KR Periyakaruppan, Minister of Cooperation, Givernment of Tamil Nadu, informed on Tuesday, June 11, that cooperative banks will now be offering education loans of up to Rs 5 lakh and this will begin from this academic year onwards.

It may be recalled that, so far, members of cooperative societies were issued loans of a maximum of Rs 1 lakh.

In a release, Periyakaruppan stated that these loans would cover hostel fees, book fees, food expenses, tuition fees and also other related costs, and can be obtained via central district cooperative banks and other banks.

The facility is available for students who are pursuing Arts and Science, Engineering, Medical, and other professional courses, ranging from the first year to the third year of study, stated a report by The New Indian Express.

Periyakaruppan also said students who avail themselves of education loans can begin repaying the dues six months after completing their studies and can complete the repayment within five years.

An interest of 10% will be levied on the loan amount.

The minister also said that students from minority communities can apply for loans from the Tamil Nadu Minorities Economic Development Corporation, which will be distributed through cooperative banks.