NMDFC STARTS JOB-ORIENTED EDUCATION LOAN SCHEME FOR MINORITIES

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Lok Sabha

An Educational Loan Scheme to facilitate job-oriented education amongst the weaker sections of the notified minorities has been started by the National Minorities Development and Finance Corporation (NMDFC) from the current financial year. The scheme is implemented through the State Channelising Agencies (SCAs) of the NMFDC, nominated by the respective State Governments. Stating this in a written reply in the Lok Sabha today, the Social Justice and Empowerment Minster Dr. Satyanarayan Jatiya said the scheme envisages a maximum loan of Rs. 75,000/- for pursuing professional and technical courses of duration not exceeding 2 years. He said funds for this purpose are made available to the SCAs at interest rate of 1% which in turn charge 3% interest for lending to the beneficiaries. The loan is repayable in maximum period of five years after completion of the course. The beneficiary for becoming eligible should be in age group of 16-32 years and the annual family income should be below double the poverty line. The Minister said that the the SCAs have been advised to use 10% of the Annual Allocations provided to them by the NMDFC for the purpose of Educational loans. Accordingly, allocations to the extent of Rs. 10.90 crore are available to the State Channelising Agencies (SCAs) for the year 2003-04. Dr. Jatiya said that as on 30.11.2003, loans amounting to Rs. 22.50 lakh have been disbursed to 161 students under the scheme.