THIRUVANANTHAPURAM: The Finance Department on Friday published the guidelines for the government’s Education Loan Repayment Scheme.
The scheme is applicable to education loans not exceeding Rs 9 lakh, and to students whose family income does not exceed Rs 6 lakh per annum. The income ceiling is Rs 9 lakh for differently-abled students who have a 40 per cent disability.
The scheme is restricted to recognised technical and professional courses in India. Management and NRI quota students and students of unrecognised educational institutions will not be eligible. Management quota nursing students have been included in its ambit, however.
The scheme will apply to loans whose repayment began before April 1, 2016. The government will bear 90 percent of the amount repayable during the first year and 75 percent in the second year. The government will bear 50 percent of the repayable amount in the third year and 25 percent in the fourth year.
For loans up to Rs 4 lakh which were deemed non-performing assets before March 31, 2016, the government will bear 60 per cent of the principal amount. The remaining 40 per cent has to be borne by the loanee.
For loans between Rs 4 lakh and Rs 9 lakh that have turned NPAs, the state government will shoulder 50 percent of the principal amount, subject to a maximum of Rs 2.4 lakh.