The Credit Guarantee Scheme, part of the Aam Aadmi Party’s (AAP) 70-point action plan, was discussed for the first time on Thursday with students from different Delhi colleges.
The scheme is being introduced to help students who wish to pursue higher education. A loan of up to Rs. 10 lakh will be given by the bank with the government as a guarantor.
The student will get a gap year after completing his/her education, after which the repayment period of the loan has been earmarked at 15 years. The interest rate will be 2% in addition to the base rate offered by the bank. The scheme also has a mandatory insurance with a varying premium.
This scheme will be implemented in all government and private institutions with NAAC and NBA rating, self-financing institutions affiliated to Guru Gobind Singh Indraprastha University (GGSIPU) and institutions that have A+, A and B rating with the state fee regulatory committee (SFRC).
The scheme is in its draft form and has been prepared by a committee comprising the secretary of education, vice chancellors of Indraprastha University, the Delhi Technological University (DTU), the secretary of finance who is the chairman of the committee, along with representatives from the Indian Bankers Association.
Speaking at the interaction, education minister Manish Sisodia said: “The government is committed to fulfilling promises made before the election. This is our first interaction; we will continue to have such interactions with parents.”
“There will be a direct interaction between the bank and the students. Only the tuition fee will be directly transferred by the bank,” said Punya Srivasatava, the secretary of education. Abhishek, a student from Ramjas College, questioned if the scheme would be applicable for anyone who wants to study outside Delhi or abroad, to which the minister said he would examine the issue.