Backspace in select loop

When i use select loop to create a list of options, if i make a mistake during the prompt and want to hit backspace, it doesnt erase the character but displays ^H instead of it.

I know in "read" i can use -e to resolve this, but what do i do in select loop? Also, CTRL+C to break out of loop doesn't work. I've created select loop to loop through directories on remote side in menu-like style. It will change directory if directory is selected, but if it's not directory, it will select it as a file to edit.

until [[ $DONE == Yes ]]; do
select dir in $(ssh auth1 ls $PUTANJA $ONLYARPA) Nazad; do
        case $dir in
                "Nazad")
                        if [ "$PUTANJA" == "/var/named/chroot/var/named/master" ]; then
                                return
                        else
                                PUTANJA=$(ssh auth1 "cd $PUTANJA; cd ..; pwd")
                        fi
                        ;;
                *)
                        if ssh auth1 "[ -d $PUTANJA/$dir ]"; then
                                PUTANJA=$PUTANJA/$dir
                        else
                                ZONA=$dir
                                DONE=Yes
                        fi
                        ;;
        esac
        break
done
done