Education Loan Scheme of NMDFC
Students from India's six notified minority communities — Muslim, Christian, Sikh, Buddhist, Parsi, and Jain — can get education loans at very low interest rates of 3% (domestic) and 8% (abroad) through the NMDFC. Loans go up to ₹20 lakhs for India and ₹30 lakhs for abroad, with women under Credit Line-2 getting an additional 3% concession. Apply through your State Channelizing Agency (SCA) — find the list at nmdfc.org.
About This Scheme
Students from India's six notified minority communities — Muslim, Christian, Sikh, Buddhist, Parsi, and Jain — can get education loans at very low interest rates of 3% (domestic) and 8% (abroad) through the NMDFC. Loans go up to ₹20 lakhs for India and ₹30 lakhs for abroad, with women under Credit Line-2 getting an additional 3% concession. Apply through your State Channelizing Agency (SCA) — find the list at nmdfc.org.
Full official description
Under this scheme of NMDFC, loan is available for job oriented 'technical and professional courses' of durations not exceeding five years. Loan of upto Rs. 20 lacs for domestic courses & Rs. 30 lacs for courses abroad under Credit Line-1 and Credit line -2 is extended to beneficiaries belong to minority communities at 3% p.a. & 8% p.a respectively. Further, concession of 3% is extended to women beneficiaries under Credit Line-2.
Benefits
- Credit Line-1: loans up to ₹20 lakhs for domestic courses at 3% per annum interest
- Credit Line-2: loans up to ₹20 lakhs (India) or ₹30 lakhs (abroad) at 8% per annum
- Women under Credit Line-2 receive an additional 3% concession (effective rate: 5%)
- Covers tuition fees, hostel, books, equipment, and travel costs for abroad studies
Who Can Apply (Eligibility)
- Must be an Indian citizen belonging to one of six notified minority communities: Muslim, Christian, Sikh, Buddhist, Parsi, or Jain
- Credit Line-1: annual family income up to ₹3 lakhs
- Credit Line-2: annual family income up to ₹8 lakhs
- Must have secured merit-based admission to a recognized institution in India or abroad
- Course must be technical or professional, with a duration not exceeding 5 years
- Must not be receiving support for the same course from any other government scheme
- Must have a co-borrower (parent/guardian) with a verified income certificate
Exclusions
Other than Six Notified minority communities having annual family income of more than Rs. 3.00 Lakhs under credit line 1 and of more than Rs.8.00 Lakhs under credit line 2.
How to Apply
NMDFC implements its schemes & programs through State Channelizing Agencies (SCA list: www.nmdfc.org/SCA ) nominated by the respective State Governments & Banking Partners on refinance mode (Presently through Canara Bank & Punjab Grameen Bank).
Frequently Asked Questions
What is the objective of NMDFC’s Education Loan Scheme?
The Education Loan Scheme aims to provide concessional credit to minority students for pursuing professional and technical courses in India and abroad to promote employability and skill development.
What is the maximum amount of education loan that can be availed?
Under both Credit Lines, loans are available up to Rs. 20.00 lakh for professional or job-oriented degree courses in India and up to Rs. 30.00 lakh for courses abroad.
What are the interest rates applicable to Education Loans?
Under Credit Line–1, the interest rate is 3% per annum.
Under Credit Line–2, the rate is 8% per annum for male students and 5% per annum for female students.
When does the repayment period begin, and how long is it?
Repayment begins six months after completion of the course or upon obtaining employment, whichever is earlier, and must be completed within five years.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Duly filled Education Loan Application Form.
- Photographs of student and co-borrower (parent/guardian).
- Proof of Minority Status (certificate or self-declaration).
- Income Certificate of the family issued by competent authority.
- Proof of Residence: Aadhaar card, voter ID, ration card, or utility bill.
- Admission Letter from recognized college/university in India or abroad.
- Fee Structure or estimate from the educational institution.
- Mark Sheets/Certificates of qualifying examinations (Class X, XII, Graduation, etc.).
- Bank Account Proof: Aadhaar-linked bank passbook copy.
- Valid Passport and Visa (for studies abroad).
- Proof of age (DOB Certificate/10th Certificate).
- Affidavit/Undertaking confirming that no other education loan has been availed under a government scheme.
- PAN Card of student and co-borrower.