The Education Loan Scheme by NSFDC (National Scheduled Castes Finance and Development Corporation), under the Ministry of Social Justice and Empowerment, is a flagship initiative aimed at empowering Scheduled Caste (SC) students with financial support to pursue professional and technical education in India or abroad.

This scheme offers up to ₹30 lakh for studying in India and up to ₹40 lakh for studying abroad, covering tuition fees, hostel expenses, travel, and other academic-related costs at a subsidized interest rate.

Key Benefits of NSFDC SC Student Loan

• Loan Limit:

  • Up to ₹30 lakh for studies in India

  • Up to ₹40 lakh for studies abroad

  • Covers 90% of the course fee, whichever is lower

• Interest Rate:

  • India: 6% per annum (0.5% rebate for women)

  • Abroad: 7% per annum (0.5% rebate for women)
    (NSFDC lends to SCAs at 2%/3%; SCA lend to beneficiaries at 6%/7% respectively)

• Repayment Period:

  • Loan up to ₹10 lakh: Repay within 10 years

  • Loan above ₹10 lakh: Repay within 12 years

• Expenses Covered:

  • Admission & tuition fees

  • Books, stationery, lab equipment

  • Hostel and mess charges

  • Insurance premium (loan protection)

  • Visa, travel, passage money (for foreign studies)

  • Development fund, caution money, and clothing allowance

Eligible Courses (India or Abroad)

This scheme covers full-time professional and technical courses such as:

• Engineering (Diploma, B.Tech, M.Tech)

• Architecture (B.Arch, M.Arch)

• Medical & Allied Sciences (MBBS, BDS, B.Sc. Nursing, Physiotherapy, etc.)

• IT & Management (BCA, MCA, BBA, MBA)

• Law, Education, Physical Education

• Hospitality, Mass Communication

• Chartered Accountancy, Company Secretary, Cost Accountancy

• Ph.D., M.Phil., AMIE, and other government-approved degrees

Other Requirements

To avail of the loan, applicants must:

• Belong to the Scheduled Caste (SC) community

• Be pursuing a full-time professional or technical course

• Be admitted into a recognized institution in India or abroad

• Have a family income of less than ₹3,00,000 per annum (rural or urban)

• Not have previously received an NSFDC loan for the same course

• Apply for the loan as one-time financial assistance

How to Apply (Offline Mode)

Here check how can you apply for NSFDC Education Loan Scheme 2025 and get up to ₹40 lakh for SC students pursuing professional courses in India or abroad!

1. Visit your District SCA Office
   Locate your State Channelizing Agency (SCA) responsible for NSFDC loan schemes.

2. Collect & Submit Application Form
   Fill out the official NSFDC Education Loan application form and attach all required documents.

3. Verification by District Office
   The SCA verifies eligibility and forwards the application to its Head Office.

4. Appraisal & Recommendation
   The Head Office evaluates and recommends the proposal to NSFDC.

5. Appraisal by NSFDC
   NSFDC’s Project & Banking Desk reviews the proposal and submits it to the Project Clearance Committee (PCC).

6. Sanction Letter Issued
   Upon approval, a Letter of Intent (LOI) is sent to SCAs/Banks with loan terms and conditions.

7. Loan Disbursement
   Funds are transferred by NSFDC to SCAs/Banks, which then disburse the amount to the student/beneficiary.

8. Loan Repayment
   Beneficiary starts repayment as per the schedule provided by the SCA/Bank after course completion.

Necessary Documents

• Recent passport-size photograph

• Aadhaar card

• Caste certificate (Scheduled Caste only)

• Income certificate (under ₹3 lakh/annum)

• Residential proof

• Educational qualification certificates

• Admission confirmation with fee structure from the institution

• Student ID card (if already enrolled)

• Passport & Visa (for study abroad)

• Any additional documents as required by the SCA/Bank

Frequently Asked Questions (FAQs)

Q: What is NSFDC?
A: The National Scheduled Castes Finance and Development Corporation (NSFDC) is a government organization under the Ministry of Social Justice and Empowerment, providing concessional financial assistance to SC individuals.

Q: Who is eligible for an NSFDC Education Loan?
A: SC students enrolled in recognized full-time professional or technical courses in India or abroad, with annual family income below ₹3 lakh.

Q: What is the maximum loan amount available?
A: ₹30 lakh for study in India; ₹40 lakh for study abroad (or 90% of course fee, whichever is lower).

Q: What is the interest rate?
A:

• India: 6% per annum (5.5% for women)

• Abroad: 7% per annum (6.5% for women)

Q: What is the repayment period for the loan?
A:

• Up to ₹10 lakh: 10 years

• Above ₹10 lakh: 12 years

Q: Can I apply for part-time or correspondence courses?
A: No. The scheme only supports regular full-time professional or technical courses.

Q: How can I apply for this loan?
A: Submit your application to the District Office of your SCA, along with the required documents.

Q: What expenses does the loan cover?
A: Tuition, hostel, books, exam fees, insurance, travel (for foreign study), and other course-related costs.

Q: Where can I find the official application form?
A: From your nearest SCA District Office or by visiting the NSFDC official website.

Sources and References

• ELS Scheme Guidelines

• Prescribed Application Form

• NSFDC FAQs