Kerala to help defaulters repay educational loans

THE LDF government in Kerala on Thursday announced a Rs 9,00-crore scheme to help defaulters from economicallybackward families to repay their educational loans taken by mortgaging property.

Chiefministerpinarayivijayan explained the need for introducing the scheme in the assembly, saying that the defaulted educational loans and tough recovery processesofbankshavebecomea major social issue. Vijayan said thatitwasnotadebtreliefscheme but a repayment mechanism.

Support will be offered to those,whohaveavaileduptors9 lakhloansandhaveannualfamily income of Rs 6 lakh. Vijayan said that the government would help students repay their loans that havebecomenon-performingassets (NPAS). In case of loans up to Rs 4 lakh, which have become Npas,thegovernmentwouldhelp borrowers by paying 60 per cent of the principal amount. The scheme will come into effect retrospectively from March 31, 2016.

Vijayan said that the state would repay the entire principal amount in cases of students, who havediedorfacedphysicaldisability during the repayment period.

The government has separately announced five-fold increaseinmonthlyhonorariumfor nursery teachers, nursery maids and librarians at cultural centres. The librarians at cultural centres under the local governing bodies were getting a monthly allowance of Rs 2,050. This has been increased to Rs 12,000. The same amount will be given to nursery teachers at children’s mandirs controlled by government. The nursery maids’ honorarium has been increased from Rs 1,400 to Rs 8,000.