Education Loan Scheme

Description
A scheme named " Education Loan Scheme " by National Scheduled Castes Finance and Development Corporation NSFDC under the M/o Social Justice and Empowerment provides loans to students from Scheduled Castes who are pursuing full-time professional or technical courses in recognized institutions. The objective of the scheme is to extend Education Loans to the students of Backward Classes for pursuing professional/technical education at the graduate and higher levels and for pursuing vocational Courses. All professional and technical courses at the graduate and higher levels are approved by the appropriate authority and vocational courses. Educational Loan shall be provided to eligible students for pursuing regular full time Professional / Technical recognized courses approved by the Government in the following fields in India or abroad : 1. Engineering Diploma/ B.Tech /B.E, M.Tech/M.E. 1. Architecture B.Arch/M.Arch 1. Medical MBBS/MD/MS 1. Biotechnology/Microbiology/Clinical Technology Diploma/Degree 1. Pharmacy B.Pharma/M.Pharma 1. Dental BDS/MDS 1. Physiotherapy B.Sc./M.Sc. 1. Pathology B.Sc/M.Sc. 1. Nursing B.Sc./M.Sc. 1. Information Technology BCA/MCA 1. Management BBA/MBA 1. Hotel Management & Catering Technology Diploma /Graduation/Post Graduation 1. Law LLB/LLM 1. Education CT/NTT/B.Ed/M.Ed 1. Education CT/NTT/B.Ed/M.Ed 1. Physical Education C.PEd./B.PEd/ M.PEd 1. Journalism & Mass Communication Graduation/Post Graduation 1. Geriatric Care Diploma/Post Graduate Diploma 1. Midwifery Diploma 1. Laboratory Technician Diploma 1. Chartered Accountancy CA 1. Cost Accountancy ICWA 1. Company Secretaryship CS 1. Actuarial Sciences Graduation/ Post Graduation/FIA 1. Associate Member of Institute of Engineers AMIE and Institute of Electronics & Telecommunication 1. Higher education like Doctoral Studies leading to M.Phil/PhD from recognized institutions.

Exclusions
• The educational loan cannot be provided for the completed course.

Benefits
• **Maximum Loan Limit:** Up to ₹30 lakhs (for studies in India) and upto ₹40 lakhs (for studies abroad) or 90% of course fee, whichever is less. 1. **Rate of Interest:**
• For studies in India, upto ₹30 lakhs or 90% of course fee, whichever is less. The rate of interest for male candidates is 6% whereas for female candidates it is 5.5%. The repayment period must be within 10 years for loan upto Rs.10 lakh.
• For studies abroad, upto ₹40 lakhs, or 90% of course fee, whichever is less. The rate of interest for male candidates is 7% whereas for female candidates it is 6.5%. The repayment period must be within 12 years for loan upto ₹10 lakhs.
• The Moratorium Period is 6 months after course completion or getting employment, whichever is earlier in both the cases.

Eligibility Criteria
1. The beneficiary (ies) should be from the Scheduled Caste Community.
2. Individuals, Partnership Firms, and Co-operative Societies can undertake income-generating activities.
3. The annual family income of each member/applicant should not exceed Rs.3.00 lakh.
4. Applicants must apply for financial assistance from NSFDC through the concerned State Channelizing Agencies (SCAs)/Channelizing Agencies (CAs).
5. Annual family income of the applicants should be within Rs.3.00 lakhs (for both rural and urban areas w.e.f. 08.03.2018) under Credit Based Schemes.
6. There is no income criterion under Skill Development Training Programmes.

Required Documents
• Proof of Identity (Aadhaar Card)
• Passport Sized Photograph
• Proof of Educational Qualification (Passing Certificate / Marksheet)
• Caste Certificate (issued by the relevant authority of District Administration).
• Annual Family Income Certificate on self-certification of the beneficiaries with the endorsement of the same by any Gazetted Officer notified by the State/Central government.
• In the case of a loan being applied at the Bank (Channel Partner), Self-Certification assessed and endorsed by the Branch Manager can be treated as valid proof.
• Bank Details of the Applicant.

Frequently Asked Questions
Q: What Is The Full-Form Of NBCFDC?
A: The full-form of NBCFDC is "National Backward Classes Finance And Development Corporation".

Q: Which Ministry/Department Manages This Scheme?
A: This scheme is managed by the Ministry of Social Justice & Empowerment.

Q: For What Purposes Can The Amount Of The Loan Be Utilized?
A: The amount of the loan can be utilized by the students of Backward Classes for pursuing professional/technical education at the graduate and higher levels and for pursuing vocational Courses.

Q: What Kinds Of Expenses Are Covered In This Scheme?
A: The following expenses are covered: Admission Fee & Tuition Fee; Books; Stationery & other instruments required for the course; examination fee; boarding & lodging expenses; insurance premium for policy during the loan period.

Q: What Percentage Of The Expenditure On The Course Will Be Borne By The Student/SCA? Is There An Upper Ceiling?
A: 90% of the expenditure of the course is subject to a maximum loan limit of [?]15,00,000 per student (For study in India), the balance will be borne by the student/SCA.

Q: What Is The Meaning Of SCA?
A: SCA means "State Channelizing Agency".