Government reduces interest rates of educational loans by 3%
YEREVAN, MARCH 21, ARMENPRESS. The Armenian government has lowered the interest rates for student loans and increased the maximum annual sum of provided credits.
The decision was adopted during today’s Cabinet meeting.
Currently, 10 commercial banks are dealing with crediting as part of the education loan interest rate subsidy project.
As of January 15th, 2019, more than 1400 loans worth a total of 258,000,000 drams have been issued, Minister of Education and Science Arayik Harutyunyan said.
The decision was adopted because the current tuition fees in several educational facilities are higher than the maximum annual sum of loans. Therefore the amendments enable new opportunities in terms of accessibility.
“In particular, it is planned to raise the annual maximum sum of provided loans up to 700,000 drams instead of the current 450,000 drams”, the minister said.
“At the same time, it is planned to reduce the maximum interest rate of crediting up to 9% annually, instead of the current 12%,” Harutyunyan said.
“This is a favorable change for students,” Prime Minister Nikol Pashinyan added during the Cabinet meeting. Pashinyan said that factually the move increased the maximal threshold of the loan and reduces by 3% the educational loan interest rate.
Edited and translated by Stepan Kocharyan