Loan Based Schemes For Safai Karamchari - Education Loan Scheme (ELS)
₹10–20 lakh education loan at 4% · safai karamchari · India
An education loan scheme by the Ministry of Social Justice and Empowerment for Safai Karamcharis, manual scavengers, and their dependents who want to pursue higher education in India or abroad. Loans of up to ₹10 lakh (India) or ₹20 lakh (abroad) are available at a concessional 4% interest rate, with women getting an additional 0.5% rebate. Apply through the district offices of State Channelizing Agencies, Regional Rural Banks, or Public Sector Banks near you.
About This Scheme
An education loan scheme by the Ministry of Social Justice and Empowerment for Safai Karamcharis, manual scavengers, and their dependents who want to pursue higher education in India or abroad. Loans of up to ₹10 lakh (India) or ₹20 lakh (abroad) are available at a concessional 4% interest rate, with women getting an additional 0.5% rebate. Apply through the district offices of State Channelizing Agencies, Regional Rural Banks, or Public Sector Banks near you.
Full official description
An Education Loan scheme by the Ministry of Social justice and Empowerment for Safai Karamchari, Manual Scavengers, and their dependents aged 18 years and above.
Under this scheme, term loans are extended through State Channelising Agencies (SCA), Regional Rural Banks(RRBs) and Nationalised Banks to the target group.
- Educational Loan Upto 90% of the unit cost with a maximum unit cost of Rs.10.00 lacs for study in India and Rs.20.00 lacs to study abroad at interest rate of 4%
- 0.5% per annum rebate for women in case of study in India
- Promoters’ contribution: 10% to be arranged by the student/CAs
- Loans are extended through Channelizing Agencies (CAs) i.e. State Channelizing Agencies (SCAs), Regional Rural Banks (RRBs) and Public Sector Banks (PSBs) to the target group.
Note: The interest on Education Loan (for study in India) is reimbursable under the scheme of Ministry of Education , Government of India to the beneficiaries whose family annual income is upto 4.50 lac per annum .
Benefits
- Loan of up to 90% of total course cost (you arrange the remaining 10%)
- Up to ₹10 lakh for study in India at 4% interest per year
- Up to ₹20 lakh for study abroad at 4% interest per year
- Additional 0.5% interest rebate for women (for study in India)
- 1-year moratorium period before repayment begins
- Repayment over 5 years after course completion
- Covers tuition, books, exam fees, boarding, and insurance premium
💡 Why Startups Should Care
The 0.5% additional rebate for women studying in India makes this scheme especially favorable for female students from safai karamchari families, further reducing their education financing cost.
Who Can Apply (Eligibility)
- Safai Karamcharis (including waste pickers), identified manual scavengers, and their dependents
- Registered cooperative societies of Safai Karamcharis
- Legally constituted associations or firms promoted by the target group
- Must produce an occupation certificate from a recognized authority (Revenue Officer, Municipal Officer, Railway Officer, Gazetted Officer, or Gram Panchayat head)
- Manual scavengers listed in the government's official survey (under MS Act 2013) do not need a separate certificate
How to Apply
- Loan applications are submitted to district offices of SCAs of NSKFDC, RRBs, or Nationalised Banks.
- Submit Aadhaar, income certificate, and caste certificate.
- Provide bank account statement and educational certificates.
- The applications are appraised and forwarded for sanction.
- On approval, disbursement follows for course fees and related expenses.
Frequently Asked Questions
Who is eligible to apply for the Education Loan Scheme (ELS)?
Individuals belonging to the Safai Karamchari community (including waste pickers), identified manual scavengers, and their dependents aged 18 years and above are eligible. Co-operative societies or associations promoted by them can also apply.
What is the maximum amount that can be availed under this education loan?
- Up to ₹10.00 lakhs for studying in India- Up to ₹20.00 lakhs for studying abroad
What is the interest rate applicable under this scheme?
- 4% per annum for general applicants- 3.5% per annum for female applicants (0.5% rebate for women studying in India)
Is there any subsidy or reimbursement on the interest rate?
Yes, interest for loans taken for studying in India is reimbursable under the Ministry of Education if the beneficiary’s family income is ₹4.5 lakh or less per annum.
What does the education loan cover?
The loan may cover:
- Admission & Tuition Fees
- Books, stationery, instruments
- Examination fees
- Boarding and lodging expenses
- Insurance premium for study period
What is the repayment schedule and moratorium period for the loan?
Repayment Period: 5 years after completion of course Moratorium Period: 1 year Interest is payable quarterly from the time of loan disbursement.
What is the promoter’s contribution required?
Applicants are required to contribute 10% of the unit cost, while 90% is financed under the scheme.
How can one apply for the loan?
Applications can be submitted:
- To the District Offices of SCAs, RRBs, or Nationalised Banks- These are then appraised and sanctioned by NSKFDC following internal review and Board approval.
What documents are required for applying?
Indicative documents include:
- Aadhaar Card
- Income Certificate
- Caste Certificate
- Educational Qualification Certificates
- Bank Account Statement
- Proof of occupation or eligibility (e.g., certificate from municipal or panchayat officer)
Where can I track or get more information about my application?
You can:
- Visit the official NSKFDC portal:**** https://nskfdc.nic.in- Contact your local SCA/Bank Branch- Refer to their “Lending Policies & Guidelines (LPG)” for full process flow and norms
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Aadhaar card
- Income certificate
- Caste certificate
- Bank account statement
- Educational certificates