KR Periyakaruppan, Minister of Cooperation in the Tamil Nadu Government, unveiled on Tuesday, June 11, a significant development regarding education loans provided by cooperative banks.
Effective immediately, cooperative banks will offer education loans up to Rs 5 lakh, a substantial increase from the previous limit of Rs 1 lakh for members of cooperative societies.
The announcement emphasized the comprehensive coverage of these loans, encompassing expenses such as hostel fees, book fees, food expenses, tuition fees, and related costs. Interested students can access these loans through central district cooperative banks and affiliated institutions.
This initiative supports students pursuing various academic paths, including Arts and Science, Engineering, Medical, and other professional courses, throughout their first to third years of study.
Repayment terms for these education loans have also been outlined. Students will commence repayment six months after completing their studies and will have up to five years to settle the dues, with an interest rate set at 10% as mentioned in a report by Edex Live.
Additionally, Minister Periyakaruppan highlighted that students belonging to minority communities have the option to seek loans from the Tamil Nadu Minorities Economic Development Corporation. These loans will be facilitated through cooperative banks.