Education Loans up to 10 Lakhs given by Delhi Government

In order to make sure that the eligible and deserving students get their fare chance to undergo higher education, Delhi Government has announced to avail loans up to 10 lakhs to students. The programme got kick started with Deputy Chief Minister and Education Minister Manish Sisodia distributing cheques to the first 25 beneficiaries under the scheme. There were around 30 students whose loans have been sanctioned and their cheques would be issues gradually. Cheques worth Rs. 75 lakhs in total were given in the inaugural function and there are sanction letters that got distributed to the students in the ceremony.

Sisodia said, “The government is with the students whose parents don’t have property as a guarantee to avail for their education. We will take their guarantee and give them a chance to study and not let finance become a hurdle in their education.”

Sisodia further pointed out that many students due to their financial hardships couldn’t continue with their studies and lack of educational loans. The students could apply for the loans after passing class 12 examination and get it for higher studies around the country. Delhi government employee or government servant’s children would also be eligible to take advantage of the scheme. There is no restriction over the age of the students applying for the loan. The students would get one-year moratorium after they complete their courses to start paying back the loan in EMIs for over 15 years.

Sisodia further added, “We take the guarantee of those students who fail to get a job despite higher education. But this will break if students do not repay even after getting jobs.” Guarantee would be available for loans for the government as well as private self-financed institution located within Delhi. The scheme incorporates students of technical/skill development course like World Class Skill Centre etc. The institute for whose courses the students are taking the loan for should have NAAC/NBA/SFRC grading.

The education loan would cover expenses related to course fee, library fee, purchase of books, equipment, instruments, uniforms, computer, reasonable boarding and lodging. The interest rate for the loan would be the base rate plus 2 percent.

Aam Aadmi Party which has recently voted to power in Delhi has given most priority to education in their budget allocating Rs. 9836 crore of its total budget of Rs. 41129 crore in the state.