New Delhi | Continuing with the interest subsidy scheme for students, government has asked banks to give educational loans to all ‘A’ rated universities with minimum formalities.
The banks have also been advised to keep in view the primary societal interest in granting educational loan.
” List of all ‘A’ rated universities, colleges and technical institutions has been forwarded to Indian Banks Association (IBA) for onward circulation to all banks so that students getting admissions in these institutions could get educational loans with minimal formalities, according to the sources.
Moreover, the government has decided to start a Credit Guarantee Fund Scheme for Education Loans (CGFSEL) to guarantee collateral free loans sanctioned to deserving students for higher studies.
The sources also said that Canara Bank would be the nodal bank for all grievances pertaining to interest subsidy and resolve the issues centrally in consultation with the branches of the banks directly.
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