New Delhi: The ministry of Human ResourceDevelopment (HRD) has finalized the modalities for the implementation of a newcentral scheme to provide full interest subsidy during the period of moratoriumon educational loans for students belonging to economicallyweaker sections (with parental family income from all sources of less thanRs.4.5 lakh annually).
The loans will be provided by scheduled banks under the Educational Loan Schemeof the Indian Banks' Association (IBA) for pursuing courses in professional ortechnical streams from recognized institutions in India.
The modalities have been finalized in consultation with IBA. The scheme iseffective for all IBA approved educational loans sanctioned in the form ofeligible students' in respect of approval course of studies from the academicyear 2009-10.
"Under the scheme, proof of income is required to be certified byauthorities to be designated by the state governments. Accordingly, theministry has written to all Chief Secretaries of states and union territoriesto intimate the designated authority/authorities (at thedistrict/sub-district/block etc. levels) to the District Level ConsultativeCommittee (DLCC) so that banking authorities at the branch level where studentswould be approaching for availing the benefit of the scheme would be aware ofthe same," an official press release said.
All scheduled member banks of the IBA have also been advised to take necessaryaction to adopt and implement the scheme so its benefits accrue to the eligiblestudents.
Canara Bank is the nodal bank, for the member banks of IBA, for claimingreimbursement of interests credited to student accounts.
All eligible students who wish to avail of the benefits of the scheme areadvised to approach the respective bank branch from where they availed of theeducation loan and complete the necessary formalities.
These include obtaining the certification in respect of annual family incomefrom the competent authority at the block, tehsil or district level, so thatthe individual student accounts can be credited with the interest due on theloan for the academic year 2009-10 onwards.