An education loan scheme launched in the Dharmapuri district of Andhra Pradesh, through the Socio Economic Development programme ( SEDP) has helped students from weaker sections of society to a great extent.

The scheme was formulated to bring about a big change in the lives of weaker sections of the society who lived in areas inhabited by Naxalites. This scheme is being implemented in 153 villages in five Naxal inhabited areas.

According to the scheme, subsidy component would be 20 per cent of the education loan subject to the maximum of Rs. 25,000 to the eligible candidates from the Naxal-infested villages identified by the district administration.

Subsidy would only be sanctioned for the candidates, whose parental income is less than Rs. 50,000 per year. Candidates would be required to produce an income certificate from the Tahsildhar. Other important prerequisite is that the student should be a first generation graduate/diploma holder in the family.

Last academic year, district administration allocated Rs. 50 lakh for extending education loan subsidy to 200 students but actually provided it to 216 students. 159 students availed subsidy for Engineering, four for Agriculture, three for Medicine, two for Nursing, 21 for B.Sc., four for MBA, one for Teacher Training and six students for pursuing B.Ed.

More than 200 applications have been received for the current (2009-10) academic year and have been sent for DRDA's approval, said Ms. D. Bama, Manager, Lead District Bank, Dharmapuri.

Recently many initiatives have been taken in the area of education loan. For instance, in Virudhnagar district in MP, there has been a revision in eligibility criteria for education loans.