Education Loan Scheme (NSFDC)

What is Education Loan Scheme (NSFDC)?

The scheme implemented by the National Scheduled Castes Finance & Development Corporation, Ministry of Social Justice & Empowerment, Govt. of India. Under this Scheme, loan is provided for pursuing full-time Professional/Technical courses in recognized institutions as one time assistance.

Benefit

**Maximum Loan Limit:** - **Up to ₹30,00,000/-** (for studies in India) and **upto ₹40,00,000/-** (for studies abroad) or 90% of course fee, whichever is less. **Rate of Interest:** - **For studies in India:** NSFDC shall charge interest @ 2% per annum from the SCAs, which in turn, shall charge 6% per annum from the beneficiaries. In case of women beneficiaries, an interest rebate of 0.5% is provided. - **For studies abroad:** NSFDC shall charge interest @ 3% per annum from the SCAs, which in turn, shall charge 7% per annum from the beneficiaries. In case of women beneficiaries, an interest rebate of 0.5% is provided. **Repayment Period:** The maximum repayment period under the Educational Loan Scheme is as under:- - **For Loan up to ₹10,00,000/-:** Within 10 years - **For Loan above ₹10,00,000/-:** Within 12 years

Level

Central

Ministry / Dept.

Ministry Of Social Justice and Empowerment

Benefit type

cash

Key eligibility

1. The applicant should be a student pursuing regular full-time Professional or Technical courses in a recognized institution in India or abroad. 1. The applicant should belong to a Scheduled Caste community. 1. The applicant's annual family income should be less than ₹3,00,000/-, both in rural

Last verified

Recently

Benefits

**Maximum Loan Limit:** - **Up to ₹30,00,000/-** (for studies in India) and **upto ₹40,00,000/-** (for studies abroad) or 90% of course fee, whichever is less. **Rate of Interest:** - **For studies in India:** NSFDC shall charge interest @ 2% per annum from the SCAs, which in turn, shall charge 6% per annum from the beneficiaries. In case of women beneficiaries, an interest rebate of 0.5% is provided. - **For studies abroad:** NSFDC shall charge interest @ 3% per annum from the SCAs, which in turn, shall charge 7% per annum from the beneficiaries. In case of women beneficiaries, an interest rebate of 0.5% is provided. **Repayment Period:** The maximum repayment period under the Educational Loan Scheme is as under:- - **For Loan up to ₹10,00,000/-:** Within 10 years - **For Loan above ₹10,00,000/-:** Within 12 years

Eligibility

Documents Required

How to Apply

1. Step 1: Offline application — step 1

   Step 1: The applicants should contact the District Office of State Channelizing Agencies (SCAs) if they wish to avail NSFDC Education loan. Step 2: The applicants are required to submit the application in NSFDC's format with their details at the District Office of State Channelizing Agencies. Step 3: The District Offices of SCAs/CAs scrutinize the applications to ensure they meet the eligibility criteria. Step 4: The District Offices forward the scrutinized applications to their respective Head Offices for further processing. Step 5: The Head Offices of SCAs/CAs examine the loan proposals and after examination, loan proposals are recommended for sanction and forwarded to NSFDC along with the SCAs' recommendations. Step 6: The Project and Banking Desk at NSFDC appraises the loan proposals submitted by the SCAs/CAs. An appraisal report is prepared and submitted to the Project Clearance Committee (PCC) for concurrence. Step 7: The PCC reviews the appraisal report and, if found in order, recommends the proposals for sanction. Sanction Letters, known as Letters of Intent (LOIs), along with Terms & Conditions, are issued to the SCAs/RRBs/Public Sector Banks/NBFC-MFIs for acceptance. Step 8: After acceptance of the sanction terms and fulfillment of the Prudential Norms, funds are disbursed by NSFDC to the SCAs/RRBs/Public Sector Banks/NBFC-MFIs. The SCAs/RRBs/Public Sector Banks/NBFC-MFIs then disburse these funds to the beneficiaries. Step 9: Beneficiaries repay the loans as per the repayment schedule stipulated by the SCAs/CAs.

Sources & References

• Official scheme website ↗
• Source record ↗
• Information is summarised from official government sources. Verify all details on the official website before applying.