The Education Loan Scheme by the National Scheduled Castes Finance and Development Corporation (NSFDC) under the Ministry of Social Justice and Empowerment aims to empower Scheduled Caste (SC) students by providing affordable financial support for pursuing full-time professional and technical courses.
Whether it’s higher education in India or abroad, this scheme helps cover up to 90% of the course fee, promoting equal opportunities for deserving students from marginalized communities.
Key Benefits of the Education Loan Scheme
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Maximum Loan Limit:
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₹30 Lakhs for studies in India
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₹40 Lakhs for studies abroad
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Or 90% of the course fee, whichever is lower
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Interest Rate:
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For studies in India:
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Male students: 6% per annum
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Female students: 5.5% per annum
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Repayment Period: Up to 10 years (loan up to ₹10 Lakhs)
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For studies abroad:
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Male students: 7% per annum
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Female students: 6.5% per annum
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Repayment Period: Up to 12 years (loan up to ₹10 Lakhs)
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Moratorium Period:
6 months after course completion or securing employment—whichever is earlier -
Coverage Includes:
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Tuition fees
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Examination and registration charges
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Library, lab, hostel, and laptop charges
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Travel and insurance (for foreign studies)
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Eligible Courses Covered
The scheme covers regular full-time courses approved by the government in the following fields:
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Engineering & Technology: Diploma/B.Tech/M.Tech/AMIE
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Medical & Health Sciences: MBBS, MD, BDS, Nursing, Physiotherapy, Midwifery, Pathology, etc.
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Pharmacy & Biotechnology: B.Pharm, M.Pharm, Microbiology, Clinical Technology
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Management & IT: BBA, MBA, BCA, MCA
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Law & Education: LLB, LLM, B.Ed, M.Ed
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Hotel Management, Mass Communication, Physical Education
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Finance & Commerce: CA, ICWA, CS, Actuarial Sciences
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Higher Research: M.Phil/PhD from recognized institutions
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Vocational Training & Geriatric Care Programs
Eligibility Criteria
To apply under the Education Loan Scheme:
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Must belong to the Scheduled Caste (SC) community
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Must be pursuing full-time technical/professional courses from a recognized institution (in India or abroad)
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Annual family income must not exceed ₹3.00 lakh (both rural and urban areas)
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Applications must be routed through the respective State Channelizing Agencies (SCAs) or Channelizing Agencies (CAs)
Exclusions
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Loans cannot be availed for courses already completed
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Skill Development Programmes are covered under different criteria and don’t follow the income cap
Application Process
Online Mode
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Visit the official NSFDC portal: https://nsfdc.nic.in
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Select the Education Loan Scheme
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Fill in the application form with accurate details
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Upload the required documents
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Submit the form and note the application reference number
Offline Mode
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Approach the nearest State Channelizing Agency (SCA) or approved Channel Partner Bank.
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Collect the application form
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Fill and submit the form along with the necessary documents
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Receiveacknowledgmentt and wait for further verification
Documents Required
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Aadhaar Card (Proof of Identity)
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Passport-size Photograph
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Educational Certificates/Mark Sheets
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Caste Certificate (from District Authority)
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Annual Family Income Certificate
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Self-certification with attestation from a Gazetted Officer or Branch Manager
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Bank Passbook or Account Details
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Offer Letter/Admission Proof from the institution
Frequently Asked Questions (FAQs)
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Q: What is the full form of NSFDC?
A: National Scheduled Castes Finance and Development Corporation -
Q: Which Ministry oversees this scheme?
A: Ministry of Social Justice and Empowerment -
Q: What expenses are covered under this education loan?
A: Tuition, hostel, exam fees, study materials, travel (for abroad), insurance, etc. -
Q: What is the maximum course coverage?
A: Up to 90% of the total course cost or a maximum of ₹30 lakhs (India) / ₹40 lakhs (abroad) -
Q: What is an SCA?
A: State Channelizing Agency – they help implement NSFDC schemes at the state level.
