Sarkari Yojana
Education Loan Scheme (NSFDC)
About Education Loan Scheme (NSFDC)
The “Education Loan Scheme” is run by the National Scheduled Castes Finance and Development Corporation (NSFDC) under the Ministry of Social Justice and Empowerment, Government of India. Under it, a one-time loan supports full-time Professional/Technical courses at recognized institutions, covering Admission Fee, Tuition Fee, Books, Stationery, Equipment, Examination Fee, Hostel and Mess Expenses, an Insurance Premium covering the loanee against death or permanent disability, Travel Expenses/Passage Money (including Visa Expenses for study abroad), Caution Money, Development Fund, and Clothing Allowance including weather-protective clothing for extreme climates (for foreign study). Professional/Technical Courses Covered: Education loans go to eligible students pursuing regular, full-time, government-approved Professional/Technical courses in India or abroad, across 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)
- 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) and Institute of Electronics & Telecommunication
- Higher education such as Doctoral Studies leading to M.Phil/PhD from recognized institutions.
Scheme Overview
Central Government
Ministry Of Social Justice and Empowerment
National Scheduled Castes Finance And Development Corporation
Individual
Scheme Details
Eligibility Requirements
To qualify for Education Loan Scheme (NSFDC), applicants must satisfy the following conditions:
The applicant must be pursuing a regular, full-time…
The applicant must be pursuing a regular, full-time Professional or Technical course at a recognized institution in India or abroad.
The applicant must belong to a Scheduled Caste…
The applicant must belong to a Scheduled Caste community.
The applicant's annual family income must be under…
The applicant's annual family income must be under ₹3,00,000/-, whether in a rural or urban area.
This education loan assistance is provided as a…
This education loan assistance is provided as a one-time benefit.
Benefits Provided
Education Loan Scheme (NSFDC) provides the following benefits to eligible applicants:
Maximum Loan Limit:
Up to ₹30,00,000/-
(for studies in India) and up to ₹40,00,000/- (for studies abroad), or 90% of course fee, whichever is less. Rate of Interest:
For studies in India:
NSFDC charges 2% per annum interest to the SCAs, which in turn charge beneficiaries 6% per annum, with a 0.5% interest rebate for women beneficiaries.
For studies abroad: NSFDC charges 3% per annum interest to the SCAs, which in turn charge beneficiaries 7% per annum, with a 0.5% interest rebate for women beneficiaries.
Repayment Period:
The maximum repayment period under the Educational Loan Scheme is:-
For loans up to ₹10,00,000/-:
Within 10 years
For loans above ₹10,00,000/-: Within 12 years
Documents Required
Applicants should keep the following documents ready before starting the application:
A passport-size photograph of the applicant
A passport-size photograph of the applicant
The applicant's Aadhaar Card for identification
The applicant's Aadhaar Card for identification
A certificate stating the family's income
A certificate stating the family's income
Proof of the applicant's caste in the form…
Proof of the applicant's caste in the form of a caste certificate
A document confirming where the applicant lives
A document confirming where the applicant lives
A Passport that is still valid (only for…
A Passport that is still valid (only for those going to Study Abroad)
A Visa or Permit that is valid (where…
A Visa or Permit that is valid (where applicable for study abroad)
Certificates proving the student's educational qualifications
Certificates proving the student's educational qualifications
A copy of the admission confirmation issued by…
A copy of the admission confirmation issued by the educational institute, showing the yearly schedule for payment of fees and other charges
Where admission has already been taken, a copy…
Where admission has already been taken, a copy of the identity card the Institute has issued
Any additional documents that may be asked for
Any additional documents that may be asked for
How to Apply
Offline Application
Applicants can apply for Education Loan Scheme (NSFDC) through the offline application process outlined below.
Applicants wishing to avail an NSFDC Education Loan…
Applicants wishing to avail an NSFDC Education Loan should contact the District Office of the State Channelizing Agencies (SCAs).
Applicants must submit the application in NSFDC's format,…
Applicants must submit the application in NSFDC's format, with their details, at the District Office of the State Channelizing Agencies.
The District Offices of the SCAs/CAs scrutinize the…
The District Offices of the SCAs/CAs scrutinize the applications to check eligibility.
The District Offices forward the scrutinized applications to…
The District Offices forward the scrutinized applications to their respective Head Offices for further processing.
The Head Offices of the SCAs/CAs examine the…
The Head Offices of the SCAs/CAs examine the loan proposals and, once cleared, recommend them for sanction, forwarding them to NSFDC along with the SCAs' recommendations.
NSFDC's Project and Banking Desk appraises the loan…
NSFDC's Project and Banking Desk appraises the loan proposals submitted by the SCAs/CAs, preparing an appraisal report and submitting it to the Project Clearance Committee (PCC) for concurrence.
The PCC reviews the appraisal report and, if…
The PCC reviews the appraisal report and, if satisfied, recommends the proposals for sanction. Sanction Letters, known as Letters of Intent (LOIs), with Terms & Conditions, are issued to the SCAs/RRBs/Public Sector Banks/NBFC-MFIs for acceptance.
Once the sanction terms are accepted and Prudential…
Once the sanction terms are accepted and Prudential Norms are met, NSFDC disburses funds to the SCAs/RRBs/Public Sector Banks/NBFC-MFIs, who then disburse these funds to the beneficiaries.
Beneficiaries repay the loans as per the repayment…
Beneficiaries repay the loans as per the repayment schedule set by the SCAs/CAs.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.