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Narendra Modi government to provide interest free loans to IIT students

India TV News Desk New Delhi 04 Aug 2016, 21:04:32 PM IST
India TV News Desk

The government has decided to provide interest subvention on the education loans, for all students admitted for undergraduate and the 5-year integrated degree programmes in IITs, covering the period of the study plus one year of moratorium under the Vidyalaxmi Scheme, subject to the following guidelines:

The facility shall be made available to all the students whose household income does not exceed Rs. 9 lakh per annum.

The education loan, for this purpose, shall cover only the tuition fee payable by the student as per his eligibility. The portion of the tuition fee paid by the student from his own sources at the time of securing admission could be reimbursed from the overall loan.

This facility is applicable only to the loans taken by the students who secured admission into the undergraduate courses of IITs (including the integrated courses) starting from the academic year 2016-17.

The interest subvention, however, is subject to the satisfactory performance of the student in the institution.

However a Central Sector Scheme to provide interest subsidy on educational loan (CSSIS) is presently operational which provides full interest subsidy during the period of moratorium (course period + one year) on loans taken by students belonging to EWS from Scheduled banks under the Model Educational loan Scheme of the IBA for pursuing any of the approved courses of studies in technical and  professional streams, from recognized institutes in India.

This information was given by the Minister of State (HRD), Dr. Mahendra Nath Pandey today in a written reply to a Rajya Sabha question.