Education loans: Delhi govt to stand guarantee

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Educational Loans

• Education loans Delhi govt to stand guarantee

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• The student will get a one -year moratorium after
  completion of his or her degree or diploma course
  and can repay the loan through EMIs over 15
  years.
• We are taking these steps for the benefit of the
  future citizens of Delhi. We have an in-built
  trust that they will repay their loans, said
  Sisodia
• He Delhi government is planning a scheme in which
  it would stand guarantee for education loans
  procured by students pursuing higher education in
  institutions in the city, Deputy Chief Minister
  and Education Minister Manish Sismondi said on
  Thursday.

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• According to the proposed Higher Education Credit
  Guarantee Scheme, the government will stand
  guarantee for education loans up to Rs 10 lakh
  for students who have completed their Class XII
  from Delhi. The student will get a one -year
  moratorium after completion of his or her degree
  or diploma course and can repay the loan through
  EMIs over 15 years.
• This government is fully committed to education.
  The construction of a bridge can be delayed by
  six months, but if a student is denied an
  opportunity, an entire generation suffers,
  Sismondi told students from various colleges.

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• He said often banks do not grant loans to
  students from underprivileged backgrounds as no
  one stands guarantee. Jiske paas koi na ho, uske
  paas sarkar hai, Sisodia told the gathering at
  the Delhi secretariat auditorium. The scheme will
  be open to students from various financial
  backgrounds.
• We are taking these steps for the benefit of the
  future citizens of Delhi. We have an in-built
  trust that they will repay their loans, said
  Sismondi.
• He said that the government will have to make
  some provisions for this in the budget to keep
  seed money for loans. The budget provision will
  be discussed. The banks too have to feel
  guaranteed, Sisodia told The Indian Express.

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• A senior government official said the government
  plans to keep Rs 30 core aside for student loans
  and the interest accrued may be used for
  repayment of loans, if necessary. This is the
  first government to propose such a scheme for
  students. The national default on student loans
  is about 7 per cent. There will not be too many
  defaulters. The amount that is being considered
  is Rs 30 core, but it may be changed later, the
  official said.
• Education secretary Punya Srivastava explained
  the draft provisions of the scheme that entails
  loans on interest rates of base rate plus 2 per
  cent that will cover books, equipments, tuition
  and other fees and hostel and boarding charges as
  well. She added the scheme will apply to all
  government and private institutions with the
  National Assessment and Accreditation Council or
  the National Board of Accreditation rating of A
  or B, and self-financing institutions affiliated
  with Guru Gobind Singh Indraprastha University
  with rating of A, A or B.

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• Srivastava also said that there will be a
  grievance redressed committee and mandatory
  insurance under the scheme.
• Students and heads of educational loans
  institutions also gave their feedback about the
  scheme to the minister. Among suggestions
  received were helplines, easy procedure and lower
  interest rates for girl students.
• I had applied for a student loan but I could not
  secure one as the bank reviewed my parental
  income and did not find it satisfactory. But with
  government standing guarantee, I am sure, many
  students will stand to benefit, Sheer Mohammed,
  an IIT Delhi student, said.

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• The scheme will benefit for all students but
  there needs to be more clarity about the interest
  rates that will be charged on student loans,
  said Dolly Sharma, a BA second-year student.
• Source http//indianexpress.com/article/cities/d
  elhi/education-loans-delhi-govt-to-stand-guarantee
  /

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