Chief Minister of Karnataka, BS Yedyurappa said that the state will lower the interest rate on education loans of up to Rs 5 lakh, by 6 percent.

"To better the education system and to make it affordable to all, the state will reduce the interest rate to six per cent on education loans up to Rs. 5 lakh,'' he said.

The minister added that the step will help in attracting more students to the state for pursing their studies. The minister also announced establishment of six new universities in the state. The names include - Sankrit and Veda University (Bangalore), Music and Fine Arts University (Mysore), Agriculture and Horticulture University (Raichur), Law University (Hubli) and New Davangere University (Davangere). The government also plans to set up a polytechnic university and an ayurvedic univserity in the state.

Education sector has been the focus of union government and is likely that education would one of the focus areas of this year budget.

Vijay Moza, chairman, Clinical Research Education & Management Academy suggested that the government must abolish the service tax, ease the requirements for procuring education loans and reduce the interest rates on these loans from the current 11-12 percent to single digit figure of 8 percent.