LG approves higher education loan scheme

NEW DELHI: Delhi Lieutenant Governor Anil Baijal on Wednesday approved the Delhi government's higher education and skill development loan guarantee scheme, under which students will be provided loans up to Rs 10 lakh by banks, with the government as a guarantor.

Earlier, Baijal had blocked the education loan scheme and asked the Delhi government to consult the Union Home Ministry.

However, the Delhi government protested, saying that waiting for approval from the Centre would mean that the scheme will be halted for years.

While approving the scheme, the LG has asked the Delhi government to incorporate all safeguards as mentioned by Deputy Chief Minister Manish Sisodia in a time-bound manner.

Last month, Sisodia, who also holds the education portfolio, had accused the LG of "blocking" the education loan scheme. In response to Sisodia's accusations, Baijal had written to the deputy chief minister, dubbing his statement as "unfortunate".

In a letter to Sisodia, the LG had suggested incorporation of some safeguards including ensuring of responsibilities of the lending institutions and linkage of loan with Aadhaar number in the scheme.