Question : EDUCATIONAL LOANS

(a) the details of the criterion being followed by the banks for disbursing educational loans to students;

(b) the details of the educational loans provided to the students belonging` to the Scheduled Castes and the Scheduled Tribes communities for the last three years and the current financial year, bank-wise;

(c) whether the Government proposes to provide interest subsidy to such students on the educational loans;

(d) if so, the details thereof and if not, the reasons therefor; and

(e) the steps taken by the Government to streamline the procedure for providing educational loan to those students who are deprived of this loan due to the procedural complexities?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMONARAIN MEENA)

(a): The broad operational guidelines are given in the Model Educational Loan Scheme, circulated by Indian Banks` Association (IBA). The main features of the scheme are as under:

Loan Limit

For studies in India	Rs. 10 Lakhs
For studies in abroad	Rs. 20 lakhs
Security Norms
Upto Rs. 4 lakhs	No security. Co-obiigation of parents.
Above Rs. 4 lakhs and upto Rs. 7.5 lakhs	Co-obligation of parents together with collateral	security in the form of suitable third party	guarantee.
Above Rs. 7.5 lakh	Co-obligation of parents together with tangible	collateral security of suitable value alongwith	the assignment of future income of the student	for payment of installments.