Sivaganga, August 29: Union Home Minister P Chidambaram today said there is no prescribed rule stating that students in different areas should approach specified banks to avail of educational loans.
Inaugurating a bank educational loan mela here, he said he had received information that bank branches have been divided and allotted service areas to provide loans for students in different areas. But Indian Bankers Association had verified there was no rule which said students should approach a particular bank for loans.
The minister advised students to approach the nearest bank branch for loans. If there was the system of service area branch, it should be cancelled, he said.
Chidambaram said a recent cabinet meeting had decided that students taking loans from this year need not pay interest or the loan amount (without arrears) till they passed and for six months after they completed the course. The Interest for the period would be borne by the Government.
“If the annual income of the Parent is less than Rs 35,000, then there is no need to pay interest on education loans,” he said.
—Agencies