Finance Minister Nirmala Sitharaman on Tuesday announced education loans of up to Rs 10 lakh for students pursuing higher education in domestic institutions.

Presenting the Union Budget 2024, Sitharaman said, “This year, I have made a provision of Rs 1.48 lakh crore for education, employment, and skilling.”

Advertisement

“For helping our youth, who have not been eligible for any benefit under government schemes and policies, I am happy to announce financial support for loans of up to Rs 10 lakh for higher education in domestic institutions,” she said.

The finance minister said E-vouchers would be given for this purpose directly to one lakh students every year at an annual interest subvention of 3 per cent of the loan amount.

She also announced that the model skill loan scheme would be revised to facilitate loans of up to Rs 7.5 lakh with a guarantee from a government-promoted fund. This measure is expected to help 25,000 students every year, she added.

Sitharaman also announced a new centrally sponsored scheme for skilling in collaboration with state governments and industry. “Twenty lakh youth will be skilled over a five-year period. 1,000 Industrial Training Institutes (ITIs) will be upgraded in the hub and spoke arrangements with outcome orientation,” she said.

She said the course content and design would be aligned to the skill needs of the industry, and new courses will be introduced for emerging needs.

The finance minister also announced that the government would launch a comprehensive scheme for providing internship opportunities in 500 top companies to a crore youth for five years and said they would gain exposure for 12 months to real-life business environments, varied professions, and employment opportunities.

“An internship allowance of Rs 5,000 per month along with a one-time assistance of Rs 6,000 will be provided. Companies will be expected to bear the training cost and 10 per cent of the internship cost from their CSR (Corporate Social Responsibility) funds,” she said.

The finance minister further said, “For promoting women-led development, the budget carries an allocation of more than Rs three lakh crore for schemes benefitting women and girls.”

She added that this signals the government’s commitment to enhancing women’s role in economic development.