Question : Interest Free Education Loans

(a) whether the Government has cancelled the interest free education loan for poor students in the country, if so, the details thereof and the reasons therefor; and

(b) the corrective steps being taken by the Government in this matter?

Answer given by the minister

(MINISTER OF STATE IN THE MINISTRY OF FINANCE)



(a) & (b) For the students belonging to the economically weaker sections, an interest subsidy scheme, namely Central Sector Interest Subsidy Scheme (CSIS), is operational under which full interest subsidy, on educational loans uptoRs 7.50 Lakh, is available during the period of moratorium on loans availed under the Model Education Loan Scheme from Scheduled Banks.

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