The Karnataka government has formulated the guidelines for the nodal agency of education, director of technical education, on the 6% loan subsidy for students of professional colleges.
After this guideline banks will be able to sanction the loan to any student who get admitted to professional courses through the state CET conducted by Karnataka Examination Authority (KEA); each bank (SBM, SBI, Canara etc) will have to classify one particular branch for further repayments. Moreover, banks who will receive the applications will have to send applications with proper recommendations; students will be able to avail the loan from any of the nationalized banks; the sanctioned loan amount will depend on certificate given by respective college principals regarding the fees for the entire course. This amount has been fixed to Rs 5 lakh including tuition fee. Student will have to pay upper limit of 6% interest. Nowadays it's a clever decision to take education loan for giving heights to your career.
About the proposals of repayment of subsidy, the banks are required to confirm that student has passed the earlier semester and are eligible to continue the course. The banks must send only such proposals. The proposal has to be collected from every bank and send it to the nodal agency through representative branch. Banks will be get the subsidy through a single cheque and in case a student fail in any subject and if they are not eligible to appear for the next semester, then they will not receive subsidy for the entire course. Subsidy limit has been set up till the course period only.
