Sign MoUs with professional colleges for education loans: AP Govt

Hyderabad, Sep 7 (UNI) Andhra Pradesh government today announced that banks would enter into MoUs with professional colleges for providing education loans right from the admission process.

The state Chief Minister Y S Rajasekhara Reddy today reviewed the issue of poor students who were unable to pursue higher education in professional colleges. He held a meeting with Principal Secretaries of Health and Family Welfare, Social Welfare, Tribal Welfare, Backward Classes, Minorities Welfare, Higher Education, Technical Education Director, Finance Secretary and State Level Bankers Committee.

Addressing newspersons after the meeting, Principal Secretary (Health and Family Welfare) IV Subba Rao, Finance Secretary Giridhar said that government had worked out a scheme for assisting students of all medical colleges, government engineering colleges, dental colleges, premier private engineering colleges, veterinary and agriculture colleges, University MBA and MCA colleges.

They said each college would enter into MoU with one or more banks. These banks would send letter of offer for education loan along with admission letter. Interested students could avail of education loan immediately. This mechanism would avoid students going around the banks and save a lot of time.

The banks having MoU would start handholding the students from the counselling day and offer to sanction even first instalment of fees on the same day, they explained.

Mr Giridhar said as MBBS education expenses (especially for category II) are in excess of Rs 7.5 lakh, the bankers had been requested to waive third part guarantee for loans upto Rs 10 lakh.

He said bankers meeting had been scheduled for September 11, 2006 to finalise the proposal. Loan upto Rs 10 lakh would be made available against signatures of student and parents, he added.

Mr Giridhar said it had also been decided to conduct 'Education Loan Fair' in all colleges before October 15, 2006.

He said in these fairs both new and existing students would be offered loans. Management quota students would not be allowed to avail this facility, he added.

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