Med­i­cal col­lege fee: Ker­ala govt. to stand guar­an­tee

To help stu­dents un­able to mo­bilise ad­di­tional ₹6 lakh

The Hindu - - SOUTH - Spe­cial Cor­re­spon­dent

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.

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