Prakash Javadekar, HRD minister announced that now the students at IIT can get the education loan interest-free. He believes that considering the hike in the fees of the students every year, they should get the loan without any interest on it. But there is one condition along with it. The condition is that this interest-free loan is available to only those whose household income does not exceed Rs.9 lakh per annum.
The duration of the same would be for five years. The new HRD minister has done this to reduce the pressure on the students as they enter a new academic session this year starting from April. This has been really a big relief to the students of IIT as they are under constant pressure because of the hike in fees. The proposal was approved by the Centre on Thursday. The government does not want the students and the parents to face any kind of difficulties while repaying the loan, so this step has been taken by the concerned authority.According to an official, “ The ministry has planned a subvention scheme which will ensure that the
According to an official, “ The ministry has planned a subvention scheme which will ensure that the loan’s interest part is taken care by it. The details of the scheme are being finalized by the ministry. “ This proposal is for both undergraduate and postgraduate students.With effect from this academic year, the fee has been increased by Rs. 90,000. The fee for the last academic year was Rs. 2,00,000. One of the
With effect from this academic year, the fee has been increased by Rs. 90,000. The fee for the last academic year was Rs. 2,00,000. One of the directives of HRD said, “It has been decided to offer interest subvention on the education loans of all students admitted to the undergraduate and 5-year integrated program covering the period of the study plus one year of the moratorium (not exceeding five years in total).” In the current proposal, the hostel and food will not be accommodated.
Earlier also, it was decided to offer the students interest fee loans under schemes such as Vidya Lakshmi. But somehow, complaints are still received from the students regarding the issue.
Students who are taking admission in the IITs will get reimbursement from the bank whereas the interest will be paid by the IITs. It also said that the loan will be given to the students for a period of ten years and no collateral will be accepted from them or their parents. For the same reason, the IITs will also have to sign an MOU with the respective banks.