Loan Based Schemes For Safai Karamchari - Education Loan
Department of Social Justice & Empowerment
Last updated:
Key dates and updates
Important milestones for this scheme. Use official links to verify before you apply.
| Milestone | Date |
|---|---|
| Scheme launch |
Overview
The scheme aims to provide education loans to the students from the community of safai karamcharis\manual scavengers & their dependents for pursuing higher education.
Details
An Education Loan EL scheme has been launched by the Ministry of Social Justice and Empowerment, Government of India. The scheme aims to provide education loans to the students from the community of safai karamcharis\manual scavengers & their dependents for pursuing higher education. Education loan to the students from the community of Safai Karamcharis\Manual Scavengers & their dependents for pursuing - Professional or Technical Education of Graduation or higher levels in Medical, Engineering, Management, Law, IT/Computers. - Graduation courses in all disciplines i.e. B.A., B.Sc; & B.Com etc . - Sanitary Inspector & other similar job oriented courses having minimum period of one year, Diploma in Physiotherapy, Pathology, Nursing, Hotel Management & Tourism, Journalism & Mass Communication, Geriatric Care. - Academic/Professional courses at Graduate & Post Graduate level like Bachelor of Education, Ph.D, Language courses, BCA, MCA etc; from authorized/recognized Institutes/Universities .
Exclusions
• <br>
Definitions
Target group
Safai Karamcharis (including Wastepickers), Manual Scavengers and their dependants constitute the target group.
(Source: Scheme Guideline)
Safai Karamchari
Safai Karamchari” means a person, including his/her dependents, engaged in or employed for any sanitation work and includes waste pickers, but excludes domestic worker and manual scavengers.
(Source: Scheme Guideline)
Manual Scavengers
A person engaged or employed by an individual or a local authority or an agency or a contractor for manually cleaning, carrying, disposing of, or otherwise handling in any manner, human excreta in an insanitary latrine or in an open drain or pit into which the human excreta from the insanitary latrines is disposed of, or on railway track or in such other spaces or premises, as the Central Government or a State Government may notify, before the excreta fully decomposes in such a manner as may be prescribed, and the expression ‘’Manual Scavenging” shall be construed accordingly and a) “engaged or employed’’ means being engaged or employed on a regular or contract basis; b) a person engaged or employed to clean excreta with the help of such devices and using such protective gear, as the Central Government may notify in this behalf, shall not be deemed to be a ‘manual scavenger’.
(Source: Scheme Guideline)
Dependent
“Dependent” in relation to a Safai Karamcharis (including Waste pickers), Manual Scavengers includes a member of his family, who is dependent on him/her and has attained the age of 18 years & above for the purpose of financial assistance and for Skill Development Training Program the age limit is 18 years to 45 years.
(Source: Scheme Guideline)
Benefits
• Note: The interest on an education loan (for study in India) is reimbursable under the scheme of Ministry of Education , Government of India to the beneficiaries whose family annual income is upto 4.50 lac per annum.
• 5 years after the co-termination of the course. However, the interest is payable on a quarterly basis from the disbursement of the loan.
• 1 Year
• Education loan may cover the following:-
• Admission Fees & Tuition Fee.
• Books, stationery, and other instruments required for the course.
• Examination Fee.
• Boarding and lodging expenses.
• Insurance premium for the policy.
Eligibility Criteria
1. > **The following person(s)/entities shall be considered eligible for availing of financial assistance under the various schemes of NSKFDC:-**
2. Safai Karamcharis (including Waste pickers), identified Manual Scavengers and their dependents.
3. Registered co-operative societies of the target group.
4. Legally constituted association/firm promoted by the target group, and
5. Persons, who produce a certificate from local Revenue Officer/local Municipal Officer/Cantonment Executive Officer/ Railway Officer, Head of the Govt. Departments (i.e. Schools, Colleges, Forest, Health, Education, Animal Husbandry) having rank not less than Gazetted Officer, Elected Members of the Municipal Body, Pradhan of Gram Panchayats, and Regional Managers of Regional Rural Banks (RRBs)/Public Sector Banks (PSBs). However, under the MS Act, 2013, a person identified as a Manual Scavenger in a survey, need not provide any certificate once his/her name appeared in the final list of Manual Scavengers prepared by State Governments/Union Territory Administration .
6. Mukhia/ Sarpanch/ President or any other authority equivalent to Pradhan of Gram Panchayat for the issue of Occupation Certificate to Safai Karamcharis/ dependents; and In case of Municipal Bodies without Gazetted Officers, the head of such Municipal Bodies, maybe the Competent Authority.
7. <br>
Application Process
Step 1: Loan applications are submitted by the applicants to the district offices of SCAs of NSKFDC of RRBs and Nationalised Banks.
These applications are then sent to the head offices where the project proposal is appraised by SCA/RRBs/Nationalised Banks…
Offline — https://nskfdc.nic.in/en/content/home/list-channelizing-agencies
Loan applications are submitted by the applicants to the district offices of SCAs of NSKFDC of RRBs and Nationalised Banks.
These applications are then sent to the head offices where the project proposal is appraised by SCA/RRBs/Nationalised Banks and the projects are sent back to NSKFDC along with recommendations.
The Project Appraisal Committee of NSKFDC then appraises the proposals and after finding them in order places it in front of their board of directors for their approval.
Once the board of directors approves the project, the letter of sanction is issued by SCAs/ RRBs/Nationalised Banks.
Once all the terms and conditions have been accepted, the necessary documents and funds are then released to the concerned beneficiaries.
NSKFDC released the funds with the receipt of demand being made from the SCAs/ RRBs/Nationalised Banks after taking into consideration all the parameters of release as per the Lending Policies & Guidelines (LPG) of NSKFDC
Required Documents
• Aadhaar Card
• Income certificate
• Caste certificate
• Bank account statement
• Educational Certificates
Frequently Asked Questions
Q: Who is eligible to apply for the Education Loan Scheme (ELS)?
