Bhubaneswar: The Odisha cabinet on Monday approved Kalinga Siksha Sathi Yojana to provide an educational loan at 1% interest for higher studies in India.
The government would provide interest subvention to all professional courses.
“In order to alleviate the financial stress of the parents facing hardship in paying a high rate of interest, the government of Odisha has decided to provide financial assistance in the form of interest subvention against educational loan availed from banks under Kalinga Siksha Sathi Yojana,” said Chief Secretary AP Padhi.
He said the interested students could apply for a loan to the nationalized banks in the state.
“We hope banks will come forward and provide the educational loan to the students for their better education,” said Padhi.
He, however, said the students and the parents seeking loan would have to follow the rules of the banks.
Criteria For Availing Loan Under Kalinga Siksha Sathi Yojana
- Income of parents must be up to Rs 6 lakh per annum
- Students can get loan up to Rs 10 lakh from any nationalized bank
- It will be applicable for inside India only
- The moratorium period shall be 4-5 years (till the course is completed)
- Students will have to apply the banks to get the benefits
- Banks to decide to whom the educational would be provided according to their rules