New Delhi, June 11 (IANS): The Aam Aadmi party government on Thursday launched a higher education and skill education guarantee scheme to provide a Rs.10 lakh bank loan to students from Delhi.

"Under the scheme, regardless of the student's financial condition, they would be provided Rs.10 lakh as loan without any collateral or third-party guarantee or margin money. There would be no processing charges for the loan," said the statement issued by the state government.

"Students pursuing any skill development course or diploma or degree course after finishing qualifying examination from any school/educational institution in Delhi are eligible under this scheme. The scheme will also be applicable for ITIs and polytechnic colleges," the statement added.

The statement further said that the loan repayment schedule would carry a moratorium period covering the years required to finish the course and one year thereafter to find a job.

Repayment of loan will be in Equated Monthly Installments (EMIs) of 15 years. The maximum interest rate would be lower than the ones offered by banks, it said.

"Students would be able to pay tuition and other fees, buy books, equipment like laptops."

To keep a check on the scheme, the government has also decided to form a grievance redressal committee, progress report of students from institutions to be sent to the banks, the statement said

The applications will be received either directly at bank branches or online and the loan will be disbursed directly to the institution concerned.