Banks to Provide Interest Free Loans Worth Rs. 82 Million to Deserving Students

Banks have approved an amount of Rs. 82.6 million as interest-free loans to deserving students for their studies within Pakistan. The approvals were given in the Apex Committee for Student Loan Scheme, with representation from the State Bank of Pakistan, Finance Division (Government of Pakistan), and five major banks (NBP, HBL, UBL, ABL, and MCB Bank). ALSO READ ADB To Provide $235 Million Loan for Development of Highways Accordingly, the amount approved by the Apex Committee will be disbursed to 518 deserving students of public sector universities across the country, studying in different disciplines of undergraduate, graduate, and Ph.D. studies for the Session 2017-18, 2018-19 and 2019-2020. The objective of the Student Loan Scheme is to provide financial assistance to meritorious students having insufficient means. 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 scrutinizing the loan applications, disbursement of loans, and their recovery. The names of successful students are available at the National Bank of Pakistan’s website. The scheme is valid for this year as well, according to the announcement made by the Federal Finance Minister in his 2001-2002-budget speech. ALSO READ FBR Issues Clarification on Access to Banking Transaction Accordingly, the Student Loan Scheme for Education was launched by the Government of Pakistan in collaboration with the major commercial banks of Pakistan (NBP, HBL, UBL, MCB, and ABL). Under the Scheme, financial assistance is provided by way of Interest-Free Loans to the meritorious students who have financial constraints for pursuing their studies in Scientific, Technical and Professional education within Pakistan. The Scheme is being administered by a high-powered committee comprising the Deputy Governor, State Bank of Pakistan, Presidents of the commercial banks, and representatives of the Ministry of Finance, Government of Pakistan. Students who will be eligible to apply for loans should meet the following criteria: ALSO READ Airlift Raises $85 Million in Largest Round for Pakistani Startups The maximum period of repayment of the loan is 10 Years from the date of disbursement of the first installment. The borrower shall repay the loan 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. Further details can be viewed here. The list of selected colleges and universities is here.