Source-Indian Express

"The ministry has planned a subvention scheme which will ensure that the interest part on loans is taken care of by it. The details of the scheme are being finalised by the ministry."

By: PTI | New Delhi | Updated: July 15, 2016 1:20 pm

The HRD Ministry is working on a subvention scheme to help IIT students get interest-free loans so that they can pay their fees easily.

Officials in the Prakash Javadekar-led ministry said while the fee for these institutes was hiked recently, the government also wants that students and their parents do not face any hardship.

“The ministry has planned a subvention scheme which will ensure that the interest part on loans is taken care of by it. The details of the scheme are being finalised by the ministry,” an official said.

Under the earlier HRD minister Smriti Irani, the fee was increased from Rs 90,000 to Rs 2 lakh per annum.

However SC, ST, the differently abled and economically backward sections were provided waivers.

Officials said that the scheme will help those, who don’t come under the categories but still may need assistance to cope with increased fee.

When the IIT fee was hiked, it was mentioned that students would be able to get interest-free loans under the ‘Vidyalakshmi’ scheme.

However, according officials, there has been some feedback regarding difficulties prospective students are facing in securing interest free loans and the ministry is trying to ensure that these are addressed.

The fee hike comes into effect from this academic year, when the new batch joins.