NSFDC Education Loan Scheme is a government-sponsored program, which is run by the Ministry of Social Justice and Empowerment, Government of India. Under this scheme, undergraduate and postgraduate students from the Scheduled Caste (SC) category can borrow up to INR 20 lakh to study in India and up to INR 30 lakh to study abroad, at a maximum interest rate of 4%.
Under the NSFDC education loan scheme, female applicants will get an interest rebate of 0.5%. This scheme is open to students who wish to pursue regular professional/technical courses recognized by the Government in India and abroad.
Furthermore, the Indian government will provide financial aid to students in India, covering up to 90% of the course fee or INR 20 lakh, whichever is lower. Students who want to study abroad can also receive financial aid, covering up to 90% of the course fee or INR 30 lakh, whichever is lower. Loans up to INR 7.50 lakh can be repaid in up to 10 years, while loans exceeding INR 7.50 lakh can be repaid in up to 15 years.
This article explains all the important details about the scheme, including who is eligible, what the benefits are, what documents you need to apply, what the interest rate is, and how to apply.
NSFDC Education Loan Scheme – General Overview
| Name of Scheme | NSFDC Education Loan Scheme |
| Provider | Ministry of Social Justice and Empowerment, Government of India |
| Official Website | nsfdc.nic.in |
| Eligibility | Indian students belonging to Scheduled Castes (SC) category with annual family income up to INR 3 lakh |
| Eligible Courses | Undergraduate and postgraduate (professional/technical) courses |
| Loan Limit | Up to 20 lakh (Study in India)
Up to INR 30 lakh (Study Abroad) |
| Interest Rate | 4%
(0.5% rebate for female beneficiaries) |
| Loan Repayment Time | Up to 15 years |
| Application Mode | Online and offline |
| Application Period | Open throughout the year |
NSFDC Education Loan Scheme – Eligibility
Here are a few key things to keep in mind when deciding if you qualify for the scheme:
- The student must be an Indian citizen.
- Only students belonging to the Scheduled Castes (SC) category are eligible to apply for the scheme.
- The annual family income for students belonging to urban and rural areas should not exceed INR 3 lakh per annum.
- Students must plan to pursue regular professional/technical courses approved by the Government in India or abroad.
- Students must have cleared their last examination (school, undergraduate, or postgraduate level).
NSFDC Education Loan Scheme – Eligible Courses
Below is the list of professional and technical courses approved by the Government for pursuing studies in both Indian and international institutions:
- Engineering (Diploma/ B.Tech /B.E, M.Tech/M.E.)
- Architecture (B.Arch./M.Arch.)
- Medical (M.B.B.S/M.D./M.S.)
- Biotechnology/Microbiology/Clinical Technology (diploma/degree)
- Pharmacy (B.Pharm./M.Pharm.)
- Dental (B.D.S./M.D.S.)
- Physiotherapy (B.Sc./M.Sc.)
- Pathology (B.Sc./M.Sc.)
- Nursing (B.Sc./M.Sc.)
- Information Technology (B.C.A./M.C.A.)
- Management (B.B.A./M.B.A.)
- Hotel Management & Catering Technology (Diploma /graduation/postgraduation)
- Law (L.L.B./L.L.M.)
- Education (C.T./N.T.T./B.Ed./M.Ed.)
- Education (C.T./N.T.T./B.Ed./M.Ed.)
- Physical Education (C.PEd./B.PEd./M.PEd.)
- Journalism & Mass Communication (Graduation/postgraduation)
- Geriatric Care (Diploma/postgraduate/diploma)
- Midwifery (Diploma)
- Laboratory Technician (Diploma)
- Chartered Accountancy (C.A.)
- Cost Accountancy (I.C.W.A.)
- Company Secretaryship (C.S.)
- Actuarial Sciences (Graduation/post graduation/F.I.A.)
