Interest-free loans for students planned

KARACHI: The government has approved Rs1.987 million interest-free loans to deserving students for their current year of studies within Pakistan, a statement issued by the central bank said on Monday.

The amount approved by apex committee for student loan scheme has representation from the State Bank of Pakistan, Finance Division, Government of Pakistan, and five major banks (NBP, HBL, UBL, ABL and MCB Bank).

“The amount will be given to 966 deserving students of public sector universities across the country, studying in different disciplines of under-graduation, graduation and Ph.D. studies for the session 2016/2017,” the SBP said.

“The objective of the student loan scheme is to provide financial assistance to the meritorious students having insufficient means,” it added.

The loans are granted for a maximum tenor of 10 years from the date of the disbursement of the first installment and repayable in monthly installments after six months from the date of first employment or one year from the date of completion of studies, whichever is earlier.” “National Bank of Pakistan, being the administrator of the scheme, performs all the functions like receiving and scrutinising the loan applications, disbursement of loans and their recovery,” it added.