein banks have been advised to formulate their own Education Loan Schemes based on the Model Scheme.

2. In order to encourage banks to lend more to the poor and needy students, it has been decided that education loans up to the ceilings of Rs.7.50 lakh for studies in India and Rs.15 lakh for studies abroad respectively as indicated in the Model Scheme will be reckoned under priority sector advances.

3. We shall be glad if you will please implement the above decision and issue necessary instructions to your controlling offices/branches in the matter for appropriate action.

4.Please acknowledge receipt.

Yours faithfully,

Sd/

(Varughese John)
Chief General Manager