The Education Loan Scheme (ELS) under the Ministry of Social Justice and Empowerment, Government of India, is specially designed to uplift the educational prospects of Safai Karamcharis, Manual Scavengers, Waste Pickers, and their dependents aged 18 years and above. The scheme provides subsidized education loans for technical and professional studies in India and abroad.
Implemented through State Channelising Agencies (SCAs), Regional Rural Banks (RRBs), and Public Sector Banks (PSBs), this scheme ensures financial inclusion for marginalized communities seeking higher education.
Key Benefits of the NSKFDC Loan Scheme
Loan Amount
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Up to ₹10 lakhs for studies within India
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Up to ₹20 lakhs for studies abroad
Subsidized Interest
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4% annual interest rate
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0.5% rebate for female beneficiaries (for studies in India)
Repayment & Moratorium
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1-year moratorium period after course completion
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5-year repayment window post-moratorium
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Interest payable every quarter from the disbursement date
Coverage Includes
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Admission and tuition fees
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Books, stationery, course-related instruments
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Examination fees
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Boarding and lodging expenses
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Insurance premium (if applicable)
Who Are Eligible
The following individuals/entities are eligible to apply:
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Safai Karamcharis, Waste Pickers, and identified Manual Scavengers and their dependents
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Registered cooperative societies or legally constituted firms promoted by the target group
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Applicants must produce a certificate of occupation from a designated authority:
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Local Revenue/Municipal Officer, Cantonment Executive Officer, Railway Officer
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Gazetted Head of Govt. Departments (Schools, Health, Forest, Education, etc.)
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Elected Members of Municipal Body / Pradhan / Sarpanch
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Regional Managers of RRBs or PSBs
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Note: As per the MS Act, 2013, applicants listed in the final state list of identified Manual Scavengers do not require an occupation certificate.
How to Apply Online
Here check the step-by-step process to apply for up to ₹20 lakh education loan under the Ministry of Social Justice’s scheme for Safai Karamcharis & dependents. Low interest, easy terms;
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Submission of Loan Application => Applicants must submit loan proposals to the district offices of SCAs, RRBs, or Nationalised Banks affiliated with NSKFDC.
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Project Appraisal => The proposal is forwarded to the head office of the respective channel partner for detailed appraisal.
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Approval Process => Upon evaluation, the recommendation is sent to NSKFDC. The Project Appraisal Committee reviews it and places it before the Board of Directors for final approval.
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Sanction & Disbursement => Once approved, a sanction letter is issued by the concerned bank or agency. After acceptance of terms and submission of required documents, funds are released to the beneficiary.
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Loan Release by NSKFDC => Final disbursement is done based on demand raised by SCAs/RRBs/PSBs, in line with the Lending Policies & Guidelines (LPG) of NSKFDC.
Necessary Documents
Prepare the following documents before applying:
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The Aadhaar Card of the applicant
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Valid Income Certificate
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Caste Certificate (if applicable)
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Recent Bank Account Statement
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Latest Educational Certificates
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Certificate of Occupation (if required)
Important Notes
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Promoter’s Contribution: 10% of the unit cost must be arranged by the student or through the channel partner.
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The interest on loans (for study in India) is reimbursable for beneficiaries with family income up to ₹4.5 lakh per annum, under the Ministry of Education guidelines.
Frequently Asked Questions (FAQs)
Q: Who can apply for the Education Loan Scheme under NSKFDC?
A: The scheme is open to Safai Karamcharis, Waste Pickers, Manual Scavengers, and their dependents aged 18 and above. Registered cooperatives and firms promoted by this target group can also apply.
Q: What is the maximum loan amount available under this scheme?
A: The maximum loan is ₹10 lakhs for education in India and ₹20 lakhs for studies abroad.
Q: What is the interest rate charged on the education loan?
A: The loan carries an annual interest rate of 4%, with a 0.5% rebate for female students studying in India.
Q: What expenses are covered under this education loan?
A: The loan covers tuition fees, admission charges, books, stationery, boarding & lodging, examination fees, insurance premiums, and course-related materials.
Q: Is there any relaxation for women under this scheme?
A: Yes, female applicants are eligible for a 0.5% interest rebate on loans for study in India.
Q: What is the repayment period for the education loan?
A: The repayment period is 5 years after the 1-year moratorium (grace period) post-course completion.
Q: Can multiple members from the same family apply for the loan?
A: The scheme generally supports individual applications, and multiple applications from the same family may be subject to scrutiny based on eligibility and funding availability.