- Associate Member of Institute of Engineers (A.M.I.E.) and Institute of Electronics & Telecommunication
- Higher education (Doctoral studies leading to M.Phil./Ph.D. from recognized institutions)
NSFDC Education Loan Scheme – Interest Rate
To learn more about the interest rates and maximum loan limits under the scheme, students can refer to the table below:
| Location | Loan Limit | Interest Rate |
| Study in India |
Up to 90% of the course fee or INR 20 lakh
(whichever is less) |
4% (0.5% rebate for female beneficiaries) |
| Study Abroad |
Up to 90% of the course fee or INR 30 lakh (whichever is less) |
4% (0.5% rebate for female beneficiaries) |
NSFDC Education Loan Scheme – Expenses Covered
The following benefits are covered under this education loan scheme:
- Admission fee
- Tuition fee
- Books, stationery, and equipment expenses
- Examination fee
- Hostel and mess expenses
- Insurance premium for policy (covering loan in case of death or permanent disability)
- Travel expenses/passage money (including visa expenses) for studying abroad
- Caution money
- Development fund
- Clothing allowance (including weather-protective clothing in extreme climates for foreign study)
- Provision of 1% of the total course cost is allocated to cover unforeseen expenses
- Thesis printing charges
- Other charges related to the submission of the thesis
- Campus conveyance (including bus and railway fare)
Note: Any other items necessary for the course may be taken into consideration.
NSFDC Education Loan Scheme – Repayment Period
The repayment period for education loans depends on the loan amount. Eligible students can repay their loans over the following time period:
- Students who have applied for an education loan up to INR 7.5 lakh must repay the loan amount within 10 years.
- Students who have applied for an education loan above INR 7.5 lakh must repay the loan amount within 15 years.
| Note: Students need to repay the loan in quarterly instalments, which will commence either after a moratorium period of 6 months or upon obtaining employment, whichever occurs earlier. |
NSFDC Education Loan Scheme – How to Apply?
Students have the option to apply for the scheme through both online and offline modes. Here are the steps that must be followed by students when applying for this scheme:
1. Visit the official website at nsfdc.nic.in.
2. Navigate to the ‘SCHEMES’ tab.
3. Scroll down the page and click on the ‘EDUCATIONAL LOAN SCHEME (ELS)’ tab.
4. Click on the ‘Forms’ button located on the right side under the ‘Quick Links’ section.
5. Now, click on the ‘Education Loan’ tab.
6. Download the application form and fill out the relevant details.
7. Attach the supporting documents (hard copy) in the prescribed format.
8. Create a file including the application form and documents and submit it to the respective State Channelizing Agency (SCA).
| Note –
To find the concerned authority’s address, phone number, and email ID, please visit the official website of NSFDC. To download the application form, check the official document released by the SCA. |
Documents Required
- SC Certificate of the student
- Income certificate
- Two passport-size photographs
- Address proof such as Aadhaar card, voter ID, passport, etc.
- Letter of Acceptance from the university
- Passing certificate from the previous institute
Contact Details:
National Scheduled Castes Finance and Development Corporation (NSDFC)
Address – 14th Floor, SCOPE Minar, Core 1 & 2, Laxmi Nagar, Delhi – 110 092
Email ID: support-nsfdc@nic.in
Telephone Number: (011)-22054392, 22054394, 22054396 | Fax Number: (011)-22054395
NSFDC Education Loan Scheme – FAQs
What’s the role of the NSFDC?
The National Scheduled Castes Finance and Development Corporation (NSFDC) has been entrusted with the responsibility of providing financial support to individuals with an annual family income of up to INR 3 lakh, residing in both rural and urban areas.
The NSFDC offers financial assistance to the target group through State Channelizing Agencies (SCAs), which are nominated by the respective State/UT Government, as well as other channel partners like public sector banks, regional rural banks, NBFC-MFIs, JHARCRAFT, NEDFi, and more.
What is the repayment period for the NSFDC Education Loan Scheme?
The repayment period is up to 10 years for loans up to INR 7.50 lakh, and up to 15 years for loans exceeding INR 7.50 lakh.
What is the last date to apply for the NSFDC Education Loan Scheme?
Students can apply for this loan scheme throughout the year.
Who is eligible for the NSFDC Education Loan Scheme?
The students belonging to Scheduled Caste (SC) category pursuing undergraduate and postgraduate (technical and professional) courses or diplomas can apply for the NSFDC scheme. Furthermore, the annual family income of students must not exceed INR 3 lakh.
Do I need to submit security money for the NSFDC scheme for SC students?
No, students do not need to submit any margin money or collateral while applying for the NSFDC scheme.
What is the repayment instalment duration for the NSFDC loan scheme?
Students need to repay the loan in quarterly instalments.
Can minority category students apply for the NSFDC loan scheme?
No, the scheme is exclusively tailored for students belonging to the Scheduled Caste (SC) category.