Industry & Economy
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Education
Education loans for needy students at cheaper rates
Our Bureau
New Delhi
,
Jan. 9
THE Finance Ministry has signalled happier times for students facing a fund crunch in attaining higher education.
The Ministry has asked banks to extend loans for "bright but needy" youngsters at 2 percentage points below their Prime Lending Rate (PLR).
At present, banks are charging 1 percentage point more than PLR for educational loans of over Rs 4 lakh, and for loans below Rs 4 lakh, they are charging at PLR.
"Creative genius of young Indian minds needs to be set free through quality education. Enabling bright but needy youngsters to avail of higher education, the existing education loan scheme of banks would be liberalised to allow access to higher loans at 2 percentage points below PLR," the Finance Minister said.
This would mean that the quantum of loan to each student would be higher than the existing ceiling of Rs 7.5 lakh for studies in India and Rs 15 lakh for studies in institutions and universities abroad.
The Minister said that Government would provide "necessary support to the banks for the purpose".
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