NSFDC – The NSFDC was established by the Government of India on February 08, 1989 initially with the name National Scheduled Castes and Scheduled Tribes Finance and Development Corporation (NSCSTFDC). It was bifurcated into two separate corporations, one each for SCs & STs. The existing NSFDC is now functioning exclusively for the development of the Scheduled Castes w.e.f. 10.04.2001. It was incorporated as a fully owned Government of India Company under the Companies Act, 2013. It has been assigned the mandate for financing, facilitating and mobilising funds for the economic empowerment of persons having annual family income up to ₹3 lakh for both rural and urban areas. The NSFDC education loan scheme is an extension of this mandate.
NSFDC Education Loan Scheme meant for the students from marginalised communities helps them gain an access to higher education. The National Scheduled Castes Finance and Development Corporation (NSFDC) has introduced an education loan scheme exclusively for students from the Scheduled Caste (SC) communities. This scheme is designed to provide financial support to SC students aspiring to pursue higher education in professional and technical courses in India and abroad. By offering a substantial loan amount at a subsidised interest rate, the NSFDC aims to help SC students overcome financial hurdles and achieve their educational goals.
This article delves into the key aspects of the NSFDC Education Loan Scheme, including its features, eligibility criteria, loan limits, interest rates, and repayment terms. It will also explore the courses covered under the scheme and elaborate on how students can apply.
NSFDC Education Loan Scheme – Features
The NSFDC Education Loan Scheme provides one-time assistance for students pursuing full-time professional or technical courses in recognised institutions. It covers a wide range of expenses, ensuring financial security for the students throughout their education.
NSFDC Education Loan Scheme – Key Expenses Covered
- Admission Fee: The loan covers the admission fee for the selected course.
- Tuition Fee: The complete tuition fee for the course is included.
- Books, Stationery, and Equipment: Students can use the loan to purchase essential study materials and equipment required for their course.
- Examination Fee: The loan covers fees for semester exams, practicals, and other examination-related expenses.
- Hostel and Mess Expenses: For students staying in hostels, the loan covers the cost of accommodation and food.
- Insurance Premium: An insurance policy is provided to cover the loanee in case of death or permanent disability.
- Travel Expenses/Passage Money: For students pursuing studies abroad, the loan covers travel expenses, including visa fees.
- Caution Money and Development Fund: Any caution money or contributions to a development fund required by the institution are also covered.
- Clothing Allowance: For students studying in extreme climatic conditions abroad, a clothing allowance is also covered.
The NSFDC Education Loan is comprehensive in nature. It ensures that the students do not have to worry about additional costs associated with their education.
NSFDC Education Loan Scheme – Loan Amount and Interest Rates
The loan limit varies depending on whether the student is pursuing their studies in India or abroad. Additionally, the interest rates charged under the scheme are lower than traditional loans, making this a more affordable option for SC students.
Maximum Loan Limit
- For studies in India: Up to ₹30 lakh or 90% of the course fee, whichever is less.
- For studies abroad: Up to ₹40 lakh or 90% of the course fee, whichever is less.
NSFDC Education Loan Scheme – Interest Rate
| Location | Loan Amount | Interest Rate |
| Study in India | Up to 90 % of course fee
or ₹20 lakh (whichever is less) |
4% (0.5% rebate for female students) |
| Study Abroad | Up to 90 % of course fee
or ₹30 lakh (whichever is less) |
4% (0.5% rebate for female students) |
Repayment Terms
The repayment period under the NSFDC Education Loan Scheme is structured to give students ample time to repay the loan after completing their studies. The repayment period varies based on the loan amount. It is as under:
- For loans up to ₹10 lakh: The loan must be repaid within 10 years.
- For loans above ₹10 lakh: The repayment period extends up to 12 years.
NSFDC Education Loan Scheme – Eligible and Covered Courses
The NSFDC Education Loan Scheme covers a wide range of professional and technical courses, both in India and abroad. The courses eligible for the loan scheme include undergraduate, postgraduate, and diploma programs in various fields.
| Professional and Technical Domain | Name of the Courses |
| Engineering | Diploma, B.Tech, BE, M.Tech, ME courses |
| Architecture | B.Arch, M.Arch |
| Medical | MBBS, MD, MS |
| Biotechnology/Microbiology/Clinical Technology | Diploma, Degree courses |
| Pharmacy | B.Pharma, M.Pharma |
| Dental | BDS, MDS |
| Physiotherapy | B.Sc., M.Sc. |
| Pathology | B.Sc., M.Sc. |
| Nursing: B.Sc., M.Sc. | B.Sc., M.Sc. |
| Information Technology | BCA, MCA |
| Management | BBA, MBA |
| Hotel Management & Catering Technology: | Diploma, Graduation, Post Graduation |
| Law | LLB, LLM |
| Education | CT, NTT, B.Ed, M.Ed |
| Physical Education | C.P.Ed., B.P.Ed., M.P.Ed. |
| Journalism & Mass Communication | Graduation, Post Graduation |
| Geriatric Care | Geriatric Care |
| Midwifery | Diploma |
| Laboratory Technician | Diploma |
| Commerce | Chartered Accountancy (CA)
Cost Accountancy (ICWA) Company Secretaryship (CS) |
| Actuarial Sciences | Graduation, Post Graduation, FIA |
| Chartered Engineering Courses | Associate Member of Institute of Engineers (AMIE) and Institute of Electronics & Telecommunication courses |
| Higher Education | Doctoral Studies leading to M.Phil/PhD from recognised institutions |
NSFDC Education Loan Scheme – Eligibility Criteria
To apply for the NSFDC Education Loan Scheme, students must meet specific eligibility criteria. It is as follows:
- SC Category: Only Indian students hailing from the Scheduled Caste (SC) categories are eligible to apply.
