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Central Government announces concession on education loan
Posted on: 29/Aug/2015 2:22:18 PM
The department of Human Welfare of the central government has declared extension of the pay-back period for the repayment of education loans taken by the students for their higher studies.
In a circular dated 20th August, the ministry has announced that the students who availed education loans during the period from 2009 to 2014 can apply to the banks for concession on interest for the loan.This is 1-time concession to be availed immediately.
Banks offer loans for students to pursue higher education. Concession in the form of holiday period for the pay-back period is given during the study of the course and a minimum of 6 months to 1 year after getting into a job.
The government undertakes to pay the interest for the education loan taken by the students pursuing B Tech/ BE/MBBS courses during the period of their course study. This concession was announced during 2009.
One of the conditions is that the annual income of the parents of the students availing education loan should not exceed Rs. 4.5 Lakhs.
During the course of education, central government will undertake to pay the due interest.
This concession is being offered to the education loans taken from Indian Banks Association. The rule stipulates that the students should repay the principal and interest after completing their course and getting a job.
The parents/students who have not so far applied to avail this concession can now apply to get it.
Canara Bank will undertake the responsibility of compiling the complete details of concessions and disburse the same to other banks.
Central Human Welfare Department has announced that all the banks should upload the data regarding concessions offered on education loan on the internet.
All websites of banks will be in operation on the internet for 15 days from 1st September till 15th September. Parents of the students and the banks can apply for getting this concession during this 15-day period.
Annual income of the parents should not exceed Rs. 4.5 Lakhs. The central government will pay the due interest on the education loan on behalf of the student during the course period.
