In order to provide higher education loans upto Rs. 10 lakh to the students, the newly formed Aam Aadmi Party (AAP) government in Delhi has launched a higher education and skill education guarantee scheme. This will provide necessary funds for the students in Delhi to pursue their higher studies.
According to a statement issued by state government, “Under the scheme, regardless of the student’s financial condition, they would be provided Rs. 10 lakh as loan without any collateral or third-party guarantee or margin money. There would be no processing charges for the loan. Students pursuing any skill development course or diploma or degree course after finishing qualifying examination from any school/educational institution in Delhi are eligible under this scheme. The scheme will also be applicable for it is and polytechnic colleges.”
In the statement there was a clear mention about the return of the loan policy as well. The repayment schedule would carry a moratorium period which would cover the years required to finish the course. Apart from this the students taking the loan would get one year after they finish the course to find a job and start repaying. The repayment would be in the form of Equated Monthly Installments (EMIs) for a maximum period of 15 years, taking the burden out from the student’s heads. The maximum interest rates in these loans would also be lower than the ones that are offered by most of the banks presently.
Through using the loan money the students can pay their tuition and other fees, buy books and equipment necessary along with laptops and other reading materials. In order to make the process smoother the government has also decided to form a grievance redressal committee that would look after the progress report of the students collected from the institutions and provide them to the banks. Students can directly apply to the banks for the loan or they can do the same online.