Budget 2024: Rs10 Lakh Loans With 3% Interest For Higher Education (image@Pixabay)
The Union Government to provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions at an annual interest rate of 3%, said Finance Minister Nirmala Sitharaman. She made the announcement while presenting the Budget 2024-25 in the Parliament.
She said the government have made an allocation of Rs. 1.48 lakh crore for education, employment, and skilling. Employment-linked skilling through schemes were also announced as part of the PM’s package. She said, “We have made a provision of Rs 1.48 lakh crore for education, employment, and skilling. The people have given us an opportunity to contribute to the country’s development and prosperity”.
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The government will also provide e-vouchers directly to over 1 lakh students every year with interest subvention of 3 per cent of loan amount. She said the government will upgrade up to 1,000 ITIs in hub and spoke model.
During the Budget, Sitharaman proposed a revision of the Model Skill Loan Scheme to facilitate loans up to Rs 7.5 lakh to help as many as 25,000 students every year.
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The Finance Minister also added that the new centrally-sponsored schemes for skill development in collaboration with states and industry, aiming to skill 20 lakh youth over 5 years will be provided.
In the 2023 Union Budget, the education sector received the largest-ever allocation of Rs 1,12,898.97 crore, with the higher education department getting Rs 44,094.62 crore and the department of school education receiving Rs 68,804.85 crore.
