Interest subsidy for educational loans taken before March 2009

NEW DELHI: Finance Minister P Chidambaram in his interim budget speech Monday announced a moratorium period for education loans taken up to March 31, 2009 which were outstanding as on December 31, 2013. Under this scheme, government will take over the liability for outstanding interest as on December 31, 2013, but the borrower would have to pay interest for the period after January 1, 2014.
According to the FM, this scheme will benefit nearly 9,00,000 student borrowers to the tune of approximately Rs 2,600 crore. “I intend to provide the funds in the current financial year itself. Accordingly, a sum of Rs 2,600 crore will be transferred to Canara Bank, the designated Central Scheme for Interest Subsidy (CSIS) banker. Details of the scheme will be announced shortly,” the FM said in his speech.                     —Agencies