Q. Consider the following statements regarding the Higher Education Financing Agency (HEFA):
1. It is a not-profit banking agency established in 2017.
2. It is established to mobilise extra-budgetary resources for building crucial infrastructure in the higher educational institutions under Central Government.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B
Notes:

HEFA has been set up on 31st May 2017 by the Central Government as a non-profit, Non Banking Financing Company (NBFC). 

HEFA was established to mobilize extra-budgetary resources for building crucial infrastructure in the higher educational institutions under Central Government. 

NOTE: The Government has approved the authorised equity capital expansion of Higher Education Financing Agency (HEFA)  to Rs. 10,000 crore, with Government equity of Rs. 6000 crore.  

  • An amount corresponding to 10% of the Government equity would be contributed by the partner institution, Canara Bank. 
  • All Centrally Funded Educational Institutions in Higher Education, School Education and Medical Education sectors are eligible to avail of loans through HEFA.  

Source: ForumIAS factly