Education Loan Scheme (NSFDC)
The NSFDC Education Loan Scheme provides Scheduled Caste students with low-interest loans of up to ₹30 lakh for studies in India or ₹40 lakh for studies abroad, covering tuition, books, hostel, travel, and other educational costs. Interest rates start at 6% per annum for India and 7% for abroad, with a 0.5% rebate for women students. Apply by visiting the District Office of your State Channelizing Agency (SCA), not a bank directly.
About This Scheme
The NSFDC Education Loan Scheme provides Scheduled Caste students with low-interest loans of up to ₹30 lakh for studies in India or ₹40 lakh for studies abroad, covering tuition, books, hostel, travel, and other educational costs. Interest rates start at 6% per annum for India and 7% for abroad, with a 0.5% rebate for women students. Apply by visiting the District Office of your State Channelizing Agency (SCA), not a bank directly.
Full official description
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. Under this Scheme, the loan is provided for pursuing full-time Professional/Technical courses in recognized institutions as one-time assistance. The Educational Loan shall cover Admission Fee, Tuition Fee, Books, Stationery, Equipment, Examination Fee, Hostel and Mess Expenses, Insurance Premium for Policy for insuring loanees against loan in case of death or permanent disability, Travel Expenses/Passage Money including Visa Expenses for studying abroad, Caution Money, Development Fund, Clothing Allowance including weather protective clothing in extreme climate (in case of foreign study). Professional/Technical Courses Covered: Educational Loans shall be provided to eligible students for pursuing regular full-time Professional/Technical recognized courses approved by the Government in the following fields in India or abroad:
- 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 like Doctoral Studies leading to M.Phil/PhD from recognized institutions.
Benefits
- Up to ₹30 lakh for studies in India; up to ₹40 lakh for studies abroad (or 90% of course fee, whichever is less)
- 6% interest per annum for India studies (women: 5.5%); 7% for abroad studies (women: 6.5%)
- Repayment over 10 years for loans up to ₹10 lakh; 12 years for loans above ₹10 lakh
- Covers tuition, books, hostel, mess, exam fees, travel, caution money, and clothing allowance for abroad study
Who Can Apply (Eligibility)
- Must belong to the Scheduled Caste community
- Must be pursuing a full-time professional or technical course in a recognized institution (in India or abroad)
- Annual family income must be below ₹3 lakh (both rural and urban areas)
- This is one-time assistance only—cannot reapply after availing this loan
How to Apply
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.
Frequently Asked Questions
What is NSFDC?
NSFDC stands for National Scheduled Castes Finance and Development Corporation. It was set up by the Government of India under Ministry of Social Justice & Empowerment (MOSJ&E) on 8th February, 1989 under Section 25 of the Companies Act, 1956 as a company 'not for profit'. Now, it is Section 8 Company (not-for-profit) under campanies Act, 2013.
What is the Contact Address of NSFDC?
NSFDC has its Head Office at Delhi and its full address and contact number is :- National Scheduled Castes Finance and Development Corporation 14th Floor, SCOPE Minar, Core 1 & 2, Laxmi Nagar, Delhi ? 110 092 Tele: 011-22054392, 22054394, 22054396. Fax: 011-22054395 E-mail : support-nsfdc[@]nic[dot]in Website : www.nsfdc.nic.in It has three Liasion Centers at Mumbai, Kolkata, and Bengaluru.
What is the main objective of NSFDC?
NSFDC's main objective is to finance, facilitate and mobilize funds for the economic empowerment of persons belonging to the Scheduled Caste families having annual family income up to [?]3,00,000/-.
For which Educational courses, the Educational Loan is provided by NSFDC?
The Educational Loan is provided for the courses run by the recognized Educational Institutions. Presently, it is provided for pursuing following full time professional/technical courses:-
- Full time Professional/Technical courses in the fields of Engineering, Medical, Dental, Management, Information Technology, Hotel Management, Architecture, Physiotherapy, Bio-Technology, Law, Education, Journalism etc.
- Professional courses like CA/ICWA/CS/AMIE/FIA/IETE.
- Higher education like Doctoral Studies leading to M.Phil/PhD from recognized institutions.
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 premiums, travel expenses for studying abroad, caution money, development fund, clothing allowance, and other related expenses.
What is the maximum loan amount for studies in India?
The maximum loan amount for studies in India is [?]30,00,000/- or 90% of the course fee, whichever is less.
What is the maximum loan amount for studies abroad?
The maximum loan amount for studies abroad is [?]40,00,000/- or 90% of the course fee, whichever is less.
What is the rate of interest for loans taken for studies in India?
NSFDC charges 2% per annum from SCAs, which charge 6% per annum from beneficiaries. Women beneficiaries receive an interest rebate of 0.5%.
What is the rate of interest for loans taken for studies abroad?
NSFDC charges 3% per annum from SCAs, which charge 7% per annum from beneficiaries. Women beneficiaries receive an interest rebate of 0.5%.
What is the repayment period for loans up to ₹10,00,000/-?
The repayment period for loans up to [?]10,00,000/- is within 10 years.
What is the repayment period for loans above ₹10,00,000/-?
The repayment period for loans above [?]10,00,000/- is within 12 years.
Who is eligible to apply for this loan?
Students pursuing full-time professional or technical courses in recognized institutions in India or abroad who belong to Scheduled Castes and whose annual family income is less than [?]3,00,000/- are eligible.
How can I apply for the Education Loan Scheme?
Applicants should contact the District Office of the State Channelizing Agencies (SCAs) and submit their application in the prescribed NSFDC format.
Can the loan be used for studying part-time courses?
No, the loan is only available for full-time regular professional or technical courses.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Passport-size photograph
- Aadhaar Card
- Income certificate
- Caste certificate
- Residence proof
- Valid Passport (For Study Abroad)
- Valid Visa/Permit (If any for study abroad)
- Educational qualification certificates
- Copy of admission confirmation from an educational institute with fee and other charges payment schedule yearly
- Copy of Identity card issued by the Institute if admission has already taken
- Any other documents as required