Government has approved loan scheme for students to study in higher educational institutions.
According to a statement issued by State Bank of Pakistan, the apex committee for the student loan scheme has approved Rs82.6 million as interest-free loans to deserving students for their studies within Pakistan.
The committee has representation from the State Bank of Pakistan (SBP), the finance division (government of Pakistan), and five major banks (National Bank of Pakistan, Habib Bank, United Bank, Allied Bank, and MCB Bank).
The amount, approved by the apex committee, would be disbursed to 518 deserving students of public sector universities across the country, enrolled in the under-graduate, graduate and PhD studies of various disciplines for the session 2017-18, 2018-19 and 2019-2020.
The objective of the student loan scheme is to provide financial assistance to the meritorious students having insufficient means.
The loans are granted for a maximum tenor of 10 years from the date of the disbursement of the first instalment and repayable in monthly instalments after six months from the date of first employment or one year from the date of completion of studies, whichever is earlier.
NBP, being the administrator of the scheme performs all the functions like receiving and scrutinising the loan applications, disbursement of loans and their recovery.