Delhi Chief Minister Arvind Kejriwal and his deputy Manish Sisodia met a high-level delegation of 13 participating banks to review the progress of the flagship Higher Education and Skill Development Guarantee Scheme on Wednesday. “The participating banks have been instructed to cascade the details of the loan scheme to every single branch and employee for enhanced support and disbursal. In addition, prominent displays will be put at each branch premises in Delhi so that awareness about the facility can be enhanced,” Mr Kejriwal said in an official statement.
As part of the scheme, students can avail a collateral-free loan of up to Rs. 10 lakh for higher education with the Delhi government acting as the guarantor to furnish the loan amount in case the applicant defaults.
Students availing the credit facility get 15 years to pay back the loan.
A corpus of Rs. 30 crore, known as Higher Education and Skill Development Credit Guarantee Fund, has been created to provide appropriate guarantee.
In the financial year 2019-20, the Delhi government is aiming to cover Delhi students through this first-of-its-kind credit facility for deserving students.
“Eighty-five per cent of 5,00,000 students studying in Delhi colleges are residents of the national capital. He urged the banks to provide full coverage to this substantial student base in order as a means to provide them with assistance of all forms in pursuing higher education,” Mr Sisodia said.