Lok Sabha Question No. 694 (UNSTARRED), answered on 2018-07-23
Subject: Credit Guarantee Fund for Education Loan
Ministry: HUMAN RESOURCE DEVELOPMENT
Asked by: SHOBHA KARANDLAJE

## GOVERNMENT OF INDIA MINISTRY OF HUMAN RESOURCE DEVELOPMENT DEPARTMENT OF HIGHER EDUCATION

## LOK SABHA

UNSTARRED QUESTION NO.694 TO BE ANSWERED ON 23.07.2018

## Credit Guarantee Fund for Education Loan

## 694. KUMARI SHOBHA KARANDLAJE:

Will the Minister of HUMAN RESOURCE DEVELOPMENT be pleased to state:

- (a) whether the Government has approved the continuation of credit guarantee fund for educational loans scheme with a financial outlay of Rs. 6600 crore for period from 2017-18 to 2019-20;
- (b) if so, the details thereof;
- (c) whether under the revised scheme, the number of loans per year are expected to be at least 3.3 lakhs, showing a 20 per cent increase over the previous scheme, if so, the details thereof; and
- (d) the details of other major initiatives of the Government to make quality education affordable to all?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF HUMAN RESOURCE DEVELOPMENT

## (DR. SATYA PAL SINGH)

- (a): The Government has approved the continuation of Credit Guarantee Fund for Education Loans Scheme along with the continuation and modification of Central Sector Interest Subsidy Scheme which are functioning under one head as 'Interest Subsidy and Contribution for Guarantee Fund' with a financial outlay of Rs. 6,600 crore for the period from 2017-18 to 2019-20.
- (b) Under the Central Sector Interest Subsidy (CSIS) Scheme, full interest subsidy is provided during the  moratorium  period  (course  period+1  year)  on  the  education  loan  up  to  Rs.  7.5  lakh,  taken  from Scheduled Banks under the Model Education Loan Schemefor pursuing professional/ technical courses only  from  NAAC  accredited  Institutions  or  professional/  technical  programmes  accredited  by  NBA  or Institutions of National Importance or Central Funded  Technical  Institutions (CFTIs) and  those professional courses, which do not come under the ambit of NAAC or NBA, would require approval of the respective  regulatory  body.  The  benefits  of  the  Scheme  are  applicable  to  students  belonging  to economically weaker sections of the society having parental income up to Rs. 4.5 lakh per year.

Under the Credit Guarantee Fund for Educational Loans (CGFEL) Scheme, guarantee is provided on the education loan for a maximum amount of Rs. 7.5 lakh, disbursed without any collateral security and third party guarantee.

- (c): Yes, Madam. From 2014-15 to 2016-17, on an average 2.82 lakh studentsper year have been benefitted under the CSIS scheme.As awareness about the scheme amongst the student community has increased  over  the  years,  it  is  envisaged  that  there  would  be  20  per  cent  increase  in  the  number  of beneficiaries.
- d) The  Central  Government  being  sensitive  to  the  needs  for  ensuring  equity  in  access  to  higher education, has undertaken comprehensive demand side financing through fee waiver, reimbursement of tuition fees,  scholarships/fellowships, interest subsidy, education loan and credit guarantee on education loan for making quality education affordable to all thereby ensuring that the cost of education does not impede  the  educational  prospects  of  students  in  general,  especially  of  students  belonging  to  the economically weaker sections of the society.

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