It was the Kerala Govt’s promise that an education loan subsidy scheme will launch in 2017. Dr. Tomas Issac announced it in the budget session that a category of students who failed to repay their education loans will get a repayment support from Government. Although the program has been in the news for a couple of months, only now it got a clarity with the launch of Elrs.kerala.gov.in, the official government website handling registration for the subsidy scheme.
How to avail Kerala Education loan subsidy and repayment support scheme [ELRS]
The scheme is outlined in such a way to provide the support for a period of four years. It is not a complete debt relief plan but a support from the government for the students or families ready to pay-back a reasonable amount to the banks. Please note that the subsidy is available up-to an upper limit of 9 Lakhs. Educational loan holders may choose from one of the following options as per the applicability.
- For standard accounts: This is for loan accounts which are in good standing with the banks. The proposal expects the repayment to such an account has already commenced in between 2012 April to 2016 March 31 and is continuing. The govt. will help the students to repay the amount for the upcoming years.
- For NPA Accounts: There are two options for loans classified as NPA or Non-Performing-Assets before 31-03-2016. They either have to agree with the bank for a one-time settlement by full payment or regularise/ reschedule the pending amount. The Kerala government will help the applicants to remit the dues in order regularize the account (up-to 4 Lakhs) or reschedule the EMIs (For loans from 4-9 Lakhs) to an acceptable sum. However, beneficiaries have to pay the defaulted amount decided by the banks up-front, upon successful approval of the claim and verification of the documents. This amount can be paid online through Elrs.kerala.gov.in.
Update: This scheme is no longer available for new applicants. Nearly 20000 students got relief through this initiative, and it cost 200 Cr to the exchequer. However, you may still opt for the Central Government subsidies, or RBI’s moratorium, offered by SBI, HDFC Bank, ICICI Bank, Axis Bank, Citi Bank, and many other financial firms. This scheme not only helps you with loan re-payment, but also credit card dues.
Details of the ELRS sharing scheme.
Our advice for the applicants opting for the support scheme is to apply for the rescheduling of the educational loan. If you choose to close the loan account under the OTS one-time settlement, it may further affect your CIBIL score. Please keep mind that a good CIBIL credit report, is must for getting applying bank exams (SBI), and getting credit cards, housing/car/personal loan in the future.
Kerala Government offers subsidy on principle and interest parts of the educational loan. The proposed sharing ratio/ contribution pattern is what you see below.
For further information about the above categorization, download the official notification on educational loan repayment scheme.
Eligibility for Education loan subsidy scheme in Kerala
Kerala government has a few eligibility requirements for the students applying for this scheme. Let’s check who all are eligible.
- Available only for educational loans taken from Banks in Kerala including Gramin and Co-Operative Banks.
- Students who take their admission under government/merit quota in a technical or professional course from a recognised institution are eligible. However, this clause is not applicable to Nursing Students.
- Nurses who have a defaulted their loan could apply online for the subsidy scheme even if they took admission under management quota
- Family income must be under the upper limit or 6 Lakh. Also, the current annual income of the applicant (if any) should be below four times the yearly amount repayable to the bank.
- Relaxation applies to disabled and parents of the deceased students. They may refer the government order for clarifications
Documents required for for filling application form at Elrs.kerala.gov.in
- PAN: PAN card is must for the application. In case you don’t have a PAN Card, you can take one in the fast-track mode at NSDL website.
- Aadhar Card: Govt. has made it clear earlier that you have to provide Aadhar for all govt subsidy schemes. Aadhar must be linked to PAN.
- Scan the PAN and Aadhar card to an uploadable format.
- Class 10 pass certificate is necessary for getting through the first page of the registration form on elrs.kerala.gov.in.
- Eligibility certificate from Village Officer Counter signed by Grade-I gazetted Officer. Download the format.
- Course completion certificate issued by the institution where the student studied. In a case of the discontinuation on medical grounds, a certificate from the head of the college is a must.
- If applicable, the student or parent may also submit disability/death/salary certificate through the online form.
- Educational certificates and Bank Statements ( for filling the form).
Elrs.kerala.gov.in: steps to apply for Kerala Educational loan subsidy online
The process of filling online application form for the Kerala education loan subsidy through elrs.kerala.gov.in is straightforward and easy. Just make sure that you arrange all the certificates mentioned above before opening the ELRS.
ELRS means Education Loan Repayment System, a web application designed for collecting the registration from students.
- Once you’re on the page as shown in the screenshot, click on “Student Registration” button.
- Now, enter your name, DOB, mobile number, email ID, PAN Card, Aadhar, and Class 10 certificate details in the boxes provided.
- Enter your mobile number and click on OTP button for SMS verification. Input the number in the SMS that you get from IM-KLMGV sender.
- As you complete this page, click the “Submit” button for the next page. Here will see the options to upload the documents that we have mentioned earlier.
- When you pass this stage of the registration form, a user ID and password for the portal Elrs.kerala.gov.in will be sent to your verified mobile number.
- Save this login ID password for all future communication, and for correcting the application form in case of rejection from the bank.
- Now, on the next page, you will find the claim form, which you’re going to submit online to the bank.
- The application form asks a few information; details of the educational loan taken, course studied, annual income, the category of the applicant (whether NPA/Standard), etc.
- They also require the details of the subsidy schemes already availed (if applicable).
Finally, you will see the option to submit the form online. A PDF copy of the registration form and uploaded documents will generate if everything goes as per the instructions. Download and print it.
What to expect post Elrs.kerala.gov.in registration
Students have to print of these documents, sign appropriately, and submit it to the bank from where they took the loan. They should also bring originals of the documents for verification purpose. Banks will check the information, and the claim will get a node if the applicant’s information satisfies their internal policies. The bank then decides on a claim amount to regularize the EMIs or settle the education loan. Students may login to Elrs.kerala.gov.in to see what they need to pay for activating the repayment support from Kerala Government. Just pay it within 90 days through the online portal, and that’s it. In the event of rejection, applicants may do the required changes in the official website itself and resubmit the application form.
How to recover ELRS.Kerala.GOV.IN user ID or Password? Reset option is now there.
Many people who have applied for the newly introduced education loan su scheme in Kerala are experiencing an issue with the OTP. Some were not getting a user ID and password after clicking the submit button as it was not working. Some others had a complaint that a reset password option is not there for ELRS Kerala website. Thanks to the CDIT team working on this web application, now we a button to retrieve user credentials on elrs.Kerala.gov.in website. Check it now. If your online application form for education subsidy got registered on the portal, you would be able to recover it through this option. Else, try to record again.