The Hindu : Andhra Pradesh / Hyderabad News : Education loans: IIIT, Andhra Bank sign Memorandum of Understanding

Online edition of India's National Newspaper
Thursday, Jul 06, 2006

Andhra Pradesh

Andhra Pradesh - Hyderabad

Education loans: IIIT, Andhra Bank sign Memorandum of Understanding

Staff Reporter

Scheme to cover undergraduate and postgraduate students of institute

HYDERABAD: The International Institute of Information Technology (IIIT) Hyderabad and Andhra Bank on Wednesday signed a Memorandum of Understanding (MoU) under which the bank would extend education loans at low rate of interest to undergraduate and postgraduate students of the institute.

Rajeev Sangal, Director, IIIT-H and K. Rama Krishnan, CMD of Andhra Bank, represented the respective institutions. Loans would be provided under the Dr. Pattabhi Vidyajyothi Scheme of the bank with no collateral security.

Interest rate

The maximum amount would be of Rs. 4 lakhs with 9.5 per cent interest rate. Girl students would get the loan at 9 per cent interest with the repayment period being five to seven years in monthly instalments. Repayment would start six months after getting the job, or one year after completion of the course, whichever was earlier.

Mr. Rama Krishnan presented cheques for educational loans to five B.Tech and M.Tech students. He said the bank had so far extended Rs. 1,012 crores to 46,919 students with an outstanding of Rs. 677.43 crores by the end of March 2006. The bank was aiming to reach the target of Rs. 1,250 crores by March 2007.

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