This historic and pioneering step of my govt will reduce the loan burden of thousands of parents and financially empower poor students to pursue their aspiration in higher education
Naveen Patnaik |Chief Minister
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Bhubaneswar, June 27: In a bid to ensure that meritorious students do not stop enrolling for higher education due to lack of funds, Chief Minister Naveen Patnaik Monday launched a new scheme titled ‘Kalinga Sikshya Sathi Yojana’.
Under the provisions of the scheme, the state government would provide education loans at only 1 per cent interest per annum to students undergoing higher education, including management, law, engineering, medicine and others.
The state government has earmarked `500 crore from its own resources for the purpose.
“I fully understand the financial stress the parents, especially of the poor and middle class, undergo in meeting the education cost of their children. This historic and pioneering step of my government will reduce the loan burden of thousands of parents and financially empower poor students to pursue their aspiration in higher education,” Patnaik said.
He said the state government dedicated this scheme to former Chief Minister Biju Patnaik on his birth centenary.
The scheme was one of the poll promises made by the BJD ahead of the 2014 Assembly elections.
“The state government will meet the fund requirement of about `500crore from its own resources towards this,” he added.
Sources in the government said any student whose parents’ annual income is below `4.5lakh will be eligible to avail a loan at subsidized interest under the scheme.
“The maximum loan amount under this scheme will be `10lakh,” said a senior officer from the higher education department.
Sources said students will be given a moratorium period of 4-5 years before repayment. The security deposits will need to be made as per bank rules, while bankers will decide as to who can avail loans.
With panchayat elections slated to be held February 2017, the announcement of the scheme is being seen as a move to woo the poorer sections of the electorate.
Sources in the higher education department said a higher education policy will be finalised and the state government will also take steps to provide financial assistance and free education facilities for orphaned students from Plus II onwards.
