Government scheme to cover students pursuing professional courses
10.5 to 11.5 per cent interest to be charged on loansBanks will be asked to waive third party guarantee Loans up to Rs. one lakh will be granted
HYDERABAD: Students pursuing medical, engineering and other professional courses, including veterinary, agriculture MBA and MCA courses, hereafter will get loans up to a certain limit from banks without any insistence on collateral security.
The Government has formulated a scheme to help meritorious students lacking wherewithal to join the courses after admission. The scheme provides for the college signing a Memorandum of Understanding with a bank to extend loans to the needy. It comes into force with immediate effect. Finalised by the Chief Minister at a high level meeting here on Thursday, the scheme may not, however, be of much use during this academic year as admissions are over in all the professional courses. The meeting decided to ground the scheme with a `Loan mela' in October after a bankers' meeting on next Monday.
The banks would be asked to waive third party guarantee and grant loans up to Rs. one lakh on the basis of students' signature.