Bihar urges Centre to reduce interest on educational loan

Patna (PTI): The Bihar government has urged the Centre to take initiatives to reduce the interest charged by banks on educational loans from 10-12 per cent to 4 per cent so that more and more students take advantage of the facility for higher education.

Bihar Deputy Chief Minister Sushil Kumar Modi said here on Sunday that the Centre was being approached for this.

Banks should ensure that a large number of desirous students from Bihar, who cracked the IIT test, must receive educational loans, Mr. Modi said.

Mr. Modi asked the banks to pay special attention to areas in Darbhanga, Gaya, Motihari and other districts where the state government had launched technical institutions.

During the years 2006-07 and 2008-09, banks had disbursed educational loans worth Rs 933.77 crore among 39,900 meritorious students.

Mr. Modi directed all the banks to declare a nodal bank in each district where all educational loan applications would be received and processed.

Source : The Hindu