NEWS & ADVICE : EDUCATION LOANS
Student loan subsidy given in Karnataka
By Neelima Shankar
Nov 26, 2008
Print    Email    RSS   

The state government of Karnataka has declared a 6%loan subsidy for students of professional colleges and has issued certain guidelines to the nodal agency of education and director of technical education regarding the issue.

Students can avail loans from any nationalized bank provided he is admitted to any professional course through the Common Entrance Test (CET) conducted by Karnataka Examination Authority (KEA). Banks can sanction a education loan to any student who has cleared CET and can identify one particular branch for the repayment of the loan amount. However banks which receive such applications from the students should send forward the applications with proper recommendations.

The loan amount that will be sanctioned by banks will depend upon the entire fees for the course that should be stated in a certificate given by respective college principals. The maximum amount that can be availed by a student is Rs 5 lakh including the tuition fee. The students have to pay a maximum interest rate of 6% on this loan.

The guidelines state that in proposals regarding the repayment of subsidy, banks have to assure that students have cleared the earlier semester and are eligible to continue the course. Only such proposals will be entertained for the subsidy repayment.

The banks need to compile all such proposal and send it to the nodal agency through their representative branch. Banks will get the subsidy amount for all the proposals through a single cheque. In case if a student fails to clear any semester and is not eligible to appear for the next semester, then the banks will not get subsidy for the entire course. Therefore banks need to ensure this before approving the application.

Subsidy will only be provided for the course tenure.

 


(Comments Posted : 27) Post Your Comments
1. sir i am in need of loan but when i asked bank manager he said that the interest of the loan is 13% and also the interest starts from now only. please help me
Pavan HK (Posted: Aug 19, 2016)
2. sir, i got 68% in my 2ndpuc. am i able to get educationloan through kea..?
saikiran (Posted: Jul 1, 2016)
3. sir, i got 68% in my 2ndpuc. am i able to get educationloan through kea..?
saikiran (Posted: Jul 1, 2016)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Manage your loans, avoid recovery agents
Complete Guide to NRI Education loan
A chronicle of excesses by loan recovery...
Complete guide to education loans in India
An insight into education loan schemes for...


Where is Dissertation Help India whose email is...
ROPAR: CaℒL Giℛℒ In Kurali 09855660911...
Why Pitampura Tutors (Ph:- 9911742311) & Private...

NEWS THIS WEEK
Banks to look forward to hire students from IIT/IIM Feb 18, 2015
Union Bank of India hiring for the post of specialist officers Feb 16, 2015
Canara bank launched scholarship Scheme Feb 13, 2015
AXIS bank started ‘My idea of progress’ Campaign Feb 12, 2015
RBI inviting applications for the guard post Feb 11, 2015
News Archive