The government is going to help needy students by spending Rs 6,600 crore in next three years in the form of loan interest subsidy, revealed by Union Human Resource Development Minister Prakash Javadekar.
The 2009 scheme was extended at a recent meeting of Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi for the next three years.
“It’s a great equity initiative of the Narendra Modi government that in next three years, more than 10 lakh students…who don’t have means, whose income is below Rs 4.5 lakh per year will be eligible for the education loan and interest subsidy,” Javadekar said.
The scheme will facilitate eligible students to get loans without any collateral or guarantee whereas the interest will be paid by the government for the duration of the course plus one year after its completion.
The students can take loans up to a maximum of Rs 7.5 lakh under the scheme. The Minister said that the central government has spent a total of Rs 5,400 crore in the last three years on this scheme, which it would increase to Rs. 6,600 crore for the next three years.
“Sarva Shiksha Abhiyaan was started by Atal Bihari Vajpayee in 1998. For the last 20 years, the scheme is operating with little changes made here and there. But now after consulting the states, we have come to decide that from Class 1 to Class 12 there will be one scheme,” Javadekar said.
The minister also said that in coming five years the government will replace blackboards with smart board for classes 9, 10, 11 and 12 in all its schools.