Now students from Delhi can apply for a loan to study in govt colleges outside Capital

Till now, the scheme was restricted to institutions in Delhi. The decision to extend the ambit was cleared in a cabinet meeting chaired by chief minister Arvind Kejriwal last month.

Lieutenant Governor Anil Baijal has approved extension of the Delhi government education loan scheme to students from Delhi who wish to study in government institutions outside the Capital.

Education minister Manish Sisodia took to Twitter on Wednesday to share the news with his followers. (Burhaan Kinu/HT PHOTO)

The L-G has also suggested a few safeguards to ensure the scheme remains sustainable and is in the best interest of the students.

Education minister Manish Sisodia took to Twitter on Wednesday to share the news with his followers. “I am grateful to Hon @LtGovDelhi for clearing Delhi govt’s Higher Edu Loan scheme. It will help thousands of students and their parents,” he said on the micro-blogging site.

“The L-G approved the education loan scheme because the government said it had certain safeguards to keep it sustainable. We have suggested certain other safeguards which we hope will be incorporated in a timely manner,” said an official at the LG’s office.

These include ensuring a linkage between educational institutions and the lending institutions. “...due diligence should be taken to ensure that loans are not extended to study at dubious institutions or dubious courses that will not ensure employability,” added the official.

Those who wish to study in private institutions in Delhi can take the loan only if the college/university has been accredited by an A or A+ by a national accreditation authority such as the NAAC.

“One suggestion we have decided to incorporate is that the application process be linked to the National Academic Depository, which has all e-certified courses and institutions. This will make it easier for the banks to access and validate the academic records of the loan applicant,” said Marlena.

Till now, the scheme was restricted to institutions in Delhi. The decision to extend the ambit was cleared in a cabinet meeting chaired by chief minister Arvind Kejriwal last month.

Under the scheme, students from Delhi who wish to pursue higher education are given Rs10 lakh without any collateral or third party guarantee, with the government as their guarantor. Students would be eligible irrespective of their income status, said Marlena. They will be given a moratorium period of the time required to finish the course and year thereafter to find a job, before they have to start repaying the EMIs.

Kejriwal had first spoken of the idea in May this year while addressing government school students who had cleared the IIT-JEE (Mains) exams. The scheme has now been passed in cabinet, and approved by the LG.