Government is formulating policies to help students from middle class by providing education loan so that they can take up professional studies which they cannot afford due to higher fees. Following this India is to set up a Higher Education Loan Guarantee Authority (HELGA) which will make it easier for needy students to secure bank loans for education and also pay the interest till they complete their course.
At present the interest of the loan is added to the principal amount and thus the compound interest puts a lot of burden on students.
The mega plan, worked out by the Planning Commission and the human resource development ministry, will be helpful for the students with annual family income of Rs.250,000 or less to avail of the loan.
"Every year, banks are providing study loans worth Rs.150 billion. We are setting up a Higher Education Loan Guarantee Authority to help needy students cross the hurdle," said a Planning Commission member who is closely associated with the project.
The authority will have a permission to pay the interest incurred due to the study loan till the candidate completes the course. The member said the government will bear the burden of Rs.6.5 billion annually.
The scheme is for both postgraduate and undergraduate students studying in institutes which have been recognized by the University Grant Commission (UGC), the All India Council for Technical Education (AICTE) and the Medical Council of India.
"Depending on their requirement, they will get loans up to Rs 1.5 million from banks. We are also planning that students should not pay huge collaterals, as is the norm now, to avail loan from banks," he said.
The official said discussion is going on between the ministry officials and our members to implement the scheme from the coming academic year.
1 comment:
Some people saying Education Loan Guarantee is not required is this true or not pls give detail and mail me.....
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