Major Relief for Education Loan Borrowers, 9 Lakh Student
Borrowers to Benefit
The Union Finance Minister Shri P. Chidambaram has announced
a Moratorium period for all education loans taken-up to 31.3.2009
and outstanding on 31.12.2013. Government will take over the liability for
outstanding interest as on 31.12.2013, but the borrower would have to pay
interest for the period after 1.1.2014. Nearly 9 lakh students borrowers will
benefit to the tune of approximately Rs2,600 crore.
Presenting the Interim Budget in the LokSabha today, the
Union Finance Minister Shri Chidambaram said that a sum of Rs 2,600 crore will
be provided in the current financial year itself and this amount will be
transferred to the Canara Bank. Mr. P. Chidambaram said that the Central scheme
for interest subsidy was introduced in 2009-10 in respect of education loans
disbursed after 1.4.2009. However, students who had borrowed before 31.3.2009
struggled to pay interest during the period of study and they deserved some
relief.
Shri P. Chidambaram informed that ten years ago, only a few
thousand students- mostly the well-connected- got education loans. At the end
of December 2013, Public Sector Banks had 25,70,254 student loan accounts and
the amount outstanding was Rs. 57,700 crore.
No comments:
Post a Comment