More funds for education loan repayment plan

Gayathri | Wednesday, May 31, 2017 12:14 PM IST

More funds  for education loan repayment plan

Education minister launched the state government's education loan repayment support scheme at the Town Hall. Speaking at the function he said, if needed the government will provide more fund and all eligible students will be brought under this scheme.

The 900-crore government scheme to aid education loan defaulters in the state was launched in Kottayam on Tuesday. Inaugurating the scheme, Education Minister C Raveendranath said the government will consider allocating more funds to help the families who defaulted on the loans and were facing confiscation proceedings.

“The changing economic system, owing to the increasing divide between the rich and the poor, has a major role in putting people in acute financial crisis. Most students fail to get jobs on time after completing their courses due to problems in the system,” he said.

The government has earmarked Rs 900 crore for the scheme aimed at helping financially backward students. The scheme envisages government support to those who availed education loan for a period of four years.
He said that the borrower alone cannot be blamed for failing to repay the loan.

Students from families with an annual income of less than Rs six lakh and have taken less than Rs nine lakhs as education loan will be benefited from the scheme.

In the case of loans up to Rs 4 lakhs which have been listed by banks under non-performing assets, the government will repay 60% while the borrower will have to repay only the remaining 40%. The government has directed the banks to exempt the interest on the loan.

In the case of loans exceeding Rs 4 lakhs, which are not included under the non-performing assets, the government has announced a special package for repayment.The scheme also envisages the full repayment of loans in cases where the student had died or is physically or mentally challenged.