Students to get edu loan for higher studies @1% interest

Bhubaneswar: The State Cabinet today accorded in-principle approval to the implementation of Kalinga Siksha Sathi Yojana to provide education loan to aspiring students who want to pursue higher studies at a nominal 1 percent interest.

Briefing newsmen after the meeting which was presided over by chief minister Naveen Patnaik at the State Secretariat here, chief secretary Aditya Prasad Padhi said the state government has introduced Kalinga Siksha Sathi Yojana which is a modification of ‘Odisha State Interest Subvention Scheme’ it had introduced earlier. Under this new scheme, students of middle class and poor families willing to pursue higher studies within India can avail a maximum loan up to Rs 10 lakh from the banks at only 1 percent rate of interest.

“The state government has fixed the income ceiling of Rs 6 lakh per annum. In other words, students whose parental income is Rs 6 lakh per annum, can avail the loan with 1 percent interest,” he informed.

Padhi also said the students will not have to pay the interest during the moratorium period i.e., till they complete their higher studies. But after the moratorium period is over and they get the job, they will pay 1% interest.

The Cabinet approved a total of 14 proposals, which include amendments to Odisha Gram Panchayat Act, 1964, Odisha Prosecution Service Rules and Odisha Electricity (Duty) Act, 1961 and setting up of Odisha Mineral Exploration Corporation (OMEC).