A recent press report said that Kerala State Financial Enterprises would provide educational loans up to Rs.10 lakh to students belonging to families whose annual income was below Rs One lakh, state Finance Minister Mr. K M Mani said.
Reports said that the loans would be disbursed under the ‘Vidyadhanam’ scheme of the government at 12 percent interest rate. It added saying that four percent of the interest subsidy on the loan would be borne by the government and the student will have to pay only eight percent interests. It also said that educational loans will be offered to other categories at 13.5 percent interest.
Students eligible for the loan would be students of medicine, engineering, management, paramedical, veterinary, agriculture and dental courses. The repayment period for the loan is fixed as five years after the completion of the course. Loans up to Rs.5 lakh would be made available on individual surety.