Himachal govt to launch scheme to give education loan to poor students on 1% interest

NEW DELHI: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Monday said a scheme to provide education loans at one per cent interest to poor students to help them pursue higher and professional studies will be launched in the current financial year. The state government has proposed Rs 200 crore under the 'Mukhyamantri Vidyarthi Protsahan Yojna' which aims to provide the underprivileged children (families having income of less than Rs 3 lakh per annum) with education loans through financial institutions or banks at an interest rate of one per cent, he said in a statement.

The loan will help the students cover the charges of tuition, accommodation, books, and other allied expenses associated with their education, it said. The scheme covers a wide range of professional courses, including engineering, medical, management, PhD courses from ITIs, Polytechnic, B Pharmacy, nursing, General Nursing and Midwifery (GNM), among others. "The main objective of the scheme is to ensure that no poor child in the state is deprived of higher and professional education for want of financial resources," the statement stated.

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Sukhu said one per cent interest rate is to instill a sense of responsibility among the beneficiaries so that they have the motivation to achieve their aim. He also said that a subsidy of Rs 25,000 will be provided to 20,000 meritorious girl students, above 18 years of age, studying in government institutions, to purchase electric scooties. The move will not only encourage the girl students to pursue higher education, but also help to develop Himachal Pradesh as a "green state".