Educational Loan Scheme has outstanding amount of Rs 34K cr

Total outstanding loans under the government's Educational Loan Scheme were over Rs 34,000 crore in 2009-10, Parliament was informed today.

However, no decision has been taken to set up a credit guarantee fund for the scheme, Minister of State for Finance Namo Narain Meena said in a written reply in the Lok Sabha.

He said total outstanding loans under the scheme were Rs 34,192 as on March 31 this year. The amount of outstanding loan under the Educational Loan Scheme during 2007-08 and 2008-09 was Rs 19,817 crore and Rs 27,646 crore, respectively.

During the previous three fiscals the number of accounts under it also increased from 12.47 lakh in 2007-08 to 18.51 lakh in 2009-10, Meena added.

Replying to a question on plans to set up a credit guarantee fund for the scheme, the minister said: "No such proposal is under consideration. Government has not taken any decision to set up a credit guarantee fund in this regard."

Meena said the Ministry of Human Resources Development has circulated an interest subsidy scheme on educational loan for economically weaker sections (EWS) to banks in May this year which is for students in recognised technical and professional courses.

"In terms of the scheme, full interest subsidy would be provided by government during the period of moratorium/study and would be applicable to students from EWS with a parental upper income limit of Rs 4.50 lakh," he added.