The government has now decided to offer its own education loans to students who cannot pursue professional courses due to paucity of funds.
Launching on Aug 15, the scheme will cover about 1 lakh students
NEW DELHI: Taking a cue from commercial banks, the government has now decided to offer its own education loans to students who cannot pursue professional courses due to paucity of funds.
The beneficiaries of the scheme, however, will only be those from a poor financial background and the loan will be offered only for professional and technical courses like engineering, medical, management, law etc.
“The loan will be given to students from the non-creamy layer section, especially those whose parents draw low incomes. Economic criteria will be the only parameter for giving education loans,” said an official from the Human Resource Development Ministry (MHRD).
The scheme, to be launched on August 15, is likely to cover about one lakh students in its first stage, and the interest rates will be kept very low to ensure easy repayment. The MHRD has kept aside Rs1 crore as a token amount in its budgetary allocation for the education loan scheme this year and sources indicated the amount will be hiked substantially in the coming years.
According to government calculations, Rs14, 214 crore is outstanding education loan on 9.37 lakh students. However, poor students get left out due to the lack of collateral guarantee.
“With banks offering education loans at nearly 12 per cent interest, only a few can afford professional degrees. The government feels nobody should be deprived of education just because they are poor. The loans would also help in boosting enrolment rates in technical and professional courses,” said the official.
The official explained that the banks and educational institutions will work together and students will not have to run around for sanction. “The student will only have to submit the loan application with the institute which will facilitate the loan,” said the official.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}