HP CM announces Rs 20 lakh education loan for students from underprivileged families

Students in Himachal with an annual family income of less than Rs 4 lakh can now apply for an education loan of up to Rs 20 lakh for their higher studies, Chief Minister Sukhvinder Singh Sukhu said on Tuesday.

The students, up to the age of 28 years, will be eligible to apply for the loan at a nominal interest rate of one per cent under the Mukhya Mantri Vidyarthi Protsahan Yojna.

The loan will cover the cost of boarding, lodging, tuition fee, books and other education-related expenses, Sukhu said in a statement issued here on Tuesday.

Read | All you need to know about education loans

The Rs 200-crore scheme announced in the first budget of the Congress government was approved by the cabinet on Monday.

Students with a minimum of 60 per cent marks in previous classes can avail of this education loan to pursue diplomas and degrees in professional and technical education, the statement said.

However, this facility does not apply to the students pursuing their studies through correspondence or online courses and it will be applicable to full-time courses only, it said.

Students can apply through an online portal by submitting all the requisite documents. If found eligible, the Director of Higher Education will recommend them to the concerned bank for releasing the first instalment of the loan.

Until the online portal is operational, the candidates can fill a prescribed proforma and send the scanned documents via email to the Director of Higher Education.