Camps for higher education loan at district headquarters from July 20 to 27

Bhopal: Camps will be held at district headquarters for providing higher education loans to students from July 20 to 27. State Government has taken this decision following a suggestion put up to this effect at a recent meeting of State-level Bankers Committee. A target has been set to provide higher education loan to 31 thousand 68 students this year.

Directives to this effect have been issued to district collectors, CEOs of Zila Panchayats and all other concered. Camps will be held on dates fixed by collectors. As far as possible, camps will be held on college premises only. Lead District Managers will coordinate the camp work on behalf of banks. District Coordinators of all commercial, private-commercial and regional rural banks will also ensure their participation in the camps.
Principals will ensure participation of maximum number of applicant students in the camps. With the cooperation of district administration and banks, Lead District Managers will undertake wide publicity regarding the camps. Special mention will be made of the documents to be brought by students at the camps. Banks will ensure that generally, loans are sanctioned in-principle at the camps. For students studying in colleges other than at district headquarters, District Coordinators of concerning banks will present loan sanction/disbursal applications to their branch managers. All applications at the camps will be received online through HELAMS.
It is noteworthy that upto Rs. 4 lakh loan under higher education loan scheme is provided without any guarantor/collateral security on the basis of making parents/guardians co-loanees. Loans upto Rs. 7.50 lakh are given on the basis of guarantor and above Rs.7.50 lakh on the basis of collateral security.
Under higher education loan guarantee scheme launched by Madhya Pradesh government, loan guarantee is given by the State Government to such talented students who are unable to provide collateral security due to lack of resources. Students whose family income is upto Rs. 5 lakh per annum and who have excellent academic record and have been selected in a prestigious educational institution are eligible under the scheme.
Madhya Pradesh government provides loan subsidy on higher education loan. During teaching period, upto 50 percent exemption on interest in higher education loan is given. Students having family income of over Rs. 4.50 lakh and below Rs. 7 lakh are eligible for the scheme.