New loan scheme without interest finalised
The format for the scheme was finalised after a meeting between the Human Resource Development (HRD) Ministry and the Indian Banks' Association (IBA).
"The scheme provides interest subvention to students for the period of their course. The interest for this period will be paid to the banks by the government," a ministry official said.
The Canara Bank was finalised as the nodal bank for IBA member banks to claim the subsidy amount reimbursement.
The scheme, which was approved by the cabinet last year, provides interest subvention to students with annual family income below Rs 4.5 lakh for the period till there course finishes.
It will provide interest subvention from the academic year 2009-10.