Education Loan Scheme for Scheduled Caste Students

The Credit-Based Education Loan Scheme for Scheduled Castes aims to facilitate higher education for economically disadvantaged students. Under this initiative, eligible SC students can secure loans with preferential interest rates and flexible repayment terms.

The scheme emphasizes merit-based approval, ensuring deserving candidates receive financial support for academic pursuits. By promoting education accessibility, it empowers individuals from the Scheduled Castes to overcome financial barriers and pursue their educational aspirations.

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This credit-based scheme fosters social inclusivity and contributes to the overall development of marginalized communities through the avenue of education.

Key PointDetails
Scheme NameCredit Based Schemes For SC – Education Loan Scheme
Target GroupScheduled Caste students
Loan PurposeFull-time Professional/Technical courses in India or abroad
Loan Amount (India)Up to 90% of the Course Fee or Rs.20.00 Lakhs, whichever is less
Interest Rate (India)SCAs – 1.5%, Student – 4% (0.5% rebate for women beneficiaries)
Loan Amount (Abroad)Up to 90% of the Course Fee or Rs.30.00 Lakhs, whichever is less
Interest Rate (Abroad)SCAs – 1.5%, Student – 4% (0.5% rebate for women beneficiaries)
Repayment PeriodUp to 10 years (loans up to Rs.7.50 lakh) & up to 15 years (loans above Rs.7.50 lakh)
Moratorium Period6 months after course completion or getting employment, whichever is earlier
EligibilityScheduled Caste Category
Application ProcessOffline; contact nearest Channeling Agency
Documentation RequiredAadhaar Card, Income Certificate, Caste Certificate, Bank Account Statement
Application WorkflowSubmission to District Offices of SCAs; Scrutiny and appraisal; Recommendations to NSFDC
Alternate ApplicationSubmission to other Channelising Agencies of NSFDC (RRBs, Public Sector Banks, NBFC-MFIs)
Disbursement ProcessUpon acceptance of terms and conditions; Funds disbursed to SCAs/RRBs/Banks for onward disbursement
Loan RepaymentAs per the schedule stipulated by SCAs/CAs
More InformationPlease click here

Education is not just a personal triumph; it’s a collective victory that propels societies towards progress. The SC Education Loan Scheme is a stepping stone towards a future where every individual, regardless of background, has the opportunity to shine.

Education Loan Scheme for Scheduled Caste Students

In the pursuit of higher education, financial constraints often hinder the aspirations of many talented individuals, particularly those belonging to the Scheduled Caste (SC) category. Recognizing this, the Ministry of Social Justice and Empowerment has introduced an Education Loan Scheme tailored for SC students aspiring to pursue full-time Professional/Technical courses, both within India and abroad.

Understanding the Loan Structure:

For Students Within India: The Education Loan Scheme extends financial assistance of up to 90% of the course fee or Rs.20.00 Lakhs, whichever is less. The interest rates are structured at 1.5% for SCAs (State Channelising Agencies) and 4% for students, with a 0.5% rebate for women beneficiaries.

For Abroad Students: Similarly, for students pursuing education abroad, the scheme offers financial aid up to 90% of the course fee or Rs.30.00 Lakhs, whichever is less, with the same interest rates as mentioned for domestic students.

Key Objectives:

Promoting Inclusivity: Breaking down financial barriers, the scheme promotes inclusivity by ensuring that educational opportunities are accessible to all, irrespective of economic backgrounds.

Empowering Aspirations: Focused on empowering aspirations, the scheme enables SC individuals to pursue education without being hindered by financial limitations.

Key Benefits:

Financial Assistance: SC students within India can avail themselves of up to 90% of the course fee or Rs.20.00 Lakhs, with an interest rate of 4%, which reduces to 3.5% for women beneficiaries. Abroad students also receive financial aid on similar terms.

Repayment Period: The repayment tenure spans up to 10 years for loans up to Rs.7.50 lakh and up to 15 years for amounts exceeding Rs.7.50 lakh. A reasonable moratorium period of 6 months post-course completion or employment commencement is granted.

Eligibility Criteria:

This scheme exclusively caters to students falling under the Scheduled Caste category. The target group includes individuals with an annual family income of up to Rs.3.00 Lakhs.

Application Process:

The application process is streamlined for the convenience of eligible candidates. Interested individuals should submit their loan applications through offline mode. To initiate the process, applicants can contact the nearest Channeling Agency, details of which can be found at NSFDC Channel Partners.

Documentation Requirements:

To initiate the application process, applicants must submit the following documents:

  • Aadhaar Card
  • Income Certificate
  • Caste Certificate
  • Bank Account Statement

Repayment Flexibility:

The repayment period spans up to 10 years for loans up to Rs. 7.50 lakhs and up to 15 years for amounts exceeding Rs. 7.50 lakhs. A noteworthy moratorium period of 6 months after course completion or securing employment, whichever comes first, eases the financial burden on students.

Professional/Technical Courses Covered:

FieldCourses Covered
EngineeringDiploma, B.Tech/B.E, M.Tech/M.E
ArchitectureB.Arch/M.Arch
MedicalMBBS/MD/MS
Biotechnology/Microbiology/Clinical TechnologyDiploma/Degree
PharmacyB.Pharma/M.Pharma
DentalBDS/MDS
PhysiotherapyB.Sc./M.Sc.
PathologyB.Sc./M.Sc.
NursingB.Sc./M.Sc.
Information TechnologyBCA/MCA
ManagementBBA/MBA
Hotel Management & Catering TechnologyDiploma/Graduation/Post Graduation
LawLLB/LLM
EducationCT/NTT/B.Ed/M.Ed
Physical EducationC.PEd./B.PEd/M.PEd
Journalism & Mass CommunicationGraduation/Post Graduation
Geriatric CareDiploma/Post Graduate Diploma
MidwiferyDiploma
Laboratory TechnicianDiploma
Chartered AccountancyCA
Cost AccountancyICWA
Company SecretaryshipCS
Actuarial SciencesGraduation/Post Graduation/FIA
Higher education (M.Phil/PhD)Doctoral Studies from recognized institutions

Application Journey:

Eligible candidates, with an annual family income of up to Rs. 3.00 Lakhs, can submit their loan applications to the District Offices of State Channelizing Agencies (SCAs). The applications are meticulously scrutinized before being forwarded to the Head Offices. The viability of the projects proposed is assessed by the SCAs, and once deemed viable, they are sent to NSFDC for final sanction.

The eligible target group can also submit their applications to other channelizing agencies of NSFDC, such as Regional Rural Banks, Public Sector Banks, NBFC-MFIs, etc., under the signed Memorandum of Agreements.

The project proposals undergo a thorough appraisal process, with the Project Clearance Committee providing the final nod. Following the sanction, the SCAs/RRBs/Banks receive sanction letters (LOIs) with terms and conditions for acceptance. Once accepted, funds are disbursed, and the loan repayment schedule commences.

To streamline the application process, applicants must submit essential documents, including Aadhaar card, income certificate, caste certificate, and bank account statements.

The Credit-Based Education Loan Scheme for Scheduled Caste students serves as a beacon, illuminating the path to academic excellence. Empowering dreams and aspirations, this initiative not only provides financial support but also symbolizes a commitment to inclusivity and equal opportunities.


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