Education Loan Scheme of NMDFC

Description
Under this scheme of NMDFC, loan is available for job oriented 'technical and professional courses' of durations not exceeding five years. Loan of upto Rs. 20 lacs for domestic courses & Rs. 30 lacs for courses abroad under Credit Line-1 and Credit line -2 is extended to beneficiaries belong to minority communities at 3% p.a. & 8% p.a respectively. Further, concession of 3% is extended to women beneficiaries under Credit Line-2.

Exclusions
• Other than Six Notified minority communities having annual family income of more than Rs. 3.00 Lakhs under credit line 1 and of more than Rs.8.00 Lakhs under credit line 2.
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Benefits
• Concessional Credit to the beneficiaries among minority communities.

Eligibility Criteria
1. a) The applicant must be Indian and belong to one of the six notified minority communities (Muslim, Christian, Sikh, Buddhist, Parsi, Jain).
2. b) The annual family income limit is:
3. Up to Rs. 3.00 lakh per annum under Credit Line-1.
4. Up to Rs. 8.00 lakh per annum under Credit Line–2.
5. c) The applicant must have secured admission to a recognized institution in India or abroad through a merit-based selection or entrance test.
6. d) The course must be technical or professional, with a duration not exceeding 5 years.
7. e) The applicant must not have availed financial support for the same course under any other Government scheme.
8. f) The loan is admissible for tuition fees, hostel charges, books, equipment, and travel (for abroad studies).
9. g) The applicant must have a co-borrower (parent/guardian) with a verified income certificate.
10. h) Preference shall be given to female students and candidates from economically weaker sections.
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Application Process
Step 1: NMDFC implements its schemes & programs through State Channelizing Agencies (SCA list: www.nmdfc.org/SCA ) nominated by the respective State Governments & Banking Partners on refinance mode (Presently through Canara Bank & Punjab Grameen Bank).
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NMDFC implements its schemes & programs through State Channelizing Agencies (SCA list: www.nmdfc.org/SCA ) nominated by the respective State Governments & Banking Partners on refinance mode (Presently through Canara Bank & Punjab Grameen Bank).

Required Documents
• Duly filled Education Loan Application Form.
• Photographs of student and co-borrower (parent/guardian).
• Proof of Minority Status (certificate or self-declaration).
• Income Certificate of the family issued by competent authority.
• Proof of Residence: Aadhaar card, voter ID, ration card, or utility bill.
• Admission Letter from recognized college/university in India or abroad.
• Fee Structure or estimate from the educational institution.
• Mark Sheets/Certificates of qualifying examinations (Class X, XII, Graduation, etc.).
• Bank Account Proof: Aadhaar-linked bank passbook copy.
• Valid Passport and Visa (for studies abroad).
• Proof of age (DOB Certificate/10th Certificate).
• Affidavit/Undertaking confirming that no other education loan has been availed under a government scheme.
• PAN Card of student and co-borrower.

Frequently Asked Questions
Q: What is the objective of NMDFC’s Education Loan Scheme?
A: The Education Loan Scheme aims to provide concessional credit to minority students for pursuing professional and technical courses in India and abroad to promote employability and skill development.
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Q: What is the maximum amount of education loan that can be availed?
A: Under both Credit Lines, loans are available up to Rs. 20.00 lakh for professional or job-oriented degree courses in India and up to Rs. 30.00 lakh for courses abroad.
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Q: What are the interest rates applicable to Education Loans?
A: Under Credit Line–1, the interest rate is 3% per annum.
Under Credit Line–2, the rate is 8% per annum for male students and 5% per annum for female students.
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Q: When does the repayment period begin, and how long is it?
A: Repayment begins six months after completion of the course or upon obtaining employment, whichever is earlier, and must be completed within five years.
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