The State Chief Minister Oommen Chandy announced this during his Mass Contact Programme here.
The Government would pay the interest dues totalling Rs 75 lakh to banks on loans availed by students of various courses, belonging to the Below Poverty Line (BPL) families.
People in large numbers had turned up to meet Chandy at the programme in this predominantly rural district since morning seeking solutions to their grievances.
A total of 18,480 petitions on a host of issues ranging from welfare pensions to medical aid had been received in advance. In addition, fresh petitions were received and looked into by the Chief Minister and officials present at the venue.
Chandy has embarked on the second phase of the Mass Contact Programme last month and has already covered five of the 14 districts.
The programme has won the UN's Public Service Award as a unique initiative in which the head of a government directly engaging with people at the grass roots.
Though government had ordered a judicial probe into the fraud, LDF have refused to give up their demand for Chandy's resignation.
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