Easier loans to students, investors on anvil: Kapil Sibal
Bangalore: Human Resource Development Minister Kapil Sibal has said the National Education Finance Corporation has been asked to provide easier credit rates to investors in the education sector and to facilitate flexibility in repayment of study loans by students. Addressing a gathering at the Indian Institute of Science (IISc)
here on Monday, Sibal said: "To attract more investment in the education sector,
priority-lending rates would be extended to investors. "At the moment we are looking
at two parts of the Education Finance Corporation, one which guarantees loans
to students. The other investment is in the education sector by giving lower credit
facilities to investors in the education sector where they have to repay the loans
in 20 to 25 years," he added. He further said that the budgetary support for the
proposal would be provided by the central government, an issue that is currently
under the purview of the Planning Commission for its green signal. According to
the proposal, every student irrespective of their background can avail loans for
higher education having secured a seat in a professional college. These loans
would carry an interest rate of four per cent and the students need to repay the
loans only after they get employed. Talking about the Right to Education Act's
(RTE) clause of 25 percent seats for the poor, Sibal said that this was a national
education goal and will be enforced at any cost. "We will not waver from that
goal even an inch. We will give an opportunity to our underprivileged children,
legally, by giving 25 percent reservation to them in private schools. This is
the agenda of inclusive education. This is the agenda of the federal government
and we will not move away from it," he added. The RTE states at least 25 per cent
of the seats should consist of students belonging to 'weaker section and disadvantaged group in the neighbourhood'.
