Medical college fee: Kerala govt. to stand guarantee
To help students unable to mobilise additional ₹6 lakh
The Kerala government will stand guarantee for students who are unable to mobilise funds for the bank guarantee required during admissions to private self-financing medical colleges.
This was decided at a meeting between Chief Secretary-designate K.M. Abraham and representatives of the State Level Bankers’ Committee here on Wednesday.
If, for any reason, the student or the principal guarantor was unable to pay ₹6 lakh, the government guarantee would be invoked and the payment made.
“What we have done is to completely insulate the student and the bank from any risk. I understand that this guarantee would be required for about 2,900 students who are seeking admission to private self-financing medical colleges. A government order on this would be issued immediately,” Mr. Abraham told The Hindu.
The term of the bank guarantee would be for six months and issued from September 5.
The student should submit an application to the bank branch along with the document testified by either the college principal or the CEE that he or she has received admission in a particular college.
The guarantee would be given to the Principal of the self-financing college.
Paying the difference
If the Fee Regulatory Committee fixed a fee higher than ₹5 lakh, the student should pay the difference or apply for a bank loan for the same.
Under the existing rules, banks required a “cash margin” of 15% to 100%. However, since the government was standing guarantee there would be no need for such a margin.
Moreover, the banks would not levy guarantee commission from students in the BPL category, the Scheduled Castes/Scheduled Tribes, and children from the families of traditional labourers such as fishermen, cashew workers and so on.
It was also decided that nationalised and scheduled banks would provide the guarantee without asking for any collateral.
According to Mr. Abraham, if the student or the principal guarantor failed to repay the money, legal proceedings would be initiated against them even as the government paid the guaranteed money of ₹6 lakh.