A: Individuals belonging to the Safai Karamchari community (including waste pickers), identified manual scavengers, and their dependents aged **18 years and above** are eligible. Co-operative societies or associations promoted by them can also apply.
Q: What is the maximum amount that can be availed under this education loan?
A: - Up to **₹10,00,000** for studying in India- Up to **₹20,00,000** for studying abroad
<br>
Q: What is the interest rate applicable under this scheme?
A: - 2%: 6% (0.5% p.a. rebate for women candidates for study in India)
- 3% p.a: 7% p.a.(0.5% p.a. rebate for women candidates for study in India)
<br>
Q: Is there any subsidy or reimbursement on the interest rate?
A: Yes, **interest for loans taken for studying in India** is reimbursable under the Ministry of Education if the beneficiary’s f**amily income is ₹4,50,000 or less** per annum.
<br>
Q: What does the education loan cover?
A: **The loan may cover:**
- Admission & Tuition Fees
- Books, stationery, instruments
- Examination fees
- Boarding and lodging expenses
- Insurance premium for study period
<br>
Q: What is the repayment schedule and moratorium period for the loan?
A: **Repayment Period:** 5 years after completion of course
**Moratorium Period:** 1 year
**Interest** is payable **quarterly** from the time of loan disbursement.
Q: What is the promoter’s contribution required?
A: Applicants are required to contribute **10% of the unit cost**, while **90% is financed under the scheme**.
Q: How can one apply for the loan?
A: **Applications can be submitted:**
- To the **District Offices** of **SCAs**, **RRBs**, or **Nationalised Banks**- These are then appraised and sanctioned by NSKFDC following internal review and Board approval.
Q: What documents are required for applying?
A: **Indicative documents include:**
- Aadhaar Card
- Income Certificate
- Caste Certificate
- Educational Qualification Certificates
- Bank Account Statement
- Proof of occupation or eligibility (e.g., certificate from municipal or panchayat officer)
<br>
Q: Where can I track or get more information about my application?
A: You can:
- Visit the official **NSKFDC** portal:**** [**https://nskfdc.nic.in**](https://nskfdc.nic.in)- Contact your local **SCA**/Bank Branch- Refer to their “Lending Policies & Guidelines (**LPG**)” for full process flow and norms
Eligibility Criteria
> **The following person(s)/entities shall be considered eligible for availing of financial assistance under the various schemes of NSKFDC:-**
Safai Karamcharis (including Waste pickers), identified Manual Scavengers and their dependents.
Registered co-operative societies of the target group.
Legally constituted association/firm promoted by the target group, and
Persons, who produce a certificate from local Revenue Officer/local Municipal Officer/Cantonment Executive Officer/ Railway Officer, Head of the Govt. Departments (i.e. Schools, Colleges, Forest, Health, Education, Animal Husbandry) having rank not less than Gazetted Officer, Elected Members of the Municipal Body, Pradhan of Gram Panchayats, and Regional Managers of Regional Rural Banks (RRBs)/Public Sector Banks (PSBs). However, under the MS Act, 2013, a person identified as a Manual Scavenger in a survey, need not provide any certificate once his/her name appeared in the final list of Manual Scavengers prepared by State Governments/Union Territory Administration .
Mukhia/ Sarpanch/ President or any other authority equivalent to Pradhan of Gram Panchayat for the issue of Occupation Certificate to Safai Karamcharis/ dependents; and In case of Municipal Bodies without Gazetted Officers, the head of such Municipal Bodies, maybe the Competent Authority.
<br>
Benefits
Note: The interest on an education loan (for study in India) is reimbursable under the scheme of Ministry of Education , Government of India to the beneficiaries whose family annual income is upto 4.50 lac per annum.
5 years after the co-termination of the course. However, the interest is payable on a quarterly basis from the disbursement of the loan.
1 Year
Education loan may cover the following:-
Admission Fees & Tuition Fee.
Books, stationery, and other instruments required for the course.
Examination Fee.
Boarding and lodging expenses.
Insurance premium for the policy.
Required Documents
| # | Document |
|---|---|
| 1 | Aadhaar Card |
| 2 | Income certificate |
| 3 | Caste certificate |
| 4 | Bank account statement |
| 5 | Educational Certificates |
How to Apply
Loan applications are submitted by the applicants to the district offices of SCAs of NSKFDC of RRBs and Nationalised Banks. These applications are then sent to the head offices where the project proposal is appraised by SCA/RRBs/Nationalised Banks…
Offline — https://nskfdc.nic.in/en/content/home/list-channelizing-agencies Loan applications are submitted by the applicants to the district offices of SCAs of NSKFDC of RRBs and Nationalised Banks. These applications are then sent to the head offices where the project proposal is appraised by SCA/RRBs/Nationalised Banks and the projects are sent back to NSKFDC along with recommendations. The Project Appraisal Committee of NSKFDC then appraises the proposals and after finding them in order places it in front of their board of directors for their approval. Once the board of directors approves the project, the letter of sanction is issued by SCAs/ RRBs/Nationalised Banks. Once all the terms and conditions have been accepted, the necessary documents and funds are then released to the concerned beneficiaries. NSKFDC released the funds with the receipt of demand being made from the SCAs/ RRBs/Nationalised Banks after taking into consideration all the parameters of release as per the Lending Policies & Guidelines (LPG) of NSKFDC
Frequently Asked Questions
Individuals belonging to the Safai Karamchari community (including waste pickers), identified manual scavengers, and their dependents aged **18 years and above** are eligible. Co-operative societies or associations promoted by them can also apply.