Credit Based Schemes For SC - Education Loan Scheme

Education loan scheme by the Ministry of Social justice and Empowerment for Scheduled Caste students pursuing full-time Professional/Technical courses in India or abroad.

This scheme is for providing financial assistance in pursuing full-time Professional/Technical courses.

For students within India

Loan Amount

Upto 90% of the Course Fee or Rs.10.00 Lakhs, whichever is less

Interest Rate per annum chargeable to

1. SCAs - 1.5%
2. Student- 4% (0.5% rebate for women beneficiaries)

For abroad students

Loan Amount

Upto 90% of the Course Fee or Rs.20.00 Lakhs, Whichever is less.

Interest Rate per annum chargeable to

1. SCAs - 1.5%
2. Student- 4% (0.5% rebate for women beneficiaries)

Benefits

For abroad students

Financial Assistance

Upto 90% of the Course Fee or Rs.10.00 Lakhs, Whichever is less with interest rate of 4% (3.5% for women beneficiaries).



For students within India

Financial Assistance

Upto 90% of the Course Fee or Rs.20.00 Lakhs, Whichever is less with interest rate of 4% (3.5% for women beneficiaries).



Repayment period

Up to 10 years (for loans up to Rs.7.50 lakh) & Up to 15 years (for loans above Rs7.50 lakh)



Moratorium Period

6 months after course completion or getting employment, whichever is earlier



Eligibility

The scheme is for students of the Scheduled Caste Category.

Application Process

Offline

The interested eligible person shall contact the nearest Channeling Agency (https://nsfdc.nic.in/channel-patrners/ ) .



Indicative Format:

 :https://nsfdc.nic.in/UploadedFiles/other/form/education-loan.pdf 




1. The Loan Applications Are To Be Submitted By The Eligible Target Group (Scheduled Castes Persons Having Annual Family Income Up To Rs. 3.00 Lakhs ) To The District Offices Of State Channelizing Agencies (SCAs).
2. 
   The District Offices Of SCAs/CAs Forward These Applications, After Scrutiny, To Their Head Offices. The Viability Of The Project Proposals Are Appraised By The SCAs And The Viable Projects Are Forwarded To NSFDC Along With Their Recommendations For Sanction.
3. Eligible Target Group Can Also Submit Their Loan Application To Other Channelising Agencies Of NSFDC Such As Regional Rural Banks/ Public Sector Banks/ NBFC-MFIs Etc. With Whom NSFDC Has Signed Memorandum Of Agreements.
4. 
   The Said Project Proposals Are Appraised By The Project And Banking Desk. The Appraisal Report Is Submitted To The Project Clearance Committee (PCC) For Their Concurrence.
5. The Proposals Which Are Found To Be In Order Are Recommended For Sanction. After Sanction, Sanction Letters Called As Letter Of Intents(LOIs), Along With Terms & Conditions Are Issued To The SCAs/ RRBs/ Public Sector Banks/ NBFC-MFIs Etc. For Acceptance.
6. 
   After Acceptance Of The Terms And Conditions Of The Sanction And Fulfillment Of Prudential Norms, As Applicable, Funds Are Disbursed To The SCAs/ RRBs/ Nationalized Bank For Onward Disbursement To The Beneficiaries.
7. The Disbursement Of Funds Is Made By NSFDC On Receipt Of Demand From The SCAs/ RRBs/ Public Sector Banks/ NBFC MFIs. The Loans Are To Be Repaid By The Beneficiaries As Per The Repayment Schedule Stipulated By The SCAs/CAs




Documents Required

The applicants are required to submit an application in NSFDC's format with details of business and copies of caste, income and experience etc. at the channelising agency office.



Indicative Documents

1. Aadhaar Card
2. Income certificate
3. Caste certificate
4. Bank account statement