Education loan scheme launched

Updated At : 06:11 AM Sep 10, 2015 IST

Deputy Chief Minister and Education Minister Manish Sisodia presenting education loan to a student Deepa Pandey at Delhi Secretariat in New Delhi on Wednesday. Tribune photo: Manas Ranjan Bhui

Tribune News Service

New Delhi, September 9

In a strategic move two days before the Delhi University Students elections, the Delhi Government today launched its Higher Education Loan Guarantee Scheme, fulfilling an election promise made to the students and parents residing in the national Capital.

An initial corpus of Rs 10 crore has been allocated for the scheme under the Higher Education and Skill Development Credit Guarantee Fund and Trust.

Deputy Chief Minister and Education Minister Manish Sisodia distributed cheques and sanction letters for loans to 13 students on this occasion, which have been issued by the Punjab National Bank. Later, 30 other students received sanction letters of their loan from the banks, the cheques for which will follow soon.

The scheme, Higher Education and Skill Development Guarantee Scheme, will be for bank loans up to Rs 10 lakh. No collateral or margin money is required for the loan.

"Students pursuing recognized diploma/degree/doctoral degree or specified skill development courses in Delhi and have done their Class X and XII from Delhi are eligible under the scheme.

The guarantee will be available for loans for courses of government as well as the private self-financed institutions located in Delhi. Institutions of technical/skill development courses like World Class Skill Centre will also be eligible.

The maximum interest rate to be charged is Base Rate plus 2 per cent and moratorium period will be course period plus one year with repayment period being 15 years.

Further, one per cent interest concession may be provided by the bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment. Parents will be joint borrowers, said officials while adding that there is no restriction regarding age of the student and in case of default, credit scores such as CIBIL of parents as well as students will be affected adversely.

Scheme is applicable to education loans sanctioned by member banks of Indian Bankers Association and apart from Punjab National Bank, the scheme has been approved by the Board of Governors of Union Bank and Oriental Bank of Commerce. All the other nationalised banks are also in the process of taking approvals from their Board of Governors which are expected shortly.

Education loan scheme launched

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