MHRD plans plans to set up Education Finance Corporation

The Union HRD ministry (MHRD) has proposed to set up the Education Finance Corporation that provides easier loans to investors in education industry and loans to students with government providing guarantee. HRD minister Kapil Sibal said that the centre is discussing with the Planning Commission regarding allocation of funds for the proposed Bill.

While addressing Vithal N Chandavarkar Memorial Lecture at the Indian Institute of Science he said that there will be budgetary allocation of the Education Finance Corporation.
 
According to Sibal presently loans at cheaper rates are provided only to investors in the infrastructure sector. But now the ministry is planning to provide loans at cheaper rates to investors in education industry. He also feels that there should be a repayment period of 20-25 years for investors in the education industry.

While talking about plans for setting up ‘National Accreditation Authority’ for rating educational institutions Sibal informed that the government would also set up educational tribunals to resolve disputes.

He also stressed the need of vocational education. He said,

“We will have a ‘Vocational Education Policy’ over the next one year that will focus on skill development of the young people.”
 

He further added that increase in the number of students pursuing higher education is very necessary for better future.