Budget 2024: Government Offers Loans Up to ₹10 Lakh for Domestic Higher Education
In a move to bolster educational opportunities, Finance Minister Nirmala Sitharaman announced new initiatives for education loans during her budget speech. These measures are designed to support students who have not yet taken advantage of existing government schemes.
The government plans to offer education loans of up to ₹10 lakh to eligible individuals pursuing higher education in domestic institutions. This initiative targets young people who have not previously received benefits from any government programs, providing them with the financial means to further their education and enhance their career prospects.
The Model Skill Loan Scheme will be updated to provide loans of up to ₹7.5 lakh. Additionally, a government-backed fund will offer a guarantee for these loans. To further ease the financial burden, the government will distribute e-vouchers to 1 lakh students, providing a 3% interest subvention to lower the cost of education loans.
This initiative is intended to help students by reducing the interest rates on their loans. The revised skill loan scheme and the interest subvention are expected to benefit approximately 25,000 students annually.
By making education more accessible, the government aims to create a more skilled and educated workforce, thereby contributing to the country’s economic growth.
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