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New Delhi, Oct 10 (IANS) The government is coming up with a scheme for students to facilitate study loans from banks without depositing any security.

The human resource development (HRD) ministry, University Grant Commission (UGC) and the Planning Commission have mooted the plan and soon a centralised authority will be set up to take care of the issue.

"Currently, banks are providing study loans worth Rs. 150 billion annually. We are setting up a Higher Education Loan Guarantee Authority to help underprivileged students cross the hurdle," B. Mungekar, member Planning Commission told around 300 vice chancellors gathered in Delhi.


Elaborating, he told IANS: "The body will shortlist good educational institutions and would stand guarantee on behalf of the meritorious students who seek study loans."

"Depending upon their requirement, they will get loans up to Rs 1.5 million from banks. They will not have to give any security for this," Mungekar said.

He added that central government need to spend more on higher education as currently 82 percent of the higher education budget comes from the states.

Mungekar called upon vice chancellors to press their respective state governments to fill all the vacancies in colleges and universities.

"From 30 to 60 percent of teaching staff posts are vacant in higher education sector. How can we expect excellence? Please pressurise state governments to fulfil these vacancies," he said.

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