Union Home Minister P Chidambaram on Saturday said there is no prescribed rule stating that students in different areas should approach specific banks to avail education loans. Inaugurating a bank educational loan mela here,he said he had received information that bank branches have been divided and allotted service areas to provide loans for students in different areas. But the Indian Bankers Association has verified that there was no rule which said students should approach a particular bank for loans. The minister advised students to approach the nearest bank branch for loans. If there was the system of service area branch,it should be cancelled,he said. Chidambaram said a recent cabinet meeting had decided that students taking loans from this year need not pay interest or the loan amount (without arrears) till they pass out of their course and for six months after they complete it. The interest for the period would be borne by the government. "If the annual income of the parent is less than Rs 35,000,then there is no need to pay interest on education loans," he said.
