In a conference of state ministers of higher education Human Resources Development Minister Arjun Singh said the government will be launching a scheme under which it will be providing subsidy on educational loans taken by economically weaker sections and also start a scholarship scheme to help poor and meritorious students so that they can take admission in professional courses.
The government will also start a national merit scholarship scheme under which about 41,000 boys and the same number of girls will be given scholarship based on their performance at the intermediate examination.
He said under the scheme each student will get Rs 1,000 per month for ten months for the first two years and Rs 2,000 monthly for the subsequent period. Under the scheme the top two per cent of the students of class XII will be covered.
The government has already another scholarship program running since 2006 for single girl children securing more than 60 per cent marks in class X and XII. Besides, the government has increased the M. Tech assistance from Rs 5,000 to Rs 8,000.
Thursday, July 24, 2008
Wednesday, July 23, 2008
AB launched awareness program on educational loans
With the starting up of new session of the colleges Andhra Bank has launched its awareness program on educational loans. Bank on Wednesday started its program at Sri Venkateswara Government Polytechnic, the venue of Eamcet counseling.
At the launch of the program Andhra Bank Chief Manager YH Ramakrishna said the bank has introduced Pattabhi Vidya Jyothi Scheme with an aim to provide loans to students for pursuing higher education. A sum of Rs 1,000 crore was lent last year under the scheme.
Last year in Tirupati Zone comprising Chittoor, Nellore and Kadapa districts, the bank has issued loans to the tune of Rs 25 crore last year. For women students, the bank is charging 0.05 per cent interest rebate.
The students have to repay the loan amount one year after the completion of the course or six months after employment whichever is earlier. The awareness camp will be working till August 7. During the launch of the program senior manager Suresh and bank officer Ravikumar were also present.
At the launch of the program Andhra Bank Chief Manager YH Ramakrishna said the bank has introduced Pattabhi Vidya Jyothi Scheme with an aim to provide loans to students for pursuing higher education. A sum of Rs 1,000 crore was lent last year under the scheme.
Last year in Tirupati Zone comprising Chittoor, Nellore and Kadapa districts, the bank has issued loans to the tune of Rs 25 crore last year. For women students, the bank is charging 0.05 per cent interest rebate.
The students have to repay the loan amount one year after the completion of the course or six months after employment whichever is earlier. The awareness camp will be working till August 7. During the launch of the program senior manager Suresh and bank officer Ravikumar were also present.
Monday, July 14, 2008
Banks reluctant regarding disbursement of loans for aviation studies
In the recent times there has been a boom in the aviation industry because of which more and more students are taking up aviation courses. But banks classify aviation as career training and not professional education for the purpose of loan disbursement, so they have categorized these loans as personal loans and seek collateral accordingly.
Banks have been reluctant regarding disbursement of loans for aviation studies which in due course will be hampering the job prospects in the aviation sector. According to analysts this type of attitude of banks might affect the fortunes of aviation training institutes.
In India there are more than six branded aviation training institutes. As per industry experts, in the last six months 12 new institutes have started. Most of these institutes are offering one-year diplomas after higher secondary (+2), to train the candidates aged 17 to 24 years as cabin crew. The institutes charge fees anywhere, between Rs 1 lakh and 1.25 lakh per student.
There are some institutes who offer part-time courses. These jobs pay around Rs 16,000 a month. Approximately, over 70,000 students have been trained in the last two years alone.
Bank of Baroda executive said, "With a drastic change in the business environment, students who took loans for cabin crew (purser/air hostess) courses may not get jobs in the aviation sector. Instead, they may end up in the hospitality sector, which offers lower salaries compared to airline jobs. This has adverse implications on the repayment schedule. So we are going slowly on loans in this space."
Ananthakrishna, chief executive, Karnataka Bank stated, "There have been reports that a US-based airline training institute, which had many Indian students, had shut operations. The economic conditions (for aviation sector) have become uncertain and in such circumstances, banks have to be cautious in granting financial assistance for such courses."
The Reserve Bank of India has formulated prudential norms which makes it compulsory for banks to set aside a high risk weight age amount (125 points) for personal loans. Banks charge higher rates to cover the costs and risks.
Therefore the interest rates will be higher than prime lending rates (PLRs) currently which are ranging between 12-50 and 16.50 per cent. Hence the amount of loans for airline courses, especially pilot and other technical courses, is on the higher side.
According to the credit head of a private bank most of the students who take such loans come from financially well off families therefore they are capable to pay back the dues.
Banks have been reluctant regarding disbursement of loans for aviation studies which in due course will be hampering the job prospects in the aviation sector. According to analysts this type of attitude of banks might affect the fortunes of aviation training institutes.
In India there are more than six branded aviation training institutes. As per industry experts, in the last six months 12 new institutes have started. Most of these institutes are offering one-year diplomas after higher secondary (+2), to train the candidates aged 17 to 24 years as cabin crew. The institutes charge fees anywhere, between Rs 1 lakh and 1.25 lakh per student.
There are some institutes who offer part-time courses. These jobs pay around Rs 16,000 a month. Approximately, over 70,000 students have been trained in the last two years alone.
Bank of Baroda executive said, "With a drastic change in the business environment, students who took loans for cabin crew (purser/air hostess) courses may not get jobs in the aviation sector. Instead, they may end up in the hospitality sector, which offers lower salaries compared to airline jobs. This has adverse implications on the repayment schedule. So we are going slowly on loans in this space."
Ananthakrishna, chief executive, Karnataka Bank stated, "There have been reports that a US-based airline training institute, which had many Indian students, had shut operations. The economic conditions (for aviation sector) have become uncertain and in such circumstances, banks have to be cautious in granting financial assistance for such courses."
The Reserve Bank of India has formulated prudential norms which makes it compulsory for banks to set aside a high risk weight age amount (125 points) for personal loans. Banks charge higher rates to cover the costs and risks.
Therefore the interest rates will be higher than prime lending rates (PLRs) currently which are ranging between 12-50 and 16.50 per cent. Hence the amount of loans for airline courses, especially pilot and other technical courses, is on the higher side.
According to the credit head of a private bank most of the students who take such loans come from financially well off families therefore they are capable to pay back the dues.
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