Students from disadvantaged economic backgrounds will no longer face financial problems in pursuit of higher education as the government is set to launch an interest subsidy scheme on educational loans taken by them.
"The government is launching a new scheme on interest subsidy on educational loans taken for professional courses by economically weaker students," HRD Minister Kapil Sibal told reporters here today.
The scheme, which is awaiting the approval of the Cabinet, is intended to make funds available for higher education to a large community of deserving students.
Under the new scheme, students can get loans from government with subsidised interest.
"We will give interest subsidy on education loans taken by students because we are interested in the education of poor students," he said.
However, those students whose family income is less than Rs 4.5 lakh per annum will be eligible under the scheme. The students will avail the benefit for a moratorium period which is one year from completion of the course or six months from joining a job, whichever is earlier.
The scheme has already got the approval of Expenditure Finance Committee. An estimated Rs 4,000 crore will be given to needy students during the 11th Plan period under this scheme.