The Delhi government on Thursday unveiled its plan to provide bank loans for students wishing to pursue higher education in the city.

The scheme, a election promise by Aam Aadmi Party, will be launched shortly.

Deputy Chief Minister Manish Sisodia unveiled the salient features of the scheme during an interaction with students at Delhi Secretariat on Thursday. Once the scheme is launched, students who wish to pursue any diploma or degree course after finishing Class 12 from any school in Delhi will be eligible for bank loans with the government standing as a guarantor.

The applicant will not be required to furnish any collateral and the scheme will be universal in nature regardless of the student’s financial background, an official said.

“The loan will cover both tuition fees and living expenses. The loan repayment schedule will carry a moratorium period covering the years required to finish the course and one year thereafter to find a job. Under the scheme no applicant will be rejected,” according to a statement released by the government.