Budget 2024: Good News For Students As FM Sitharaman Announces Interest Subvention On Education Loan

In good news for students, Finance Minister Nirmala Sitharaman today announced measures related to education loans. Presenting her 7th budget, FM Sitharaman said that the Narendra Modi government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions. She said that the government would provide e-vouchers directly to the students.

"For helping our youth who have not been eligible for any benefit under government schemes and policies, I am happy to announce a financial support for loans up to Rs 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3 per cent of the loan amount," said Sitharaman. 

Among other measures, the Finance Minister also proposed that 1,000 ITIs will be upgraded in the hub and spoke model. "I am happy to announce a new centrally sponsored scheme, as the 4th scheme under the Prime Minister’s package, for skilling in collaboration with state governments and Industry. 20 lakh youth will be skilled over a 5-year period. 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation.  Course content and design will be aligned to the skill needs of industry, and new courses will be introduced for emerging needs," she said.

I am happy to announce a new Centrally Sponsored Scheme, as the fourth scheme under the Prime Minister's package for skilling and collaboration with state governments and Industry

20 lakh youth will be skilled over a 5 year period

1000 ITIs will be upgraded in Hub and… pic.twitter.com/rlz3lkJWeB — PIB India (@PIB_India) July 23, 2024

She further said that the model skilling loan scheme will be revised to facilitate loans up to Rs 7.5 lakh per person. 

Skilling Programme and Upgradation of Industrial Training Institutes

* 1,000 Industrial Training Institutes (ITIs) to be upgraded in hub and spoke arrangements in five years
* New Centrally Sponsored Scheme in collaboration with states and industry
* Focus on outcome and quality of skilling
* Course content and design aligned to needs of industry
* Total outlay of Rs 60,000 crore over five years
* Government of India-Rs 30,000 crore
* State Governments- Rs 20,000 crore
* Industry- Rs 10,000 crore (including CSR funding)
* 200 hubs and 800 spoke ITIs -all with industry collaboration
* Re-design and review of existing courses

New courses
* 1 to 2 year courses in all 1000 ITIs
* Short term specialised courses in Hub ITIs
* Capacity augmentation of 5 national institutes for training of trainers
* 20 lakh students expected to benefit