Kerala State Financial Enterprises would provide educational loans upto Rs 10 lakh to students belonging to families whose annual income was below Rs One lakh,state Finance Minister K M Mani said today. The loans would be disbursed under the 'Vidyadhanam' scheme of the government at 12 percent interest rate from the second week of this month,he said in a press release here. Four percent of the interest subsidy on the loan would be borne by the government. In effect,the student would have to pay only eight per cent interest,it said. Educational loans would be made available to other categories at 13.5 percent interest. Students of medicine,engineering,management,paramedical,veterinary,agriculture and dental courses would be eligible to apply for the loans. The loans would have to repaid within five years after the completion of the course. Loans upto Rs five lakh would be made available on individual surety,the release said.
