Kerala government to pay back educational loans up to ₹2.4 lakh

Students can submit online application requesting repayment of loan by government Kerala Finance Department will repay up to 60% or a maximum of ₹2.4 lakh The facility is meant for families that earn less than ₹6 lakh per year

Kerala Finance Department has arranged for online application facility to help students repay their educational loans. Students can submit repayment applications online starting July first week. The loan amount will be transferred to the bank account of the student within a month, once the application is submitted. 

The plan is expected to cost ₹500 crore to state exchequer and is meant for families that earn less than ₹6 lakh per year. The state government will repay a maximum of 60% or ₹2.4 lakh, of the loan amount. The facility is available for loans that were taken before March 31, 2016. 

Defaulters, who took up to ₹9 lakh loan will be bailed out, and the banks will be asked to restructure the rest of the amount. Those who have repaid up to ₹4 lakh or up to 40% of their loan amount can rely on the government. 

Applicants should submit income proof certificate while applying online. However, the loans will be closed only after the student pays due amount. Students, who have not got any job yet, will get four more years to repay their loan.