The state government has decided to bear the interest of educational loans availed of by the BPL category students during the time of study from 2004-2009, Chief Minister Oommen Chandy has said.
Briefing the media on the cabinet decisions here on Wednesday, he said the Central Government was now providing waiver to students who have taken loans after 2009.
“Instructions have been given to the lead banks not to levy penal interest. Simple interest and base interest of the loans during the study period would be given by the state government,” he said.
A committee consisting of representatives of lead banks and secretaries of Higher Education, Finance, LSG, and Cooperation would be formed to expedite the process, he said. No recovery activity should be initiated by the banks till a consensus has been reached.
While considering the BPL category, the state government’s BPL list should be considered and not that of the Centre. Instead of paying directly to the beneficiaries, the government would remit the required amount in the banks as and when final shape is given to the whole process.
The present stand taken by the banks in not providing educational loans for students who opt to go out of the state for studies is not acceptable.
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