SBP approves Rs82.6 mn interest free loans under Student Loan Scheme

ISLAMABAD: State Bank of Pakistan (SBP) on Friday announced the approval of interest-free loans of Rs82.6 million to be distributed among deserving students in the country, ARY NEWS reported.

According to details shared by the SBP, the Apex Committee for Student Loan Scheme having representation from the central bank, federal finance division and five major banks (NBP, HBL, UBL, ABL, and MCB Bank) has approved Rs 82.6 million as interest-free loans to deserving students for their studies within Pakistan.

The amount, approved by Apex Committee, will be disbursed to 518 deserving students of public sector universities across the country, studying in different disciplines of under-graduation, graduation and PhD studies for the Session 2017-18, 2018-19, and 2019-2020.

The objective of the Student Loan Scheme, according to the SBP, is to provide financial assistance to meritorious students having insufficient means.

Read More: PEOPLE CAN AVAIL HOUSING LOANS WITHOUT DOCUMENTED INCOME SOURCE: SBP

The loans are granted for a maximum tenor of 10 years from the date of the disbursement of the first installment and repayable in monthly installments after six months from the date of first employment or one year from the date of completion of studies, whichever is earlier.

National Bank of Pakistan, being the administrator of the Scheme, performs all the functions like receiving and scrutinizing the loan applications, disbursement of loans and their recovery.

The SBP has also released a list of the students who have availed facility.