The Ministry of Human Resources Development (MHRD) has decided to provide interest-free loans to IIT students under its Vidyalaxmi scheme for the tuition fee payable from the current academic year.
Many students have of the Indian Institute of Technology, Bhubaneswar have opted for loans under the scheme, informed its Director Prof R V Raja Kumar.
“IIT Bhubaneswar negotiated with SBI, Bhubaneswar and the bank has agreed to provide loans at an interest rate of 9.24 per cent after the interest subvention period of five years are over. A number of Undergraduate students of IIT Bhubaneswar have shown interest and are expected to avail the facility,” the Director informed.
The MHRD has decided to provide interest subvention on the education loans, for all students admitted for undergraduate and the 5-year integrated degree programmes, covering the period of the study plus one year of moratorium (not exceeding 5 years in total) provided the student’s parents annual income doesn’t excess Rs9 lakh, the loan amount will cover only the tuition fee and the term of the loans sanctioned under this dispensation will be 10 years.