Interest-free loan for IIT students soon

NEW DELHI: HRD minister Prakash Javadekar has announced that following the IIT fee hike every student at the institute can now avail interest-free loan, with household income not exceeding Rs 9 lakh per annum. The proposal for interest-free loans for all IIT students is learnt to have got the approval of the finance ministry.

The HRD ministry had earlier this year announced a fee hike from Rs 90,000 per annum to Rs 2 lakh per annum across IITs starting 2017.

The fee hike was offset through complete exemption of tuition fee for SC/ST and physically disadvantaged students. Earlier, interest-free loans were to be made available under the Vidya Lakshmi scheme to wards of those with an annual income not exceeding Rs 4.5 lakh.

The latest ministry statement says the interest subvention will be made available to all students whose household income does not exceed Rs 9 lakh per annum.

This will apply to all IIT students for a period of five years, including the integrated degree course and one-year moratorium period.

This interest subventions will be borne by IITs through their internal accruals. The minister has also announced approval of a new Kendriya Vidyalaya in Congress president Sonia Gandhi’s Lok Sabha constituency Raebareli besides one in Madhya Pradesh BSF camp at Tekanpur.