Chief Minister Arvind Kejriwal-led Aam Aadmi Party (AAP) government today said that it would soon launch an education scheme under which loans of up to Rs 10 lakh will be provided to students pursing higher education in the national capital.
Government has prepared a draft of the ‘Higher Education Credit Guarantee Scheme’ and it is expected to be tabled in the upcoming Budget Session later this month. Students who are residents of Delhi can only benefit from it.
According to the scheme, students will be provided with loans up to Rs 10 lakh and repayment of loan will be in Equated Monthly Installements (EMIs) of 15 years.
Interacting with a group of students from different colleges at the Delhi Secretariat here, Deputy Chief Minister Manish Sisodia said the government will play its role as the guaranteer of students who will not have to face any problems in pursuing higher education.
At the programme, Sisodia, also the Education Minister, sought views from students about the scheme and suggestions to make it more better for them.
“Parents or guardians will be joint borrowers and moratorium period will be up to 12 months from completion of the course. Interest rate by banks will be base rate + 2 per cent. Expenses on tuition and other fee, books, equipments, boarding or hostels and lodging etc,” Education Secretary Punya Salila Srivastava told students here.
She also said that all education institutions – government, private with with NAAC/NBA rating of A/B and/or self-financing institutions affiliated with Guru Gobind Singh Indraprastha University (GGSIPU) with State Fee Regulatory Committee (SFRC) rating of A+, A or B will be covered in the scheme, adding that insurance will also be mandatory.
“Progress report of students from institutions will be sent to the banks. Besides, UIDIA or PAN number will also be captured in the bank’s system. CIBIL score will be maintained. Endorsement of Loan will be on certificate of degree/diploma,” she added.
In the run up to last Assembly elections, the Aam Aadmi Party had promised that students, who wish to pursue any diploma or degree course after finishing class 12 from any school in Delhi will be given bank loans with the government standing as a guarantor.
“Students will not be required to furnish any collateral and the scheme will be universal in nature regardless of a student’s financial background. The loan will cover both tuition fees and living expenses.
“The loan repayment schedule will carry a moratorium period covering the years required to finish the course and one year thereafter to find a job. Under this scheme no loan request will be rejected,” the party had promised.