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Interest-free loan schemes for undergraduate studies in Budget in 2014
View(s):University students will benefit from this year’s Budget which will introduce a loan scheme for undergraduates for their studies, to be paid once employed, said a Higher Education Ministry senior official.
Higher Education Ministry Secretary, Dr Sunil Nawaratne told Education Times that the final proposal for the scheme has been sent by Higher Education Minister S.B. Dissanayake and awaiting approval to implement the scheme.
Under this scheme, interest free loans will be provided, and the repayment period could be adjusted according to the requirement of the loan recipient. However, a 3% service charge on the loan will be imposed.
He said approval will be given only for students who actually require such loans.
He said that the initial plan is to provide the facility for 3,000 students, and later extend the scheme to more students.
He said that, according to the proposal, undergraduates will be able to obtain loans under three different schemes – Rs 5,000, Rs 7,500 or Rs 10,000,
with three guarantors who are university students.
‘Currently, under the Mahapola Loan scheme, only Rs 2,500 is provided. Hence, this loan scheme would be more useful to continue with their studies’, he said.
- Damith Wickremasekara