Education loan subsidy scheme finalised
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Avnish Jolly
Jun 26, 2010, 12:15:14 AM6/26/10
to SAFE - Social Action Foundation for Equity
Education loan subsidy scheme finalised
http://igovernment.in/site/education-loan-subsidy-scheme-finalised-37855
The scheme provides full interest subsidy on the loans taken to pursue
technical and professional courses
Published on 06/24/2010
New Delhi: To make education loans cheaper, a scheme was finalised on
Thursday to provide full interest subsidy on the loans taken by
students with annual family income below Rs4.5 lakh to pursue
technical and professional courses.
The format for the scheme was finalised after a meeting between the
Human Resource Development (HRD) Ministry and the Indian Banks'
Association (IBA), reports IANS.
"The scheme provides interest subvention to students for the period of
their course. The interest for this period will be paid to the banks
by the government," a Ministry official said.
The Canara Bank was finalised as the nodal bank for IBA member banks
to claim the subsidy amount reimbursement.
The scheme, which was approved by the cabinet last year provides
interest subvention to students with annual family income below Rs 4.5
lakh for the period till there course finishes.
It will provide interest subvention from the academic year 2009-10.
"The moratorium period also covers the time taken by the student to
get a job, or one year, whichever comes first," the official said.
The scheme will be valid for all loans from scheduled banks for
pursuing courses in professional and technical streams from recognised
institutes in India.
"All eligible students who wish to avail the benefits should approach
the respective bank branch from where they availed of the education
loan and complete the necessary formalities, including obtaining the
certification in respect of annual family income from the competent
authority at the local level," the official said.
The individual student accounts will then be credited with the
interest due on the loan for the academic year 2009-10 onwards, the
official added.
The scheme is effective for all IBA-approved educational loans.
http://igovernment.in/site/education-loan-subsidy-scheme-finalised-37855
The scheme provides full interest subsidy on the loans taken to pursue
technical and professional courses
Published on 06/24/2010
New Delhi: To make education loans cheaper, a scheme was finalised on
Thursday to provide full interest subsidy on the loans taken by
students with annual family income below Rs4.5 lakh to pursue
technical and professional courses.
The format for the scheme was finalised after a meeting between the
Human Resource Development (HRD) Ministry and the Indian Banks'
Association (IBA), reports IANS.
"The scheme provides interest subvention to students for the period of
their course. The interest for this period will be paid to the banks
by the government," a Ministry official said.
The Canara Bank was finalised as the nodal bank for IBA member banks
to claim the subsidy amount reimbursement.
The scheme, which was approved by the cabinet last year provides
interest subvention to students with annual family income below Rs 4.5
lakh for the period till there course finishes.
It will provide interest subvention from the academic year 2009-10.
"The moratorium period also covers the time taken by the student to
get a job, or one year, whichever comes first," the official said.
The scheme will be valid for all loans from scheduled banks for
pursuing courses in professional and technical streams from recognised
institutes in India.
"All eligible students who wish to avail the benefits should approach
the respective bank branch from where they availed of the education
loan and complete the necessary formalities, including obtaining the
certification in respect of annual family income from the competent
authority at the local level," the official said.
The individual student accounts will then be credited with the
interest due on the loan for the academic year 2009-10 onwards, the
official added.
The scheme is effective for all IBA-approved educational loans.
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