Modi govt to bring in interest subsidy scheme for students
14 Aug 2014 6:27 AM IST
The Modi government is all set to implement a central scheme, Central Sector Interest Subsidy Scheme (CSIS), for providing interest subsidy during the period of moratorium on educational loans. The period of moratorium is study period plus one year or up to six months after getting a job, whichever is earlier.
In a written reply to Lok Sabha, human resource development minister Smriti Irani, on Wednesday said, ‘The scheme will cover students belonging to economically weaker sections with an annual gross parental/family income upper limit of Rs 4.5 lakh per year (from all sources).’
‘The loan subsidy plan would be effective for students undergoing professional/technical courses in higher educational institutions within the country,’ the HRD minister added.
The scheme would cover educational loans disbursed under the Indian Banks Association (IBA) model educational loan scheme and those granted by the National Scheduled Castes Finance and Development Corporation (NSCFDC), National Scheduled Tribes Finance and Development Corporation (NSTFDC), National Backward Classes Finance and Development Corporation (NBCFDC), National Handicapped Finance and Development Corporation (NHFDC), National Minorities Development and Finance Corporation (NMDFC) and National Safai Karamcharis Finance and Development Corporation (NSKFDC).
Further, with a view to reduce the non-performing assets on educational loan, to allow more loans at reasonable rates and in special cases without any collateral security in the form of third party guarantee, the government has approved the Credit Guarantee Fund Scheme for Educational Loans (CGFSEL).
In a written reply to Lok Sabha, human resource development minister Smriti Irani, on Wednesday said, ‘The scheme will cover students belonging to economically weaker sections with an annual gross parental/family income upper limit of Rs 4.5 lakh per year (from all sources).’
‘The loan subsidy plan would be effective for students undergoing professional/technical courses in higher educational institutions within the country,’ the HRD minister added.
The scheme would cover educational loans disbursed under the Indian Banks Association (IBA) model educational loan scheme and those granted by the National Scheduled Castes Finance and Development Corporation (NSCFDC), National Scheduled Tribes Finance and Development Corporation (NSTFDC), National Backward Classes Finance and Development Corporation (NBCFDC), National Handicapped Finance and Development Corporation (NHFDC), National Minorities Development and Finance Corporation (NMDFC) and National Safai Karamcharis Finance and Development Corporation (NSKFDC).
Further, with a view to reduce the non-performing assets on educational loan, to allow more loans at reasonable rates and in special cases without any collateral security in the form of third party guarantee, the government has approved the Credit Guarantee Fund Scheme for Educational Loans (CGFSEL).
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