"Collateral-free education loans up to Rs 7.5 lakh extended to students": Tamil Nadu Minister K Viswanathan
Chennai, July 18
Tamil Nadu Higher Education Minister K Viswanathan on Saturday said the state government is committed to ensuring that no student is denied access to higher education due to financial constraints and is working to expand education loan facilities.
Speaking to reporters on the sidelines of the birth anniversary celebrations of Ethiraj College founder M Ethiraj, the Tamil Nadu Minister said that education loans were provided extensively to students during the UPA government led by former Prime Minister Manmohan Singh from 2004 to 2014.
He said the state government has set a target of facilitating education loans for 1,00,200 students during the 2026-27 academic year, with loans amounting to around Rs 3,000 crore expected to be disbursed.
Viswanathan added that Chief Minister Joseph Vijay has prepared a comprehensive framework under which collateral-free education loans of up to Rs 7.5 lakh are being extended to students.
"Chief Minister Joseph Vijay has prepared a comprehensive framework under which collateral-free education loans up to Rs 7.5 lakh have been extended to students. The CM has taken a firm decision that no student should be prevented from pursuing higher education due to a lack of financial resources," he said.
On appointments in universities, the Minister denied allegations of corruption in the appointment of deans and Syndicate members, stating that the Chief Minister was personally monitoring the process.
On the Naan Mudhalvan scheme, Viswanathan said it was launched by the previous DMK government and added that the present government had taken its own policy decisions after assuming office, which he described as a normal practice following a change in government.
The Naan Mudhalvan ("I am the First") scheme is a skill development initiative by the Tamil Nadu government. Launched in 2022, it equips students and youth with industry-relevant skills, coding, robotics, and spoken English. It also offers scholarships and coaching for Union government exams.
— ANI
Reader Comments
Good initiative but let's not forget that the UPA government under Dr. Manmohan Singh also did a lot for education loans. The minister acknowledging that is fair. However, we need to see if this loan target of 1,00,200 students is actually met - numbers sound ambitious but execution is key. Also, hope the Naan Mudhalvan scheme continues effectively under this government.
This is exactly the kind of policy we need in India. Education should never be a luxury only for the rich. Rs 7.5 lakh collateral-free loan can cover fees for many good courses. But I'm skeptical about the corruption allegations in university appointments - the minister denied it but these things need proper transparency. CM monitoring is good but independent oversight would be better.
Finally some progressive thinking! My cousin had to drop out of engineering because we couldn't provide collateral for a loan. If such a scheme existed then, his life would be different. Hope other states also adopt similar models. But please ensure banks don't create unnecessary hurdles in disbursing these loans - that's often the real problem. 🙏
Good scheme but I'm concerned about the financial burden on the state government. Rs 3,000 crore is a huge amount. Where is this money coming from? Are we increasing taxes or cutting other essential services? Also, will there be a mechanism to ensure students actually complete their education and repay these loans? Without proper tracking, this could become another loan waiver scheme.
As a first-generation learner from a village in TN, this news gives me hope! Education is the only way to break the cycle of poverty.
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