Interest-free education loans for students soonMay 11th, 2008 - 3:10 pm ICT by admin
New Delhi, May 11 (IANS) Students would soon be able to take interest-free loans till they complete higher studies with the government planning to allocate Rs.40 billion for the purpose, a government official said. The human resource development (HRD) ministry has proposed the amount, which would be used for the 11th five-year plan ending 2012, the official, who did not want to be identified, said.
A senior HRD ministry official confirmed that the proposal has been approved by the finance ministry.
“The matter will come before the Cabinet Committee on Economic Affairs (CCEA) for approval sometime this month,” said an official.
“We will ensure that the scheme is implemented from the new academic session starting in July this year,” said an HRD official.
Under the scheme, the government would pay the interest for the loan amount sanctioned to any student, till six months after they complete their course.
“After students complete their course, they would get a grace period of six months after which they will have to pay interest on the amount sanctioned to them as education loan,” said a senior finance officer of the HRD ministry.
Banks currently charge between 15 and 18 percent interest on the amount sanctioned to students as education loan.
Government agencies have already begun talks for tie-up with leading banks and financial institutions that are offering education loans for higher education, especially professional courses.
The government will not act as guarantor for the loans, the official clarified.
“The banks will decide if they wish to provide education loan to a student or not. The banks need to be sure about the recovery of the loan sanctioned to students. Our role will be limited only to helping eligible students whose loans are cleared by banks through the new scheme,” added the official.
- Kerala to be tough on banks not providing 'edu loans' - Mar 28, 2012
- Education loan subsidy scheme finalised - Jun 24, 2010
- Government to shoulder interest on study loans for poor - Aug 27, 2009
- Madhya Pradesh youth to get Youth Commission - Jan 13, 2012
- Poor students to have interest subsidy on educational loans - Aug 27, 2009
- SBI reduces educational loan rates by up to 1 percent - Feb 27, 2012
- Education loan is a right of every student: Chidambaram - Aug 18, 2012
- Small home loan borrowers to get 1 percent interest subsidy - Oct 25, 2011
- Chandy seeks PM's help for educational loans - Jul 20, 2012
- Tripura demands central financial aid - Aug 17, 2011
- Maharashtra proposes interest-free crop loans - Mar 23, 2011
- World Bank offers $500 million loan for education in India - Mar 23, 2012
- Cabinet approves National Electricity Fund (Lead) - Dec 13, 2011
- Amid monsoon worry, interest-free loan for Rajasthan farmers - Jul 29, 2012
- Rajasthan launches interest-free loan for farmers - Jul 22, 2012