Implementing one of its key-objectives, Arvind Kejriwal government in Delhi today launched a web-portal for students which will enable them to avail collateral-free loan for their higher studies. According to Arvind Kejriwal, the students or their parents will not need to provide any collaterals to the banks as the government will act as the guarantor. The loan can be availed to study in any college or university across the country.
Who can avail this loan
Anyone, who belongs to Delhi and has studied 10th and 12th class in the state. This loan can be availed to study anywhere in the country. The loan can be availed by anyone starting the next academic session, which starts from mid of next year.
How to apply for the loan
The applicants can access the online web portal to apply for the loan and provide basic details. Once the application is submitted, officials will verify the details and will coordinate between the banks and the students. The whole process is so seamless and should be completed in less than a weeks time.
How to repay the loan
The student will not have to pay anything during the study period. Once the studies are over, he/she will be given one year of time to search for a job and get settled. Once done, the EMIs will start and with a low-interest rate, the full loan is to be paid in EMIs for 15 years. The government has tried to make it simple and convenient for the poor students.
What is the interest rate of the loan
Though the same was not announced, it seems that the interest rate will be lower than what the banks charge currently for students/study loans. That hints towards government keeping an interest rate of 6-8% on the loan. However, the details will be available once the whole process gets more transparent.
According to Arvind Kejriwal, the government has worked hard to make this a reality and it wants to provide equal chances to everyone in Delhi. This seems to be a great initiative and if this is implemented well, this could change the future of thousands of poor students, who can not afford quality education due to lack of money. Governments of other states too can implement it based on the response it has from Delhi.