(1) The State Government, may prepare a scheme for credit guarantee for educational loans taken by students studying in the University so as to ensure that such loans from banks are easily available to students for pursuing a programme of study in the University. A corpus must be established by the State Government for the same.

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(2) Every student admitted to the University shall be eligible to receive educational loan, in accordance with the scheme referred to in sub-section (1), for pursuing a programme of study at the University.