Monday, May 5, 2008

HRD Is Likely To Unveil A Scheme To Interest On Bank Loans

The Ministry of Human Resource Development (HRD) is likely to unveil a scheme to subsidise interest on bank loans taken by students to pursue professional education. According to the sources, the Educational Loan Interest Subsidy Scheme will be rolled out from the 2008-09 academic year.

The officials who arrived at the scheme in the Expenditure Finance Committee (EFC) meeting a few days ago are now preparing a Cabinet note for the scheme.

The loan amount taken by the student should be commensurate with the course fee he/she is paying the institute, according to the contours of the scheme. Loans taken from any bank under the Indian Banks'' Association will be eligible. The scheme would cover students pursuing professional courses in all recognised private institutions. While the HRD ministry would be the nodal ministry, the Canara Bank would be the nodal bank for disbursal of the interest amount to banks. The scheme would require about Rs 4,000 crore in the entire Plan period.

1 comment:

Unknown said...

Hey,
If this scheme is implemented,I am sure the students will not be reluctant in applying for a loan.
Because "Education in every country is costly".