Nitish kumar launches a student credit card scheme for the students who have passed senior secondary education and wish to persue higher studies. This will be treated as Education Loan. The withdrawing limit will be upto 4 lakhs where interest rate will be born by the Bihar government.
The state cabinet gave its nod to Student Credit Card Scheme. Under this scheme, the 12th passout students can take education loans of up to Rs 4 lakh for pursuing higher education. The government will act as guarantor and provide support to the students to get loan from banks. The students who take admission to any recognised institution will be eligible for loan, irrespective of their financial background. The Bihar government will sign a memorandum of understanding this month with the banks and the interest rate will be kept at 2 per cent above the benchmark rate.
State Bank of India has increased its limit for overseas education loans to Rs. 1.5 crore from Rs. 30 lakh currently. SBI is also increasing loan amount of government guarantee loan to Rs. 7.5 lakh from Rs. 4 lakh. SBI is an improving demand for education loans since it combined with the government Vidya Lakshmi portal, and 10 percent of its education loan applications are already through the portal. The current education loan book of SBI stands at Rs. 15,000 crore and it is expecting a growth of 15 per cent and 20 per cent in number of loans disbursements respectively
State Bank of India, Bank of Maharashtra have reduced interest rates on educational loans by about 25 basis points over the past weeks. This move has brought the interest rates down to 2008 levels. Depending on the tenure and the loan size , the new interest rates for loans are between 10.8% and 12.2% at public sector banks. Banks had charged interest rates higher than 13% for the previous year.
Top private Banks, ICICI Bank and HDFC Bank have reduced their interest rate on educational loans by nearly 200 bps since June 1, to between 13% and 17%, with loans being half a percentage point less for girl students.
Economically weaker students aspiring to pursue professional and technical education can now avail study loan up to Rs 10 lakh at one per cent interest rate. The state government will create a corpus of Rs 500 crore from its own resources for the subsidised loan scheme christened Kalinga Sikshya Sathi Yojana (KSSY). The subsidized higher education loan was part of BJD election manifesto before the simultaneous Lok Sabha and state assembly elections.
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