Daijiworld Media Network - Udupi (SP)

Udupi, Sep 4: Because of the continuing impact of coronavirus pandemic, schools and colleges in the state have not yet started running classes. Even though the schools have not opened, there is no bar on the students availing education loans. They can continue to avail education loan by submitting the required documents to the government.

There was confusion about whether education loan can be availed for pursuing higher education because of the presence of coronavirus infection. The fact that the educational institutions have not been functioning had added to the confusion. There were rumours that this year, education loans would not be granted. Lead bank manager T C Rudresh asked the students not to get perturbed unduly and assured that education loans will be granted this year too like in previous years.

He said that the students can avail education loans by providing information about online education registration by educational institutions, estimated expenses for the education of the student for the current year, and college admission records etc and get the loan sanctioned.

He said that every year, immediately after the common entrance test result was published, students willing to pursue medical and engineering courses used to apply for education loans. But he noted that loan applications this time have been far less, as some colleges have not begun the registration process.

Rudresh stated that for the year 2020-21, Udupi district has a target of Rs 160 crore education loans disbursement and that so far 30 to 40 applications for education loans have been received. He said that the banks give loans on priority for education at an interest rate of 9 to 11 per cent per annum. He said that for education in institutions within the country, loans up to Rs 10 lac can be availed and for studies abroad, loan of Rs 20 lac or more can be availed. The loan amount depends on courses and repaying capacity, he stated.