CM Vijay vows collateral-free education loans up to Rs 20 lakh, says minister Viswanathan

MADURAI: Stating that no eligible student should be denied an education loan, Higher Education Minister P Viswanathan said the government had set a target to provide education loans to 25,000 students in the current financial year.

Delivering the inaugural address at a district-level Education Loan Mela jointly organised by the district administration at Lady Doak College here on Monday, the minister said Chief Minister Joseph Vijay was taking special care to ensure that all eligible students get education loans.

“The CM has decided to do away with the requirement of collateral security for loans of up to Rs 20 lakh. Instead, he suggested that a parent’s surety would be sufficient to provide the loan so that students could pursue their dreams without facing hurdles,” the minister said.

The minister was responding to Madurai CPM MP Su Venkatesan’s remarks that implementing the Rs 20-lakh loan scheme without collateral this year would be a milestone, though it would require considerable effort.

Viswanathan assured that the CM would definitely implement the scheme soon.

He further urged bankers not to cause difficulties for students and their families when they approached them for education loans. Instead, he requested them to allocate a specific time slot to personally address their needs and treat them with due respect.

Expressing regret that the central government provides educational loans only to students studying in 133 colleges in Tamil Nadu, the minister said this should change to enable students in all colleges, in both professional and non-professional courses, to avail themselves of loans.

Earlier, speaking on the occasion, Madurai CPM MP Su Venkatesan urged the Madurai District Collector to close the government accounts in private banks that were not providing education loans to students from disadvantaged sections.

A member of the Higher Education Standing Committee, Venkatesan, said it was disappointing that only public sector banks were helping students with education loans. The district administration should take strong action against private banks that are not extending education loans, he said.

In 2020, Maharashtra garnered 35% of the funds sanctioned by the central Government for education loans, while Tamil Nadu received only a single-digit share, he claimed. “Because of our consistent efforts, fund allocation has increased over the years, with Madurai receiving Rs 249 crore last year,” he said. The MP said the target for this year had been fixed at Rs 400 crore.

Later, Higher Education Minister Viswanathan distributed education loan sanction letters to 275 students, totalling Rs 30.37 crore. According to an official release, public sector banks sanctioned loans totalling Rs 28.20 crore, while private banks sanctioned loans totalling Rs 2.17 crore.

Tamil Nadu Eyes 25,000 target

State targets education loans for 25,000 students in the current financial year

Plans to relax norms to ensure education loans up to Rs 20 lakh without collateral

Parent’s surety will replace collateral security for eligible loans

Education loans currently available to students in 133 colleges in Tamil Nadu under the central scheme

Higher Education Minister called for extending coverage to all colleges and courses, including professional and non-professional courses