Tamil Nadu: Collateral-free education loan limit raised to Rs 20 lakh

CHENNAI: The Tamil Nadu government has increased the limit for collateral-free education loans to Rs 20 lakh, Higher Education Minister P Viswanathan said on Wednesday, describing the move as a major boost for students pursuing higher education in the State.

Speaking to reporters at Chennai airport, Viswanathan said the initiative would enable students to obtain education loans of up to Rs 20 lakh without providing collateral.

Earlier, students could avail themselves of loans up to Rs 4 lakh based on their own guarantee, while loans up to Rs 7.5 lakh could be obtained with a parent's guarantee.

"This is a revolutionary scheme that will ensure students can pursue higher education without facing financial hurdles," he said.

The minister said the Tamil Nadu government and scheduled banks had agreed to ensure that education loans were readily available to students.

Officials from the Higher Education Department and banks would work together to ensure students could obtain loans without difficulty, he added.

Viswanathan also said Rs 1,000 crore had been allocated in the name of former chief minister K Kamaraj to improve infrastructure in government colleges.

The funds would be used for buildings, classrooms, laboratories, canteens, libraries and compound walls, among other facilities.

On his role in the Assembly, Viswanathan said he was a former MP but was new to the Legislative Assembly and was still learning its procedures.

"After 100 days, the Assembly will become more vibrant. As the days pass, you will see how this Assembly unfolds," he said.