(a) whether the Government has any proposal to extend interest free educational loan
to poor students;
(b) if so, the details thereof and the number of students likely to be benefited under the
Scheme in the coming years; and
(c) the steps taken to ensure hassle free loan to the poor students?
MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI NAMONARAIN MEENA)
(a) & (b): No, Sir. However, a scheme for full interest subsidy during the period of moratorium
on loans taken by students belonging to economicaUy weaker sections from the banks under the
Education Loan Scheme of the Indian Banks` Association (IB A) for pursuing any of the approved
courses of studies in technical and professional streams, from recognized institutions in
India has been introduced by the Ministry of Human Resource Development.
(c): In order to provide better services to students across the country, the Public Sector
Banks (PSBs) have been advised to institute an on-line system, not to reject/ pass on loan
applications to other banks/branches on the grounds of age/area of operation. Further, the
performance of PSBs under Education Loan Scheme is reviewed in quarterly meetings of Finance
Minister with Chief Executives of Banks.