Students of technical and professional courses from weaker section of the society will no longer have to take the burden of high interest rate for repaying their education loans. For, the State Government has now agreed to relax the interest burden on such students under a new scheme - Odisha State Interest Subvention Scheme (OSISS).
The Government recently gave its nod to the scheme, a draft of which was submitted by the Higher Education Department earlier this year. The interest subvention scheme will be applicable for students from the current academic session itself.
According to official reports, around Rs 100 crore is disbursed annually in the shape of education loans to students of technical courses by various banks in the State. Currently, the Central Government bears the interest for the moratorium period (time during the loan term when the borrower is not required to make any repayment). In case of such students, the period encompasses course duration and one year or six months after getting the job, whichever is earlier. The OSISS will be applicable after end of the moratorium period under the Central Scheme to provide interest subsidy.
Under the scheme, the State Government will provide interest subsidy of six per cent and four per cent to girls and boys respectively. A student would be eligible for the scheme if his family’s annual gross income from all sources is at an upper limit of Rs 4.5 lakh. “For example, if a girl student is paying interest at the rate of 11 per cent per annum on the borrowed amount, the State Government will bear six per cent of the interest and the student would pay the rest five per cent,” said Higher Education Minister Pradeep Panigrahy. He said the benefit under OSISS will be applicable to bank loan upto Rs 10 lakh.
The OSISS would apply for educational loans availed from nationalised banks for pursuing any of the approved courses after Class XII in technical and professional areas from recognised institutes under the educational loan scheme of Indian Banks’ Association (IBA).
As far as mode of payment is concerned, the Government has decided to credit the interest subsidy to students’ bank account through Direct Benefit Transfer (DBT) through the electronic credit system that was introduced by the Finance Department.
--
Reference
Reference
http://www.newindianexpress.com/
Thank you for sharing such valuable information with us. Click here to know more
ReplyDeleteAbroad Study Loan