IBA grants loan scheme for vocational education

In an effort to strengthen the Indian labour force and further the economy, the Indian Banks' Association (IBA) has finally approved a vocational education loan scheme. Under this scheme, every IBA allied bank and also those whom RBI may include will advance education loans to students in the vocational education and training sector.

Students at government-run institutions or recognized private educational institutes are eligible for this loan. Age is no bar for applying for the loan. Moreover, students will also not be asked for any collateral security. (Read more)

Availing a loan involves certain factors. Listed here are some:

The repayment of loan for courses upto one year can be done in a time-span of 2-5 years after the moratorium period, while for courses of more than a year's duration, the repayment can be made in 3-7 years. As far as the interest rate is concerned, it will be charged on the base rate of banks fixed by the individual banks or at reduced rates, if an interest subsidy is granted by the central or state government. The scheme says "Simple interest will be charged during the study period and up to the commencement of repayment". The loans would likely be available from July onwards.

Not only will this unique initiative increase the financial accessibility, but will also bring in numerous revolutionary benefits with it.

• The scheme will not only help students but also skill providers, worried about low enrolment due to financial hurdles.
• It will facilitate growth led employment generation
• It will lead to improvement in the employment and retention factors
• It will help to increase the number of students completing courses
• The presence of a specific scheme will facilitate easy allotment and acquisition of loan

Through this hassle-free and quick scheme, the vocational sector is sure to get a boost. Read complete story here...

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