Students who have taken education loans up to ₹9 lakh now stand to benefit from a loan repayment package announced by the Finance Department.
A press note issued here on Friday said the package would benefit those with an annual family income of up to ₹6 lakh. For students with physical disability of more than 40%, the annual family income would be ₹9 lakh.
The package is applicable to students who are doing recognised technical and professional courses. The package does not cover students who gained admission in the management and NRI quotas and those studying in unrecognised institutions.
However, those who gained admission for nursing courses in the management quota would be covered under this scheme. The package is applicable to those who started repaying their loans before April 1, 2016.
During the first year the government would repay 90% of the loan amount. During the second year the government would pay 75%, during the third year 50% and 25% during the fourth year.
For those who have taken loans up to ₹4 lakh and whose loans became non-performing assets (NPAs) before March 31, 2016, the government would pay 60% of the loan amount. The rest should be paid by the student. If some payment has been made earlier, it would be deemed to be a share of that 40%.
For those who have taken loan up to ₹9 lakh and whose loans became NPAs, the government would pay 50% of the loan amount subject to a maximum of ₹2.4 lakh with the permission of the bank.
In cases where the candidate dies or becomes mentally or physically challenged during the tenure of the loan, the government would pay the entire loan amount provided the banks write off the interest amount, the press note said.