- Course Type: The applicant must be pursuing a regular, full-time professional or technical course in a recognised institution in India or abroad.
- Academic Performance: The student must have successfully cleared their last qualifying examination before applying for the loan.
By fulfilling these criteria, students can take the first step toward obtaining the financial support they need to continue their education.
NSFDC Education Loan Scheme – Application Process
The students can apply for the NSFDC Education Loan Scheme either through an online or offline mode. The step-by-step guide on how to apply for the loan is as follows.
- Visit the Official NSFDC Website: The applicants should visit the NSFDC official website at nsfdc.nic.in in order to apply for the scheme.
- Navigate to the Schemes Section: Hover over the “Schemes” tab and click on the “Educational Loan Scheme (ELS)” option.
- Download the Application Form: Click on the “Forms” button located under the “Quick Links” section and download the application form for the education loan scheme.
- Fill in the Required Details: Complete the application form by providing accurate personal, academic, and financial details.
- Attach Supporting Documents: Upload the necessary documents, such as proof of identity, SC certificate, income certificate, admission letter, etc.
- Submit the Application: Submit the completed application form along with the documents to the respective State Channelizing Agency (SCA). The contact details of SCAs can be found on the NSFDC website.
NSFDC Loan Scheme – Different Types
The NSFDC offers the following Loan Schemes:
- Term Loan
- Micro Credit Finance
- Mahila Samridhi Yojana
- Mahila Kisan Yojana
- Shilpi Samriddhi Yojana
- Laghu Vyavasaya Yojana
- Educational Loan Scheme
- Vocational Education and Training Loan Scheme (VETLS)
- Green Business Scheme (GBS)
- Aajeevika Microfinance Yojana (AMY)
- Udyam Nidhi Yojana
- Standup India Scheme
- Swachhta Udayami Yojana
The NSFDC Education Loan Scheme offers a lifeline to SC students aspiring to pursue professional and technical education but facing financial barriers. By providing financial assistance with low-interest rates, comprehensive coverage of educational expenses, and flexible repayment terms, the NSFDC ensures that deserving students can focus on their studies without facing financial worries. For students looking to embark on higher education in India or abroad, the NSFDC Education Loan Scheme is a valuable resource that opens doors to a brighter future.
NSFDC Education Loan Scheme – FAQs
Does NSFDC provide loans to all persons from the Scheduled Castes communities?
No, the NSFDC provides loans only to economically poor sections of Scheduled Castes whose annual family income is up to ₹3 lakh both in rural & urban areas.
Is the eligibility for loan based on caste and economic criteria alone?
Yes, however, apart from caste and economic criteria, the applicants preferably should have practical experience/skill and entrepreneurial ability in the concerned field to ensure that they can manage their business successfully.
What is the maximum loan amount available under this scheme?
For studies in India, the maximum loan amount is ₹30 lakh or 90% of the course fee, whichever is less. For studies abroad, the maximum loan amount is ₹40 lakh or 90% of the course fee.
What is the interest rate for the NSFDC Education Loan Scheme?
For studies in India, the interest rate is 6% per annum, with female beneficiaries enjoying a reduced rate of 5.5%. For studies abroad, the rate is 7% per annum, with female beneficiaries eligible for a 6.5% interest rate.
Are there any prepayment charges for the education loan?
No, the borrowers can repay the loan any time after commencement of repayment of loan. No pre-closure charges apply for the borrowers in case of early repayment of loan.
Is there any interest rebate for female students?
Yes, female beneficiaries are entitled 0.5% rebate on the interest rate, making it 5.5% for pursuing studies in India and 6.5% for pursuing studies abroad. Interest rebate ranging from 0.5% – 1% is offered to women beneficiaries in certain schemes.
Can I apply for an education loan for both undergraduate and postgraduate courses?
Answer – Yes, the loan can be availed for undergraduate, postgraduate including diploma courses in professional and technical fields.
Are diploma courses eligible for the NSFDC Education Loan Scheme?
Yes, diploma courses in professional and technical fields are eligible under this scheme.
What are the different types of loan schemes of NSFDC?
The NSFDC offers the following loan schemes: (i) Term Loan, (ii) Micro Credit Finance, (iii) Mahila Samriddhi Yojana, (iv) Mahila Kisan Yojana (v) Shilpi Samriddhi Yojana (vi) Laghu Vyavasaya Yojana (vii) Educational Loan Scheme (viii) VETLS (ix) GBS (x) AMY (xi) Udyam Nidhi Yojana (xii) Standup India Scheme (xiii) Swachhta Udayami Yojana.
For which of the educational courses, the educational loan is provided by NSFDC?
Answer – The Educational Loan is provided for the courses run by the recognised educational institutions. Presently, it is provided for pursuing full time professional/technical courses in the following:
- Full time Professional/Technical courses in the fields of Engineering, Medical, Dental, Management, Information Technology, Hotel Management, Architecture, Physiotherapy, Bio-Technology, Law, Education, Journalism etc.
- Professional courses like CA/ICWA/CS/AMIE/FIA/IETE.
- Higher education like Doctoral Studies leading to M.Phil/PhD from recognised institutions.