<p>This was done apparently to ward off criticism that the government’s reforms were turning education into a costly affair.<br /><br />The scheme would be available from this academic session to students whose annual family income would be less than Rs 4.5 lakh. They could avail of a loan from any of the commercial banks after securing admission to professional courses in India or abroad through merit-based selection process. <br /><br />The HRD Ministry has finalised the modalities in consultation with the Indian Banks’ Association. <br /><br />For studies in India, the courses for which students could apply for loan included graduation, postgraduation and PhD and also professional courses like Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer and also ICWA, CA and CFA.<br /><br />Courses conducted by IIM, IIT, IISc, XLRI and NIFT would also come within the ambit of this education loan.<br /><br />Expenses which would be considered for loan include fee payable to college and hostel; examination/ library/ laboratory fee and also cost of purchasing books, equipment and uniform.<br /><br />Travel expenses or passage money for studies abroad would also be considered for the loan along with the cost of purchasing computers, if that is essential for completion of the course. <br /><br />While a maximum amount of Rs 10 lakh would be given for studies in India, it would be Rs 20 lakh for that in a foreign country. Up to Rs 4 lakh, no interest would be charged.<br /><br />For studies in India and for a loan amount more than Rs 4 lakh, 5 per cent interest would be charged. For those studying abroad the rate would be 15 per cent. Under the scheme, proof of income is required to be certified by authorities to be designated by the state governments. <br /><br />The HRD Ministry has written to all chief secretaries of states/union territories to intimate the designated authority so that banking authorities at the branch level where students would be approaching for availing of the benefit of the scheme would be aware of the same. <br /><br />The benefits</p>.<p>* Students whose annual family income is below Rs 4.5 lakh eligible<br />* Courses include graduation, post-graduation, PhD and professional courses<br />* College, hostel fees; exam, laboratory and library fees can be counted as expenses<br />* Travel expenses for studies abroad, along with cost of computers also will be considered for loans<br />* Students studying in India entitled for a maximum amount of Rs 10 lakh, while those going abroad will get Rs 20 lakh </p>
<p>This was done apparently to ward off criticism that the government’s reforms were turning education into a costly affair.<br /><br />The scheme would be available from this academic session to students whose annual family income would be less than Rs 4.5 lakh. They could avail of a loan from any of the commercial banks after securing admission to professional courses in India or abroad through merit-based selection process. <br /><br />The HRD Ministry has finalised the modalities in consultation with the Indian Banks’ Association. <br /><br />For studies in India, the courses for which students could apply for loan included graduation, postgraduation and PhD and also professional courses like Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer and also ICWA, CA and CFA.<br /><br />Courses conducted by IIM, IIT, IISc, XLRI and NIFT would also come within the ambit of this education loan.<br /><br />Expenses which would be considered for loan include fee payable to college and hostel; examination/ library/ laboratory fee and also cost of purchasing books, equipment and uniform.<br /><br />Travel expenses or passage money for studies abroad would also be considered for the loan along with the cost of purchasing computers, if that is essential for completion of the course. <br /><br />While a maximum amount of Rs 10 lakh would be given for studies in India, it would be Rs 20 lakh for that in a foreign country. Up to Rs 4 lakh, no interest would be charged.<br /><br />For studies in India and for a loan amount more than Rs 4 lakh, 5 per cent interest would be charged. For those studying abroad the rate would be 15 per cent. Under the scheme, proof of income is required to be certified by authorities to be designated by the state governments. <br /><br />The HRD Ministry has written to all chief secretaries of states/union territories to intimate the designated authority so that banking authorities at the branch level where students would be approaching for availing of the benefit of the scheme would be aware of the same. <br /><br />The benefits</p>.<p>* Students whose annual family income is below Rs 4.5 lakh eligible<br />* Courses include graduation, post-graduation, PhD and professional courses<br />* College, hostel fees; exam, laboratory and library fees can be counted as expenses<br />* Travel expenses for studies abroad, along with cost of computers also will be considered for loans<br />* Students studying in India entitled for a maximum amount of Rs 10 lakh, while those going abroad will get Rs 20 lakh </p>