Loan /Aid for Education
Education is central to the development in any country. Every government levies policies in the National and State level to ensure that this basic need of the population is met through appropriate public and private sector initiatives. With a gradual reduction in government subsidies higher education is getting more and more costly and hence the need for institutional funding in this area.
The scope of education has widened both in India and abroad covering new courses in diversified areas. Development of human capital is a national priority and common enterprise should be that no deserving student is denied opportunity to pursue higher education for want of financial support. Loans for education should be seen as an investment for economic development and prosperity. Knowledge and information would be the driving force for economic growth in the coming years
Objectives of the Scheme
The main emphasis of the Educational Loan Scheme is that every meritorious student though poor is provided with an opportunity to pursue education with the financial support from the banking system with affordable terms and conditions. No deserving student is denied an opportunity to pursue higher education for want of financial support.
In short, the scheme aims at providing financial assistance on reasonable terms:
- to the poor and needy to undertake basic education.
- to the meritorious students to pursue higher/professional/technical education.
The scheme could be adopted by all Commercial Banks. The scheme provides broad guidelines to the banks for operationalising the educational loan scheme and the implementing bank will have the discretion to make changes suiting to the convenience of the students/parents to make it more customer friendly. More about Education Loan (External website that opens in a new window).
Source: National Portal Content Management Team, Reviewed on: 09-07-2012