The Madhya Pradesh government has decided to bring some relief to the parents who lose their children during studies and are forced to repay the remaining education loan to the bank. Now the government will pay 50% of the outstanding loan amount in such cases, while the rest will be borne by the bank.
“The parents who lose their children bear a double shock. First shock is the death of their child, and then (there are) banks that come knocking at their doors asking for repayment of the remaining part of education loan,” said Narottam Mishra, the government spokesperson, after a cabinet meeting on Tuesday.
The new scheme also applies to the students who suffer disability during studies, Mishra said, adding that the cabinet approved the proposal on Tuesday.
Talking to HT, state finance minister Jayant Malaiya said 50% of the amount to be borne by banks could be covered under the insurance schemes such as Pradhan Mantri Jeevan Jyoti Bima Yojna and Pradhan Mantri Suraksha Bima Yojna. “The formula is being worked out but in any case parents would be provided relief,” he said.
Malaiya said a case from Tikamgarh where a student died and parents were “harassed” by the bank for loan repayment had brought the issue to the notice of the government.
He said that since 2012 only three such cases had been reported bringing the total amount to Rs 16.5 lakh. “The amount in such cases is not large but the social impact that this government scheme will bring is huge,” he said.
A total sum of Rs 3,420 would be required per student for insurance so that banks too could cover their loss, added Malaiya.
Government spokesperson Mishra said that the cabinet also deliberated on how to provide houses to all poor in the state. Chief minister Shivraj Singh Chouhan has instructed officials to work out modalities of the promises made by him in his Independence Day speech, he said.
Chouhan had asked officials to develop a state fund for farmers that could bring them relief during adverse times.