The Central Human Resource Development Ministry is now underwriting a scheme in order to assist IIT Students to overcome their financial burden by providing them a Interest Free Loans. This will help those students to pay their fees easily.
Why this Idea?
As per this new scheme, all students of the elite Indian Institutes of Technology (IITs) whose annual family income is less thanRs.9 lakhs, will be eligible for interest-free education loans for a tenure of five years. This decision, the intially taken by the new HRD minister Prakash Javadekar, is to outgrowth a tuition fee hike in April, 2016 for undergraduate IIT students.
It is also noted that this will be applicable to all students whose family income is not more than Rs.9 lakhs and this facility will be applicable only for loans taken to pay tuition fees.
Fee Hike History:-
In april 2016, The annual tuition fee for undergraduate students was increased from Rs.90,000 per year to Rs.2,00,000 per year with immediate effect.
Apart from these conditions, Students who pay some amount for admission will get recouped from the loan amount. The interest on these loans will be paid by IITs from their internal acquisitions. Banks will have to issue an education loan for tenure of 10 years and without any collateral, except the individual guarantee of a student.
♦ Name – Indian Institute of Technology
♦ Establishment – 1951
♦ Locations – 19