Government To Pay Interest For Study Loans

New Delhi, Jun 22 : Students pursuing professional or technical studies with loans from banks were advised today about a year old government scheme to provide full interest subsidy on educational loans during moratorium period.

The facility introduced during 2009-10 is intended for students belonging to economically weaker sections-- with less than Rs.4.5 lakh of annual parental family income from all sources.

The scheme launched by the Human Resource Development Ministry covers loans from scheduled banks under the Educational Loan Scheme of the Indian Banks' Association.

An HRD Ministry statement said the loans are for pursuing studies in professional or technical streams from recognised institutions in India-- subject to a Rs 10 lakh ceiling.

Applicants must produce proof of income to be ''certified by authorities to be designated by the State governments,'' the HRD Ministry said.

It said Chief Secretaries of States and Union Territories have been requested to intimate the designated authority or authorities-- at District, Sub-District, Block levels-- to District level Consultative Committee ''so that banking authorities at the branch level where students would be approaching for availing the scheme would be aware of the same.'' It advised ''eligible'' students to get the details of designated authorities from the concerned branch of the Bank where they have availed of loan.

It said Scheduled IBA Member Banks have been advised to take action to implement the Scheme and named Canara Bank as the Nodal Bank for claiming reimbursement of interests to student accounts.

The Scheme details and the above communication are on the HRD Ministry website www.education.nic.in, it said.

It said ''eligible students who wish to avail of the benefits of the Scheme, are advised to approach the respective bank branch from where they availed of the education loan and complete the necessary formalities.'' These include obtaining the certification in respect of annual family income from the competent authority, so that the students accounts are credited with the interest due on loans for 2009-10 onwards.

The last day for students to submit certificates to respective branches is 20.07.2011, it said. (UNI -Posted on / )

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