The Education Loan Scheme by the National Scheduled Castes Finance and Development Corporation (NSFDC) under the Ministy of Social Justice and Empowerment provides financial assistance to SC students pursuing full-time professional or doing technical courses in recognized institutions in India or abroad. This loan scheme aims to empower SC students by providing education loans for graduate and postgraduate studies in various professional fields.
Benefits of the Scheme
- Maximum Loan Amount:
- Up to ₹30 lakhs for studies in India (or 90% of the course fee, whichever is lower).
- Up to ₹40 lakhs for studies abroad (or 90% of the course fee, whichever is lower).
- Rate of Interest:
- For studies in India:
- 6% for male candidates
- 5.5% for female candidates
- For studies abroad:
- 7% for male candidates
- 6.5% for female candidates
- For studies in India:
- Repayment Period:
- For loans up to ₹10 lakhs:
- 10 years repayment period (for studies in India).
- 12 years repayment period (for studies abroad).
- For loans up to ₹10 lakhs:
- Moratorium Period:
- 6 months after course completion or getting employment, whichever is earlier.
- Covers 90% of the total course fee, reducing the financial burden on students.
Eligible Courses
The loan can be availed for full-time courses in the following fields in India or abroad:
1. Technical and Professional Courses
- Engineering (Diploma/B.Tech/B.E./M.Tech/M.E.)
- Architecture (B.Arch/M.Arch)
- Medical & Allied Fields
- MBBS/MD/MS
- Biotechnology/Microbiology/Clinical Technology
- Pharmacy (B.Pharma/M.Pharma)
- Dental (BDS/MDS)
- Physiotherapy (B.Sc./M.Sc.)
- Pathology (B.Sc./M.Sc.)
- Nursing (B.Sc./M.Sc.)
- IT & Management
- Information Technology (BCA/MCA)
- Management (BBA/MBA)
- Hotel Management & Catering Technology
- Law & Mass Communication
- Law (LLB/LLM)
- Journalism & Mass Communication
- Education & Physical Education
- B.Ed./M.Ed.
- Physical Education (C.P.Ed./B.P.Ed./M.P.Ed.)
- Finance & Business Studies
- Chartered Accountancy (CA)
- Cost Accountancy (ICWA)
- Company Secretaryship (CS)
- Actuarial Sciences (Graduation/Post-Graduation)
- Higher Education & Research
- Doctoral Studies (M.Phil./PhD)
Eligibility Criteria
- The applicant must belong to the Scheduled Caste (SC) community.
- The applicant must be pursuing a full-time professional or technical course.
- The family income should not exceed ₹3.00 lakhs per annum.
- Loan applications must be routed through the concerned State Channelizing Agencies (SCAs) or Channelizing Agencies (CAs).
- There is no income criterion under Skill Development Training Programmes.
Exclusions
- The loan cannot be availed for already completed courses.
- Only full-time courses are eligible (part-time and correspondence courses are not covered).
Application Process
Online Application Process
- Visit the Official Website of NSFDC or the respective State Channelizing Agency (SCA).
- Click on the Education Loan Application Form.
- Fill in all required details (Personal, Educational, and Financial information).
- Upload the required documents.
- Submit the application online and note the application number for tracking.
Offline Application Process
- Visit the nearest State Channelizing Agency (SCA) office.
- Collect the application form and fill in the details.
- Attach self-attested copies of the required documents.
- Submit the completed application form at the SCA office.
- Obtain the acknowledgment receipt for reference.
Documents Required
- Proof of Identity: Aadhaar Card
- Recent Passport-Sized Photograph
- Proof of Educational Qualification:
- Passing Certificate / Marksheet of the last examination
- Caste Certificate: Issued by the relevant authority of the District Administration
- Annual Family Income Certificate:
- Self-certification of the beneficiary with endorsement by a Gazetted Officer
- If applying through a bank, the Bank Branch Manager must assess and endorse it
- Bank Account Details of the Applicant
- Admission Letter from the Institution
- Course Fee Structure Document
Frequently Asked Questions (FAQs)
Q: What is the full form of NSFDC?
A: NSFDC stands for National Scheduled Castes Finance and Development Corporation.
Q: Which ministry manages this scheme?
A: The scheme is managed by the Ministry of Social Justice and Empowerment.
Q: What purposes can the loan be used for?
A: The loan can be used for course fees, hostel charges, books, equipment, and other study-related expenses.
Q: What percentage of the course fee is covered?
A: The scheme covers up to 90% of the total course fee, subject to a maximum of ₹30 lakh (India) or ₹40 lakh (abroad).
Q: What does ‘SCA’ stand for?
A: SCA stands for State Channelizing Agency, which processes and forwards loan applications to NSFDC.
Q: Can students pursuing part-time or online courses apply?
A: No, only full-time courses from recognized institutions in India or abroad are eligible.
Q: What is the repayment period of the loan?
A:
- 10 years for loans up to ₹10 lakhs (India)
- 12 years for loans up to ₹40 lakhs (abroad)
Q: Is there a moratorium period for repayment?
A: Yes, students get 6 months after course completion or employment before loan repayment starts.
Q: Is there an upper ceiling on the family income for eligibility?
A: Yes, the family income should not exceed ₹3.00 lakhs per annum.
Sources & References