Relief for Students! Study Loan Limit to Rise To 
7.5 Lakhs
Bangalore: A sign of relief is seen for many students who have to go through tough situations when it comes to accessing study loans. The limit on collateral-free (loan without guarantee) loan is likely go up from 
4 lakhs to 7.50 lakhs per student. Finally the government has finalized the credit guarantee fund which was proposed by the than finance minister Pranab Mukherjee in 2012.
"This was proposed in last year's budget. Details have been worked out. It will ensure faster and easy flow of credit to needy students," said an official on condition of anonymity, quoted mydigitalfc.com.
Government has formed this credit guarantee fund to ensure banks and pool their risks in case non-recovery of the loan amount. The credit guarantee fund will ensure better streaming of credit to justified students and will be the granter of education loans certified under the Model Educational Loan Scheme developed by the Indian Banks Association.
