The Cabinet Committee on Economic Affairs (CCEA) today approved continuation of the Credit Guarantee Fund Scheme for Education Loans and continuation and modification of the Central Sector Interest Subsidy (CSIS) Scheme with a financial outlay of Rs 6,600 crore for the period from 2017-18 to 2019-20, an official release said.
This will provide education loans to 10 lakh students during this period, it added.
The Credit Guarantee Fund Scheme for Education Loans provides guarantee for the education loan disbursed by banks without seeking any collateral security and third-party guarantee, for a maximum loan amount of Rs 7.5 lakh per student.
Under the CSIS Scheme, which was launch in April 2009, full interest subsidy is provided for education loans taken from scheduled banks for all the professional/technical courses in India.
Students with annual gross parental income up to Rs 4.5 lakh are eligible for the scheme and the loans are disbursed without any collateral security and third-party guarantee.
An amount of Rs 9,408.52 crore has been disbursed towards interest subsidy and 25.10 lakh students have benefitted till date.
The CCEA also approved a proposal of the Department of School Education and Literacy to formulate an integrated scheme on school education with an estimated allocation of Rs 75,000 crore over a period