The Education Loan Scheme is run by the National Scheduled Castes Finance and Development Corporation under the Ministry of Social Justice and Empowerment, Government of India.
It provides one-time assistance for SC students pursuing full-fledged Professional/Technical courses in recognized institutions, in India or abroad.
Tuition, admission, hostel, mess, book, stationery, equipment, and examination fees shall be included in the loan; travel for studying abroad, including visa, and the insurance premium for policies of life and total disability insurance taken for the benefit of the loanees, will also be covered under the loan.
Courses Covered
Eligible students can apply for loans to pursue full-time professional/technical courses in the following fields:
- Engineering (Diploma, B.Tech, B.E., M.Tech, M.E.)
- Architecture (B.Arch, M.Arch)
- Medical (MBBS, MD, MS)
- Biotechnology, Microbiology, Clinical Technology (Diploma/Degree)
- Pharmacy (B.Pharma, M.Pharma)
- Dental (BDS, MDS)
- Physiotherapy (B.Sc., M.Sc.)
- Pathology (B.Sc., M.Sc.)
- Nursing (B.Sc., M.Sc.)
- Information Technology (BCA, MCA)
- Management (BBA, MBA)
- Hotel Management & Catering Technology (Diploma/Graduation/Post-Graduation)
- Law (LLB, LLM)
- Education (CT, NTT, B.Ed, M.Ed)
- Physical Education (C.PEd, B.PEd, M.PEd)
- Journalism & Mass Communication (Graduation/Post-Graduation)
- Geriatric Care (Diploma/Post Graduate Diploma)
- Midwifery (Diploma)
- Laboratory Technician (Diploma)
- Chartered Accountancy (CA)
- Cost Accountancy (ICWA)
- Company Secretaryship (CS)
- Actuarial Sciences (Graduation/Post-Graduation/FIA)
- Associate Member of the Institute of Engineers (AMIE) & Institute of Electronics & Telecommunication
- Higher Education (Doctoral Studies leading to M.Phil/PhD)
Benefits
Maximum Loan Limit
- Up to ₹30,00,000/- for studies in India
- Up to ₹40,00,000/- for studies abroad
- Loan covers up to 90% of the course fee (whichever is lower).
Interest Rates
For Studies in India:
- 6% per annum for beneficiaries
- 5.5% per annum for women beneficiaries
For Studies Abroad:
- 7% per annum for beneficiaries
- 6.5% per annum for women beneficiaries
Repayment Period
- Loan up to ₹10,00,000/-: Repayable within 10 years
- Loan above ₹10,00,000/-: Repayable within 12 years
Eligibility
- The applicant must be pursuing full-time Professional/Technical courses in India or abroad.
- The applicant must belong to the Scheduled Caste (SC) category.
- The annual family income must be less than ₹3,00,000/- (both in rural and urban areas).
- The loan assistance is one-time only.
Application Process
Mode: Offline
Step 1: Visit the District Office of State Channelizing Agencies (SCAs) in your region.
Step 2: Submit the NSFDC Education Loan application with personal and course details.
Step 3: The District Office of SCAs/CAs will verify the eligibility and forward the application to the Head Office of SCAs.
Step 4: The Head Office of SCAs will examine the loan proposal and send recommendations to NSFDC.
Step 5: The Project and Banking Desk at NSFDC will evaluate the loan proposal.
Step 6: If approved, NSFDC will issue Sanction Letters (LOIs) with terms and conditions.
Step 7: Upon fulfillment of conditions, NSFDC will release funds to SCAs/Public Sector Banks/NBFCs.
Step 8: The sanctioned loan will be disbursed to beneficiaries through their banks.
Step 9: The loan repayment will begin as per the repayment schedule.
Documents Required
- Passport-size photograph
- Aadhaar Card
- Income Certificate
- Caste Certificate
- Residence Proof
- Valid Passport (for studying abroad)
- Valid Visa/Permit (if applicable)
- Educational Qualification Certificates
- Copy of Admission Confirmation from an Educational Institute (including fee structure)
- Identity Card issued by the Institute (if admission is confirmed)
- Any other required documents
Frequently Asked Questions (FAQs)
Q: What is NSFDC?
A: The National Scheduled Castes Finance and Development Corporation (NSFDC) is an institution under the Ministry of Social Justice and Empowerment, providing financial support to Scheduled Caste individuals.
Q: What is the maximum loan amount for studying in India?
A: ₹30,00,000/- or 90% of the course fee, whichever is lower.
Q: What is the maximum loan amount for studying abroad?
A: ₹40,00,000/- or 90% of the course fee, whichever is lower.
Q: What is the interest rate for education loans in India?
A: 6% per annum for general students and 5.5% per annum for women.
Q: What is the interest rate for education loans for studying abroad?
A: 7% per annum for general students and 6.5% per annum for women.
Q: Who is eligible for this scheme?
A: Scheduled Caste students whose annual family income is below ₹3,00,000/-, pursuing full-time professional or technical courses.
Q: Can I apply for a loan if I am doing a part-time course?
A: No, this loan is only for full-time professional/technical courses.
Q: How can I apply for this loan?
A: Visit the District Office of State Channelizing Agencies (SCAs), submit the application, and follow the approval process.
Q: What expenses are covered under this scheme?
A: Tuition fees, admission fees, hostel and mess charges, books, stationery, exam fees, travel expenses (for study abroad), visa fees, insurance premiums, and living expenses.
Sources & References
- Official Website of NSFDC
- Ministry of Social Justice and Empowerment
- NSFDC Loan Guidelines & Application Form