Friday, June 25, 2010

Milestone in Central Education Loan Scheme. for Students.

New Delhi: The Union Human Resource Development (HRD) Ministry has finalised the modalities for implementation of a new subsidised Central education loan scheme for students of economically weaker sections.
The scheme is effective from the academic year 2009-10.

Full interest subsidy will be provided during the period of moratorium on loans for students whose parental income from all sources is less than Rs.4.5 lakh a year.

The loans will be disbursed by scheduled banks under the Educational Loan Scheme of the Indian Banks' Association (IBA) for those pursuing courses in professional/technical streams from recognised institutions in the country.

The modalities have been finalised in consultation with the IBA.

The proof of income is to be certified by authorities to be designated by the State governments. The Ministry has written to Chief Secretaries of States/Union Territories to intimate the designated authority/authorities (at the district/sub-district/block levels).

All scheduled member-banks of the IBA have been advised to implement the scheme. Canara Bank is the nodal bank for the IBA member-banks for claiming reimbursement of interests credited to student accounts.

Eligible students can approach the respective bank branch from where they are availing the loan and complete the formalities so that the individual accounts could be credited with the interest due on the loan from the academic year 2009-10 onwards.

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