Get education loans without collateral

The government is committed to ensure a smooth flow of education loans for students and a total of 1,40,000 such loans were given till last December, Finance Minister P Chidambaram said on Tuesday.

The Finance Minister said a model educational loan scheme of Indian Banks Association had been adopted by banks.

Chidambaram said there was no proposal to increase the interest rate on bank loans.

The educational loan is given for professional courses on the basis of signatures of the student and one of the parents, he said adding no collateral was required for loans up to Rs 4 lakhs.

He said 1,07,000 educational loans were given during 2003-04.