BREAKING: FM Sitharaman Announces More Support For Higher Education Loans Upto Rs 10 Lakh

New Delhi: In the Union Budget 2024 presented today, Finance Minister Nirmala Sitharaman announced significant measures to support higher education and skill development for Indian youth. She announced a scheme for the higher education loan of up to Rs 10 lakh with an annual interest subsidy of 3%. The new initiatives aim to make higher education more accessible through financial support and revamp skilling programs to align with industry needs.

Rs 1.48 Lakh Crores Allocation For Education, Employment, Skilling

 Education Loans for Higher Education

To assist youth who are not eligible for benefits under existing government schemes and policies, the government has introduced financial support for education loans up to ₹10 lakh for higher education in domestic institutions. One lakh students will receive e-vouchers directly for an annual interest subsidy of 3% on the loan amount. This initiative is expected to ease the financial burden on students pursuing higher education and improve access to quality education.

Details:
- E-Vouchers: One lakh students will receive e-vouchers directly for an annual interest subsidy of 3% on the loan amount.
- Impact: This initiative is expected to ease the financial burden on students pursuing higher education and improve access to quality education.

 Skilling Initiatives

Central Government Skilling Program: 

The government plans to skill 20 lakh youth over a five-year period under a central government skilling program. This initiative includes upgrading 1,000 industrial training institutes (ITIs) to ensure they are outcome-oriented. Course content and design will be aligned with industry skill needs, and new courses will be introduced to meet emerging demands. Additionally, skilling loan schemes will be revised to facilitate loans up to ₹7.5 lakh, with a guarantee from a government-promoted fund. This will help 25,000 students annually.

Details:
- Course Alignment: Course content and design will be aligned with industry skill needs, and new courses will be introduced to meet emerging demands.
- Skilling Loans: Skilling loan schemes will be revised to facilitate loans up to ₹7.5 lakh, with a guarantee from a government-promoted fund. This will help 25,000 students annually.

 Women in the Workforce

Support for Working Women:

The budget also addresses the need to increase women's participation in the workforce by setting up working women hostels in collaboration with industry and establishing crèches. The partnership will focus on organizing women-specific skilling programs and promoting market access for women Self Help Group (SHG) enterprises. Furthermore, the government will support additional employment in all sectors by reimbursing employers up to ₹3,000 per month for two years towards EPFO contributions for each additional employee. This scheme is expected to benefit 50 lakh persons.

"We will facilitate higher participation of women in the workforce by setting up working women hostels in collaboration with industry and establishing crèches. The partnership will seek to organize women-specific skilling programs and promotion of market access for women SHG enterprises," said Finance Minister Nirmala Sitharaman

Details:
- Skilling Programs: The partnership will focus on organizing women-specific skilling programs and promoting market access for women Self Help Group (SHG) enterprises.
- Employee Incentive Scheme: The government will support additional employment in all sectors by reimbursing employers up to ₹3,000 per month for two years towards EPFO contributions for each additional employee. This scheme is expected to benefit 50 lakh persons.