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Friday, 6 October 2017

Delhi Government's Higher Education Loan Scheme Approved; 10 Points!!


New Delhi: Delhi Lieutenant Governor Anil Baijal today approved the AAP government's students higher education loan scheme, Deputy Chief Minister Manish Sisodia said here. LG has approved the higher education and skill development loan guarantee scheme under which students will be provided loans by banks with the government as a guarantor. Mr Sisodia, who also holds the education portfolio said in a tweet that the scheme has been cleared by the Lt. Governor and added that it will help thousands of students and parents.

Last month, Mr Sisodia had accused the LG of "blocking" the scheme when the latter had asked the Arvind Kejriwal-led government to consult the Centre on it. In response to Mr Sisodia's accusations, Governor Baijal had written to the deputy chief minister, dubbing his statement as "unfortunate".

In a letter to Mr Sisodia, the Lieutenant Governor had suggested incorporation of some safeguards including ensuring of responsibilities of the lending institutions and linkage of loan with Aadhaar number in the education loan scheme. Thereafter, the deputy chief minister had written a letter to the governor, apprising him that the government has already incorporated many of safeguards and would further include ideas for betterment of the scheme.


1. Students will get education loans of up to Rs. 10 lakh from banks while the government will be their guarantor.

2. The AAP-led Delhi government had started the scheme two years back to provide loans to students for higher education, even if they didn't have any property or land as security. This year, the scheme was extended to Delhi students pursuing courses outside Delhi in government recognised institutions.

3. Students, who have cleared Class 12, would be eligible for the loan meant for higher studies. According to the scheme, a collateral or third party would not be required to avail the loan.

4. Children of Delhi government employees or officials/government servants posted with Delhi government were also eligible under the scheme. There is no restriction regarding the students' age.

5. According to the scheme, a collateral or third party would not be required to avail the loan.

6. Expenses covered under the education loan scheme are -- course fee, library/lab fee, purchase of books, equipment, instruments, uniforms, computer, reasonable boarding and lodging. Rate of interest to be charged in this scheme is base rate plus 2 per cent, the Delhi government said in a statement in 2015.

7. One per cent interest concession may be provided by the bank, if interest is serviced during the study period and subsequent moratorium period prior to commencement of repayment, the statement said then.

8. Lieutenant has asked the Delhi government to incorporate all safeguards as mentioned by Deputy Chief Minister Manish Sisodia in a time-bound manner.

9. Chief Minister Arvind Kejriwal had also appealed to the Lieutenant to approve the scheme, saying it ensured best quality education to poor students.

10. Education has been a primary area of concern for the AAP Government in Delhi. In the budget which was presented in March this year, the government alloted Rs. 11,300 crore for education, which is 24% of the total Budget outlay. Last year, the budget allocation for education was Rs. 10,690 crore.

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