Thiruvananthapuram: The State government has announced a project for the annual repayment of the last two out of the twelve monthly installments for those who repay their loans on time. This was announced in the budget on Friday.
The scheme will be implemented by connecting it with the education loan scheme of the Centre. An amount of Rs 200 crore will be set aside for these initiatives.
Under the Central government loan scheme, the interest payable by the students belonging to the economic welfare scheme who availed of an educational loan for technical and professional courses in India will have full interest moratorium for the course period plus one year or six months after getting a job, whichever is earlier.
The State government has also decided to introduce a State financed interest subvention scheme for students availing loans for studying in polytechnics.
The Government has also announced that it would provide assistance for the repayment of those loans in all cases where the banks agree to settle the defaulted loan on the payment of the principal amount.
