CHENNAI: Cooperation Minister K R Periyakaruppan said on Tuesday that cooperative banks will offer education loans of up to Rs 5 lakh starting from this academic year. So far members of cooperative societies were issued loans of a maximum of Rs 1 lakh.
In a release, Periyakaruppan said these loans would cover hostel fees, book fees, food expenses, tuition fees and other related costs, and can be obtained through central district cooperative banks and other banks. The facility is available for students pursuing arts and science, engineering, medical, and other professional courses, ranging from the first year to the third year of study.
Periyakaruppan also said students who avail themselves of education loans can begin repaying the dues six months after completing their studies and can complete the repayment within five years. An interest of 10 % will be levied on the loan amount.
He also said students from minority communities can apply for loans from the Tamil Nadu Minorities Economic Development Corporation, which will be distributed through cooperative banks.
Five-year time
Students who take loans can begin repaying the dues six months after completing their studies and can complete the repayment within five years