Sivaganga: Centre has sanctioned interest subsidy on education loans availed by economically backward students to pursue higher education in government recognised
colleges, according to MA Siddique, special Secretary to home Minister P Chidambaram.
In a release he said the Union Government had accepted the recommendation of the Indian Banks` Sammelan to provide this subsidy and that a letter in this regard has been received from Finance Minister Pranab Mukherjee.
The release said the Home minister had received complaints from educational loan beneficiaries that they were forced to pay interest and penal interest by banks from which they had taken the loans.
When Chidambaram contacted Mukherjee over this, he was told that the Centre had accepted the Sammelan`s recommendation to provide interest subsidy on education loans.
The finance ministry also informed that certain rules had been framed for interest subsidy on education loans. The subsidy would be given to eligible candidates from 2009-10, he