The Union Education Ministry is working on a new scheme to make the education loan process simple and easy for students. Under this, high quality research journals will be made available free of cost to students and faculty studying in government institutions.
Education Minister Dharmendra Pradhan has instructed the ministry to further simplify the application process for education loan under the new scheme ‘PM Vidyalakshmi’ and reduce the paperwork. Apart from this, preparations are also being made to bring a new scheme for research journals.
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Launch of new portal by December
According to officials of the Higher Education Department of the Education Ministry, the existing portal will be launched in a new form by the end of December. At present students are applying through the old portal, in which the application format is old. Many changes will be made in the new portal to simplify the application process. Which includes removing non-essential parts and shortening the online form to two pages. For this, the portal will have to be integrated with the bank and the bank will have to make changes in its software.
Official figures show that about 3 lakh students get education loans in a year, out of which most of the students take loans for B.Tech and MBA courses. The average size of loan is around Rs 10 lakh. Although, no upper limit has been set for education loan under the new scheme, interest rate rebate will be provided on loans up to Rs 10 lakh. About 1 lakh students are expected to benefit from this relaxation.
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Both public and private banks will be included in the new portal
According to the Ministry of Education, apart from public sector banks, private banks will also be included in this scheme. However, as per the data of the last 10-15 years, 12 public sector banks have disbursed about 98 per cent of education loans, including major banks like Canara Bank, SBI, Union Bank, Punjab National Bank, Bank of Baroda, Bank of Maharashtra, and Bank of India. Some rural banks will also participate in this scheme.
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