AAP govt approves loan scheme for higher education

The AAP government today approved an education scheme under which loans of up to Rs 10 lakh will be provided to students pursing higher education in the national capital.
Under the 'Higher Education Credit Guarantee Scheme', students would be provided loans up to Rs 10 lakh without any collateral or third party guarantee or margin money. There would be no processing charges for the same.
According to a senior government official, students pursuing any skill development course or diploma or degree course after finishing qualifying examination from any school and educational institution in Delhi are eligible under this scheme.
The scheme will also be applicable for ITIs and polytechnic colleges.

In the run up to the 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.
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.

"Repayment of loan will be in Equated Monthly Installments (EMIs) of 15 years. The maximum interest rate would be lower than the normal education loans as compared to the banks.

"The scheme would cover all government institutions, universities, constituent colleges of Delhi University, ITIs and polytechnics, private/self financed institutions with NAAC/NBA rating of A/B. In the interim, private/self financed institutions which have rating of A+, A by 3rd State Fee Regulatory Committee (SFRC) will also be covered," the official said.
The officer said the institutions of skill development such as courses by world class skill centre or any other technical training and skill development institution specified by Delhi government are also covered under the scheme. Other reputed and recognized Institutions may be considered by banks on the basis of employability.

The scheme covers all recognised degree and diploma, skill development courses of approved institutions through entrance test and merit based selection.
"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," official said.