Union Finance Minister Nirmala Sitharaman announced the offer of financial assistance for loans up to Rs 10 lakh for higher education institutions in India. According to the Finance Minister, the model sill loan scheme will be revised to facilitate loans up to Rs 7.5 lakh with a government-promoted fund guarantee. This will be a benefit to almost 25,000 students every year.
"For helping our youth who have not been eligible for any benefit under govt schemes and policies, the government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions," FM Nirmala Sitharaman said.
"The model skill loan scheme will be revised to facilitate loans up to RS 7.5 lakh with a guarantee from government funds. This measure is expected to help 25,000 students every year," she added.
The NDA-led Centre government also announced a new skill development programme, which will help more than 20 lakh youths over 5 years.
"1,000 ITIs will be upgraded in the hub and spoke model, course content and design will be aligned to the skill needs of the industry, and new courses will be introduced for emerging needs. I am happy to announce a new centrally sponsored scheme for skill development in which 20 lakh youth will be skilled over a period of 5 years," the FM said in her Union Budget speech.
E-vouchers will be given to over 1 lakh students with an interest subvention of 3 per cent on the loan amount, said FM. "E-vouchers for this purpose will be given directly to one lakh students every year with interest subvention of 3 per cent of the loan amount," Sitharaman added.