The Education Loan Scheme (ELS) is launched by the Ministry of Social Justice and Empowerment for Safai Karamcharis, Manual Scavengers, and their dependents aged 18 years and above. This scheme provides financial assistance for pursuing higher education in India and abroad through State Channelising Agencies (SCAs), Regional Rural Banks (RRBs), and Nationalised Banks.
Benefits
- Loan Amount:
- Up to ₹10 lakh for study in India.
- Up to ₹20 lakh for study abroad.
- Interest Rate:
- 4% per annum.
- 0.5% rebate for women (for study in India).
- Repayment:
- 5 years after course completion.
- Quarterly interest payment required during course period.
- Moratorium Period:
- 1 year after course completion.
- Coverage Includes:
- Admission & tuition fees.
- Books, stationery, & required course materials.
- Examination fees.
- Boarding & lodging expenses.
- Insurance premium for policy.
- Additional Benefit:
- The interest on Education Loan (for study in India) is reimbursable under the Ministry of Education’s scheme for students whose family annual income is up to ₹4.50 lakh.
Eligibility Criteria
The following individuals/entities are eligible for financial assistance:
- Safai Karamcharis, including Waste Pickers.
- Identified Manual Scavengers and their dependents.
- Registered Co-operative societies of the target group.
- Legally constituted associations/firms promoted by the target group.
- Individuals with a certificate from an authorized official, such as:
- Local Revenue Officer.
- Municipal Officer/Cantonment Executive Officer.
- Railway Officer.
- Head of Government Departments (Schools, Colleges, Health, Education, etc.).
- Elected Members of Municipal Bodies.
- Pradhan of Gram Panchayats.
- Regional Managers of RRBs/Nationalised Banks.
- Mukhia/Sarpanch/President or an equivalent authority in rural areas.
- For Manual Scavengers: Those identified in a survey do not need an additional certificate if listed in the final list prepared by State Governments/UT Administration.
Application Process
Online Application Steps
- Submit the loan application to the district offices of SCAs, RRBs, or Nationalised Banks.
- The district office forwards applications to the head office for appraisal.
- Project proposals are reviewed by SCA/RRBs/Nationalised Banks and sent to NSKFDC for final approval.
- Project Appraisal Committee of NSKFDC evaluates the proposals and presents them to the Board of Directors for final sanction.
- Sanction letters are issued by SCAs/RRBs/Nationalised Banks.
- Once the terms and conditions are accepted, necessary documents are submitted, and funds are disbursed to the beneficiary.
- NSKFDC releases funds upon receiving demand from SCAs/RRBs/Nationalised Banks based on their Lending Policies & Guidelines (LPG).
Documents Required
- Aadhaar Card.
- Income Certificate.
- Caste Certificate.
- Bank Account Statement.
- Educational Certificates.
Frequently Asked Questions (FAQs)
- Q: What is the maximum loan amount available under this scheme?
₹10 lakh for study in India and ₹20 lakh for study abroad. - Q: What is the interest rate for the education loan?
4% per annum (3.5% for women in case of study in India). - Q: What is the repayment period?
5 years after course completion. - Q: What expenses are covered under this scheme?
Tuition fees, books, stationery, examination fees, boarding & lodging, and insurance premium. - Q: What is the moratorium period?
1 year after course completion. - Q: Who is eligible for this scheme?
Safai Karamcharis, Waste Pickers, Manual Scavengers, and their dependents. - Q: How is the loan disbursed?
Through SCAs, RRBs, and Nationalised Banks, with funds released by NSKFDC.