Election Commission asks government to stop interest-waiver scheme for students till elections are over
Posted on: 15/Apr/2014 3:39:45 PM
Finance Minister P Chidambaram while tabling the interim budget on 17th February announced the waiver of interest on education loans taken before March 2009 those were outstanding at the end of December 2013. However, borrowers are required to pay regular interest after January 1, 2014.As per the announcement Rs 2,600 crore was transferred to the designated Central Scheme for Interest Subsidy (CSIS) banker Canara Bank.
The Election Commission has asked the government not to implement a Rs 2,600 crore scheme to provide a moratorium on interest payments on the education loans of 9 lakh students until the elections are completed.
The interest-waiver scheme can be implemented by the Finance Ministry after the election process.
It also asked the ministry to ensure that no publicity of the scheme is made during the election period. Voting in the Lok Sabha elections is scheduled to end on May 12 and counting will be taken up on May 16.
