Interest subsidy on educational loans

Last Updated: Friday, June 26, 2009 - 01:00

New Delhi, June 25: Students from disadvantaged
economic backgrounds will no longer face financial problems in
pursuit of higher education as the government is set to launch
an interest subsidy scheme on educational loans taken by them.

"The government is launching a new scheme on interest
subsidy on educational loans taken for professional courses by
economically weaker students," HRD Minister Kapil Sibal told
reporters here today.

The scheme, which is awaiting the approval of the
Cabinet, is intended to make funds available for higher
education to a large community of deserving students.

Under the new scheme, students can get loans from
government with subsidised interest.

"We will give interest subsidy on education loans
taken by students because we are interested in the education
of poor students," he said.

However, those students whose family income is less
than Rs 4.5 lakh per annum will be eligible under the scheme.

The students will avail the benefit for a moratorium period
which is one year from completion of the course or six months
from joining a job, whichever is earlier.

The scheme has already got the approval of Expenditure
Finance Committee. An estimated Rs 4,000 crore will be given
to needy students during the 11th Plan period under this
scheme.

Bureau Report



First Published: Friday, June 26, 2009 - 01:00
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