CHENNAI: The higher education department has launched a statewide facilitation mechanism to expedite the sanction of collateral-free education loans for students admitted to engineering, polytechnic, arts and science colleges. The move is aimed at further improving the Gross Enrolment Ratio of Tamil Nadu, which is already leading India in higher education enrolment.
The initiative follows directions issued by Chief Minister C Joseph Vijay during a higher education department review meeting held on July 6, where he instructed officials to take steps to increase enrolment and ensure that eligible students receive collateral-free education loans without delay. Higher Education Minister P Viswanathan said the CM is also likely to announce an increase in the ceiling for collateral-free education loans, which is currently capped at Rs 7.5 lakh. The minister said there would be an understanding between the centre, state, and the banks. The CM would announce a new slab, the minister added.
As part of the new initiative, the Directorate of Collegiate Education has appointed a facilitation officer, at the rank of assistant professor, for every district. Each officer has been provided with a dedicated mobile number to guide students through the loan process.
According to an official communication issued by the Commissioner of Collegiate Education, the facilitation officers, trained by officials from leading banks on education loan guidelines, would provide information to students on eligibility, documentation, and application procedures. Students can directly contact the facilitation officers, who would coordinate with the respective district lead bank managers and function as a bridge between students and the banks to facilitate timely processing and sanction of loans.
The officers would also work in coordination with the nodal officers already functioning in the control rooms established at district collectorates to assist students with college admissions and related services. Information on loan applications, sanctions and pending cases received through the facilitation officers would be shared periodically with the respective district collectors.
The collectors have been tasked with holding regular review meetings with district lead bank managers, district coordinators of banks, facilitation officers, and nodal officers to monitor the progress of education loan disbursal. The meetings would review college-wise and bank-wise applications, the number of loans sanctioned, and pending cases, besides identifying measures required to speed up approvals. Last year, education loans worth Rs 2,860 crore were sanctioned to 1.02 lakh students. This year, the government has set a target of providing loans to 1.5 lakh students, with the total disbursal expected to cross Rs 3,000 crore.