Budget 2024: In a significant move to enhance educational opportunities, Finance Minister Nirmala Sitharaman announced new education loan initiatives during her budget speech. These measures aim to provide financial support to students who have not benefited from existing government schemes.

The government said it will offer education loans of up to ₹10 lakh to eligible individuals pursuing higher education in domestic institutions.

This initiative targets young people who have not previously benefited from any government schemes, providing them with the means to pursue further education and improve their career prospects.

The Model Skill Loan Scheme will be revised to allow loans of up to ₹7.5 lakh.

A government-promoted fund will provide a guarantee for these loans, FM said.

To further assist students, the government will issue e-vouchers directly to 1 lakh students, offering an interest subvention of 3%.

This measure aims to reduce the financial burden on students by lowering the interest rate on their education loans.

Who benefits?

By offering loans for higher education and skill development, the government seeks to empower young people to enhance their skills and improve their employment prospects.

The revised skill loan scheme and the provision of interest subvention are expected to help around 25,000 students each year.

By making education more accessible, the government aims to foster a more skilled and educated workforce, ultimately contributing to the country’s economic growth.

According to Kokil, Dean – Research & Outreach, at FIIB (Fortune Institute of International Business), the support for education loans up to ₹10 lakh is a game-changer.

“It will make higher education accessible to so many more students, helping them to pursue their dreams without the heavy burden of financial constraints. Overall, these initiatives are a huge leap towards a more inclusive and dynamic future for our country,” she said.

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