Education loans to be simplified: FM

In a move to simplify education loan formalities, six to seven banks in the country would provide "Online loan application" facility from this academic year, Finance Minister P Chidambaram said.


Inaugurating the 1327th branch of the Oriental Bank of Commerce today, he said the facility will be extended to all the banks in the course of this year itself.

The nationalised banks in India created a world record in the last financial year when they provided education loan to 12,51,692 students to the tune of Rs.19,771 crore, he said.


"It is world record that a country holds. In no other country, such large number of students have been given education loan. I am not including the education loan extended by the private banks when I mention it is a world record. It is also a historic achievement. The loans help the middle class and poor people," Chidambaram said.
 

The scholarship for pursuing school education after the eighth standard, which was planned for one lakh students for this year, would be extended to two lakh students next year, the Finance Minister said.


The scheme was being introduced for the best and meritorious students who could not pursue their education. The Rs 6000 per year scholarship scheme for poor meritorious students was decided during the cabinet meeting held on May 9.


Besides, he said, a separate pre-matric scholarship for the wards of those engaged in "menial jobs" to pursue higher education or ITI or diploma courses was also being implemented.


He said the 'Scheduled Caste meritorious students' scholarship scheme has been extended to 15,370 students,while the financial assistance for the minorities to pursue their education would benefit 20,000 students.The government also planned to encourage students to pursue pure science and research activities and give special incentives for them.


"More schemes to promote higher education are on the anvil," he said without elaborating. Responding to the Opposition's challenge as to how the government would implement the farm loan waiver scheme, Chidambaram said, "we know how to provide for Rs 60,000 crore farm loan waiver that would benefit four crore farmers and it would be done before June 30. The Government targeted to provide farm loan to the tune of Rs.2,80,000 crore this year".


The government had given strict instructions to provide loan for all students who had secured seats in higher educational institutes and people should utilise the facility, he said.