Finance Ministry

Waiver of education loans of poor-middle class family students who could not get employment-Govt denies such plans-Press release

Waiver of education loans of poor-middle class family students who could not get employment-Govt denies such plans-Press release

Ministry of Finance

25-November, 2016

Write off education loans given to the poor and middle class family students who could not get employment
Government has no Plan to write off education loans given to the poor and middle class family students who could not get employment. However, for the students belonging to economically weaker sections, an interest subsidy scheme on educational loans is in place. Under the scheme during the period of moratorium full interest subsidy is available for educational loans disbursed on or after 1st April, 2009.

The Indian Banks’ Association (IBA) has formulated a Model Educational Loan Scheme for adoption by banks. As per the scheme, Banks may also provide additional moratorium upto 6 months at a time taking into account spells of under-employment/unemployment during the tenure of the loan.

Government of India has launched a Credit Guarantee Fund Scheme for Education Loans (CGFSEL) wherein collateral free loan is given upto Rs.7.5 lakh. The fund provides guarantee against default in repayment of education loans to the extent of 75% of the amount in default.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

*****

DSM/KA
(Release ID :154365)
----------- Similar Posts: -----------
Share

Recent Posts

  • Income Tax

In absence of mala fide intention bank should not be treated as assessee in default

In absence of mala fide intention bank should not be treated as assessee in default for late deduction and deposit…

19 hours ago
  • Income Tax

Whether bank account was fraudulently open in the name of assessee is question of fact

Whether bank account was fraudulently open in the name of assessee is question of fact. High Court declined to entertain…

21 hours ago
  • Concurrent Audit

SBI Concurrent Auditor Empanelment of Chartered Accountant Firms 2024-25. Last date 18.05.2024

SBI Concurrent Auditor Empanelment of Chartered Accountant Firms for FY 2024-25 SBI Concurrent Auditor Empanelment of CA Firms for FY…

23 hours ago
  • Companies Act

Change in the constitution of Appellate Authority for CAs CSs and Cost Accountants

Change in the constitution of Appellate Authority for CAs CSs and Cost Accountants In 2015, the Ministry of Corporate Affairs…

2 days ago
  • VAT

Trade Tax refund withheld beyond stipulated period & adjusted from demand unjustified – SC

Trade Tax Department was unjustified in retaining refund beyond stipulated period and adjusting it against default notices issued subsequently. In…

2 days ago
  • Income Tax

Notice issued u/s 143(2) prior to filing of return of income assessee is invalid

Notice issued u/s 143(2) prior to filing of return of income by the assessee was invalid. Before filing ITR provisions…

3 days ago