The Education Loan Scheme by the Delhi SC/ST/OBC/Minorities and Handicapped Financial Development Corporation Ltd. (DSFDC) is a government-backed initiative to support economically weaker students from marginalized backgrounds in pursuing professional and technical education.
This scheme offers need-based loans up to ₹7.5 lakh for studies in India and up to ₹15 lakh for studies abroad, helping students overcome financial barriers and achieve academic success.
Objective of the Scheme
The primary goal of the scheme is to promote higher education among students belonging to Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC), Minorities, and Persons with Disabilities (PwDs), by providing them with easy access to low-interest, need-based educational loans.
Key Features of the Delhi Education Loan Scheme
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Loan Amount for India: Up to ₹7,50,000/-
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Loan Amount for Abroad: Up to ₹15,00,000/-
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Promoter’s Contribution:
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Nil for loans up to ₹4,00,000/-
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5% (for studies in India) and 15% (for studies abroad) if loan > ₹4,00,000/-
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Repayment Period: Up to 10 years from the start of repayment or until employment, whichever is earlier
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Early Repayment Option: Available
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Processing Fee: ₹350/-
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Collateral Security: Required for loans above ₹2 lakh (guarantor/collateral/fixed deposit/property)
Benefits of the Scheme
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Supports higher education in India and abroad.
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It coverstuition fees, books, travel (if studying abroad), equipment, and more.
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Accepts a wide range of technical and professional courses.
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Enables social inclusion through education-based empowerment.
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Promotes self-reliance and employment opportunities for disadvantaged groups.
Eligibility Criteria
To be eligible for this scheme:
General Criteria:
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Must be a permanent resident of Delhi.
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Must belong to one of the following: SC/ST/OBC/Minority/PwD.
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Annual family income must be below ₹5,00,000/-.
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Must have secured admission to a recognized technical/professional institution in India or abroad.
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The institute must be recognized by UGC/AICTE/Government and should have been offering the course for at least 3 years.
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Course duration should not exceed 5 years.
Post-Sanction Terms:
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Must avoid unlawful activities or financial liabilities during loan tenure.
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Must strive to secure employment post-study and submit employment/income details to DSFDC.
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Should not take other government-funded education loans for the same purpose.
Application Process (Offline)
Step-by-Step Guide:
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Collect the Application Form
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Free of cost at DSFDC Branches:
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2-Battery Lane, Rajpur Road, Delhi-54
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A-33-38, B-Block, Lal Building, Opp. Police Station, Mangol Puri
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A-Block, 1st Floor, Bunker Vihar, Opp. Gagan Cinema, Nand Nagri
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Or download from the official DSFDC website
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Fill the Form
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Use black ink ball pen
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Attach passport-size photograph
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Self-attest required documents
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Submit the Application
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Submit at:
Deputy Manager (Education Loan)
Room No. 208, 2nd Floor, Ambedkar Bhawan, Sector-16, Rohini, Delhi-89 -
Carry original documents for verification
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Application Review & Loan Sanction
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On approval, you’ll receive a Sanction-cum-Agreement Letter.
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Complete formalities like guarantee deed or hypothecation deed as needed.
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Documents Required
Pre-Sanction (With Application):
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Aadhaar card of the applicant, co-borrower, and guarantor
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Income certificate (from SDM/Form 16 of co-borrower)
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The last qualifying exam mark sheet
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4 passport-size photos of the applicant, co-borrower, and guarantor
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Full-size photo (for PhD applicants)
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Caste certificate (SC/ST/OBC), minority affidavit, or disability certificate (PwD)
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Affidavit: No loan taken from any other govt. agency for the same purpose
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Scholarship/freeship/studentship confirmation (if applicable)
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Admission proof & course payment schedule
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Foreign exchange permit (if applicable)
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Bank statement (last 6 months) of borrower & co-borrower
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Signature identification from the bank
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Asset & liability statement
Post-Sanction Documents:
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Signed sanction agreement
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Guarantee deed
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Hypothecation deed
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Affidavit of legal heir
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Personal guarantee affidavits
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ECS mandate or Post-Dated Cheques (PDCs)
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Two ID-proof witnesses
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Previous year result
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Undertaking not to close bank account until repayment
Guarantor Documents:
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Aadhaar / Election ID / Passport
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Employer ID
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Latest pay slip and Form 16
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Age proof
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4 passport-size photos
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Affidavit of guarantee
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5 PDCs (if loan > ₹2 lakh)
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Undertaking or collateral documents:
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NSC/KVP/FDR with a lien in DSFDC’s favor
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Property papers with a full chain of documents
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Frequently Asked Questions (FAQs)
Q: Who can apply for this education loan in Delhi?
Students from SC, ST, OBC, Minority, or PwD categories who are permanent residents of Delhi.
Q: What is the income limit to apply?
Family income must be below ₹5,00,000 per year.
Q: What kind of colleges/institutes are eligible?
Only institutions recognized by UGC, AICTE, or relevant government authorities that have been offering the course for at least 3 years.
Q: What is the course duration limit?
The course should not exceed 5 years.
Q: How much loan can I get for studying in India?
Up to ₹7,50,000/-.
Q: What about studying abroad?
You can avail up to ₹15,00,000/- for international courses.
Q: Do I need to submit educational proof?
Yes, including mark sheets, admission letters, and payment schedules.
Q: How many photographs are needed?
4 passport-size photos of the applicant, co-borrower, and guarantor, plus one full-size (for PwD).
Q: Do I need to prove I haven’t taken another education loan?
Yes, an affidavit declaring no similar government funding must be submitted.
Q: Is the promoter’s contribution required?
Only if the loan amount exceeds ₹4 lakh (5% for India, 15% for abroad).
Q: What types of collateral/security are accepted?
Guarantor PDCs, NSC/KVP/FDR with a lien, or property documents.
