The Chhattisgarh Government had been providing interest-free higher education loans to the students from insurgency infested districts of the State, officials stated. About Rs46 crore loans were distributed to 798 students under the Chief Minister’s Higher Education loan Interest Subsidy Scheme in the current financial year 2014-15.
The State Government had been providing loan facility through various banks for higher education at one per cent interest. The maximum loan that could be extended is about Rs4 lakh. Higher Education Minister Prem Prakash Pandey said that the children of parents whose income is Rs2 lakh per annum are given a loan under the Mukhyamantri Higher Education loan Interest Subsidy Scheme.
The students of various categories are given loans under the scheme. Pandey said that Canara Bank is the nodal bank for this scheme. The State government started providing provide higher education loans to students at low interest rate last year the way it was provided to 900 youths in 2013
The BJP in its election manifesto had also promised that it will provide higher education loan to students at the interest rate of one per cent. In a move to fulfil its promises, Chief Minister Raman Singh had held a high- level meeting and decided to slash interest rate on higher education loans.
Interestingly in 2013, the State government had provided a total loan of more than Rs17 crore to about 900 youths for their higher studies. The government last year started providing education loan to the youths in the 16 Maoist affected districts for higher education free of interest. Each student could be given a loan up to Rs4 lakh.
The Technical Education Directorate had issued directives to the principals and directors of all the engineering colleges, pharmacy, management, MCA, and diploma colleges in this regard. Similarly, Engineering, Medical Education, Agriculture Engineering and several other subjects have also brought under the loan scheme.
In the circular the Higher Education Department had stated last year that the colleges and educational institutions should hold loan disbursal camps in coordination with the banks.
If the student pays back the loan on time in regular installments after moratorium, he will be charged only one per cent interest rate. Remaining interest, the State government will pay by transferring it to the bank directly.