New Delhi: A new scheme for providing study loan to tribal students was launched by the Union Government on Thursday.

Loan at concessional interest rate will be given to students having annual family income upto double the poverty line. The present limit is Rs.39,500/- p.a. for rural areas and Rs.54,500/- p.a. for the urban areas.

'The eligible candidates should apply to the respective State Channelising Agencies of National Scheduled Tribes Finance and Development Corporation (NSTFDC) located in their domicile State or union territory,' Tribal Affairs Minister V. Kishore Chandra Deo said launching the scheme.

Upto 90 percent of the total expenditure of the candidates will be given to the students, going upto a maximum of Rs. 5 lakh.

The rate of interest on the loan will be six percent. The repayment of loan will have to be done in within five years, with a maximum period of 10 years. This period will start after an year of completing the course or after six months of getting a job. IANS