HRD ministry brings scheme for interest-free loans to IIT students

New Delhi: The HRD ministry has come out with a subvention scheme to ensure that students of IITs, whose fees were hiked recently, can secure interest-free loans.

According to an order issued by the Prakash Javadekar-led ministry, the facility will be made available to all the students whose household income does not exceed Rs 9 lakh per annum.

Officials said that the scheme shall only cover the tution fee and the subvention of interest will be applicable maximum for a period of five years.

They said while the fee for these institutes was hiked recently, the government also wants that students and their parents do not face any hardship.

"The ministry has planned the subvention scheme which will ensure that the interest part on loans is taken care of by it," an official said.

Under Javadekar's predecessor in the HRD ministry Smriti Irani, the fee was

increased from Rs 90,000 to Rs 2 lakh per annum. However SC, ST, the differently abled and economically backward sections were provided waivers.

Officials said that the scheme will help those who do not come under the categories but still may need assistance to pay increased fee.

When the IIT fee was hiked, it was mentioned that students would be able to get interest-free loans under the 'Vidyalakshmi' scheme.

However, according officials, there has been some feedback regarding difficulties prospective students are facing in securing interest free loans and the ministry is trying to ensure that these are addressed.

The fee hike comes into effect from this academic year, when the new batch joins.