The “Education Loan Scheme” is implemented by the National Scheduled Castes Finance and Development Corporation (NSFDC) under the Ministry of Social Justice and Empowerment, Government of India. This scheme provides one-time financial assistance to eligible Scheduled Caste students pursuing full-time professional or technical courses in recognized institutions in India or abroad. The loan covers a wide range of educational expenses including admission fees, tuition, books, stationery, equipment, examination fees, hostel and mess expenses, insurance premium, travel expenses (including visa fees for abroad studies), caution money, development fund, and even allowances for clothing in extreme climates.
Benefits
- Maximum Loan Limit:
- Up to ₹30,00,000 for studies in India
- Up to ₹40,00,000 for studies abroad
(or 90% of the course fee, whichever is less)
- Rate of Interest:
- For studies in India: NSFDC charges interest at 2% per annum from the State Channelizing Agencies (SCAs), which in turn charge 6% per annum from the beneficiaries. Women beneficiaries receive an interest rebate of 0.5%.
- For studies abroad: NSFDC charges interest at 3% per annum from the SCAs, which in turn charge 7% per annum from the beneficiaries, with a 0.5% interest rebate for women.
- Repayment Period:
- For loans up to ₹10,00,000: Repayment within 10 years
- For loans above ₹10,00,000: Repayment within 12 years
Eligibility
-
Student Status:
The applicant must be a student pursuing regular full-time professional or technical courses in a recognized institution in India or abroad. -
Community:
The applicant must belong to a Scheduled Caste community. -
Family Income:
The applicant’s annual family income should be less than ₹3,00,000, irrespective of whether the area is rural or urban. -
Assistance Type:
The educational loan is provided as a one-time assistance covering various educational expenses. -
Courses Covered:
Eligible courses include, but are not limited to:- 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
- Law (LLB/LLM)
- Education (CT/NTT/B.Ed/M.Ed)
- Physical Education, Journalism & Mass Communication, Geriatric Care, Midwifery, Laboratory Technician, Chartered Accountancy, Cost Accountancy, Company Secretaryship, Actuarial Sciences, and higher education such as M.Phil/PhD.
Application Process
Offline
-
Contact:
Applicants should contact the District Office of the State Channelizing Agencies (SCAs) to express their interest in availing the NSFDC Education Loan. -
Submission:
Submit the application in NSFDC’s prescribed format with all the required details at the District Office of the SCAs. -
Scrutiny:
The District Offices of SCAs/Channelizing Agencies scrutinize the applications to verify eligibility and then forward the scrutinized applications to their respective Head Offices for further processing. -
Evaluation:
The Head Offices examine the loan proposals. After evaluation, the proposals are recommended for sanction and forwarded to NSFDC along with the SCAs’ recommendations. -
Appraisal:
The Project and Banking Desk at NSFDC appraises the loan proposals and prepares an appraisal report, which is then reviewed by the Project Clearance Committee (PCC) for concurrence. -
Sanction & Disbursement:
Once approved, Sanction Letters (Letters of Intent) along with the Terms & Conditions are issued to the SCAs/RRBs/Public Sector Banks/NBFC-MFIs for acceptance. After acceptance and fulfillment of prudential norms, funds are disbursed by NSFDC to the respective agencies, which in turn disburse the funds to the beneficiaries. -
Repayment:
Beneficiaries begin repaying the loans as per the repayment schedule stipulated by the SCAs/Channelizing Agencies.
Documents Required
- Passport-size photograph
- Aadhaar Card
- Income certificate
- Caste certificate
- Residence proof
- Valid Passport (for study abroad, if applicable)
- Valid Visa/Permit (if applicable for study abroad)
- Educational qualification certificates
- Copy of admission confirmation from the educational institution with the fee and other charges schedule (yearly)
- Copy of the identity card issued by the institution (if admission has already been secured)
- Any other documents as specified by NSFDC
Frequently Asked Questions
-
What is NSFDC?
NSFDC stands for the National Scheduled Castes Finance and Development Corporation, which implements this education loan scheme. -
What is the contact address of NSFDC?
Detailed contact information can be found on the NSFDC official website. -
What is the main objective of NSFDC?
The primary objective is to provide financial assistance for higher education to Scheduled Caste students. -
Which educational courses are covered by this loan scheme?
The scheme covers a wide range of professional and technical courses as listed above. -
What expenses are covered under this loan scheme?
The loan covers admission fees, tuition fees, books, stationery, equipment, examination fees, hostel and mess expenses, insurance premium, travel expenses (including visa expenses for studying abroad), caution money, development fund, and clothing allowance (where applicable). -
What is the maximum loan amount for studies in India and abroad?
- For studies in India: Up to ₹30,00,000/-
- For studies abroad: Up to ₹40,00,000/- (or 90% of the course fee, whichever is less)
-
What are the rates of interest for the loan?
- For studies in India: 6% per annum (after NSFDC charges 2% per annum to SCAs); with an interest rebate of 0.5% for women beneficiaries.
- For studies abroad: 7% per annum (after NSFDC charges 3% per annum to SCAs); with an interest rebate of 0.5% for women beneficiaries.
-
What is the repayment period for the loans?
- Loans up to ₹10,00,000: Repayment within 10 years
- Loans above ₹10,00,000: Repayment within 12 years
-
Who is eligible to apply for the education loan?
The applicant must be a Scheduled Caste student pursuing a full-time professional or technical course in a recognized institution, with an annual family income of less than ₹3,00,000. -
How can I apply for the Education Loan Scheme?
Applications are submitted offline through the District Office of State Channelizing Agencies (SCAs) in the prescribed format. -
Can the loan be used for studying part-time courses?
No, the loan is only for regular full-time courses.