The Education Loan Scheme, implemented by the Delhi SC/ST/OBC/Minorities and Handicapped Financial Development Corporation Ltd. (DSFDC), Government of Delhi, provides financial assistance to students from Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC), Minority Communities, and Persons with Disabilities (PwD). This scheme enables students to pursue professional and technical courses in recognized institutions in India and abroad by offering need-based loans with flexible repayment options.
Benefits
- For studies in India: Loan up to ₹7,50,000.
- For studies abroad: Loan up to ₹15,00,000.
- No promoter’s contribution required for loans up to ₹4,00,000.
- For loans above ₹4,00,000:
- 5% contribution required for studies in India.
- 15% contribution required for studies abroad.
- Repayment period: Up to 10 years after the commencement of repayment or until employment, whichever is earlier.
- Early repayment option is available.
Eligibility Criteria
- The applicant must be a permanent resident of Delhi.
- The applicant must belong to one of the following categories:
- Scheduled Caste (SC)
- Scheduled Tribe (ST)
- Other Backward Classes (OBC)
- Minority Community
- Persons with Disabilities (PwD)
- The annual family income must be below ₹5,00,000.
- The applicant must have secured admission in a recognized government or private technical/professional institution in India or abroad.
- The institution must have been offering the course for at least three years.
- The institution must be recognized by:
- UGC (University Grants Commission)
- AICTE (All India Council for Technical Education)
- Other relevant government authorities.
- The duration of the course must not exceed five years.
Post-Sanction Eligibility for Borrowers
- The borrower must not engage in unlawful activities that could impact their education.
- The borrower cannot take on additional financial liabilities during the loan tenure.
- The borrower must seek suitable employment after completing the course and submit income details to DSFDC.
Application Process
Offline Application
- Collect the Application Form
- The application form is free of cost and available at the following locations:
- 2-Battery Lane, Rajpur Road, Delhi-54
- A-33-38, B-Block, Lal Building, Opposite Police Station, Mangol Puri, Delhi
- A-Block, 1st Floor, Bunker Vihar, Deputy Commissioner’s Office (North East), Opposite Gagan Cinema, Nand Nagri, Delhi
- Alternatively, download the application form from the official DSFDC website.
- The application form is free of cost and available at the following locations:
- Fill the Application Form
- Use black ink and a ball pen.
- Provide accurate personal, educational, and financial details.
- Attach a passport-sized photograph and self-attested copies of the required documents.
- Submit the Application
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Submit the completed form along with required documents to:
Deputy Manager (Education Loan), Room No. 208, 2nd Floor, Ambedkar Bhawan, Sector-16, Rohini, Delhi-89.
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Carry original documents for verification.
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Application Review Process
- After approval, the applicant receives a sanction-cum agreement letter.
- The applicant must sign the agreement and complete additional formalities, such as:
- Executing a guarantee deed.
- Executing a hypothecation deed.
- For further inquiries, contact DSFDC at 011-27574521 / 011-27574377.
Documents Required
Pre-Sanction / With Application
- Aadhaar Card copies of Borrower, Co-Borrower (Parents/Guardian), and Guarantor.
- Income Certificate from SDM or Form No. 16 of the Co-Borrower.
- Last Examination Mark Sheet (based on which admission was obtained).
- Four passport-sized photographs (Borrower, Co-Borrower, and Guarantor).
- One full-size photograph (for PwD applicants).
- Birth Certificate / Age Proof.
- Caste Certificate (for SC/ST/OBC) issued by SDM/DC.
- Minority Affidavit (for Minority applicants).
- Disability Certificate (for PwD applicants, issued by a government hospital).
- Affidavit stating no loan has been availed for the same purpose from another government agency.
- Proof of Admission to the recognized institution.
- Course Fee Schedule / Demand Notice from the Institution.
- Scholarship / Freeship Confirmation Letter (if applicable).
- Foreign Expenses Permit (for students going abroad).
- Last 6 months’ Bank Statement (Borrower and Co-Borrower).
- Signature Identification from the Bank (Borrower and Co-Borrower).
- Statement of Assets and Liabilities (Borrower and Co-Borrower).
Post-Sanction Documents
- Acceptance of Sanction-Cum Agreement Letter.
- Execution of Guarantee Deed.
- Execution of Hypothecation Deed.
- Affidavit of Legal Heir.
- Affidavit of Personal Guarantee (by Borrower and Co-Borrower).
- ECS (Electronic Clearing Service) / Post-Dated Cheques.
- Processing Fee of ₹350/-.
- Two Witnesses with ID Proof.
- Last Year’s Result Copy.
- Undertaking not to close Bank Account until full repayment.
Guarantor’s Documents
- Aadhaar Card / Election Card / Passport.
- Employer Identity Card.
- Latest Pay Slip and Form 16.
- Age Proof.
- 04 Passport-Sized Photographs.
- Affidavit of Guarantor.
- 5 Post-Dated Cheques (PDC) (for loans above ₹2,00,000).
- Guarantor’s Undertaking to stand as surety.
- Collateral Security (if applicable):
- NSC / KVP / FDR with Lien Letter.
- Property Mortgage Documents with Complete Chain of Documents.
Frequently Asked Questions (FAQs)
Q: What categories of students are eligible for this education loan?
Students from SC, ST, OBC, Minority Communities, and Persons with Disabilities (PwD) residing in Delhi.
Q: What is the maximum family income allowed for eligibility?
The annual family income must be below ₹5,00,000.
Q: Which institutions are eligible under this scheme?
Institutions recognized by UGC, AICTE, or other government-approved authorities.
Q: What is the maximum loan amount for studying in India?
The maximum loan amount is ₹7,50,000.
Q: What is the maximum loan amount for studying abroad?
The maximum loan amount is ₹15,00,000.
Q: Do I need to contribute any money for the loan?
- No contribution required for loans up to ₹4,00,000.
- 5% contribution required for loans above ₹4,00,000 (for studies in India).
- 15% contribution required for loans above ₹4,00,000 (for studies abroad).
Q: What are the repayment options?
Repayment starts after course completion or employment and can extend up to 10 years.