Students going in for higher education can now take a loan at 2 per cent interest from Delhi government.



The draft of the scheme talks about giving a bank mortgage free loan of up to Rs 10 lakh to students after Class 12.



Announcing the launch of “Higher Education Credit Guarantee Scheme” at the Delhi secretariat, Deputy Chief Minister Manish Sisodia said his government is committed to giving the “right to education” to every student who wants to pursue higher education.

“The government stands with those who want to pursue higher studies,” Sisodia said, who is also Delhi’s education minister. Facilitating bank loans for students was one of the key poll promises of the Aam Aadmi Party.



“Students will not be required to furnish any collateral and the scheme will be universal in nature regardless of students’ financial background,” a government statement said.



At the government-organised event, several students suggested that the scheme should be transparent and that there should be no hidden costs.



According to the Delhi government, 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.



Parents or guardians would be joint borrowers, and repayment of loan will be in Equated Monthly Instalments (EMIs) of 15 years.

Under the Aam Aadmi Party government’s new scheme no loan will be rejected, Sisodia said. The scheme will cover both public and accredited private institution.