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Education & Learning; Banking,Financial Services and Insurance

Education Loan Scheme

A scheme named Education Loan Scheme by National Scheduled Castes Finance and Development Corporation (NSFDC) under the M/o Social Justice and Empowerment provides loans to students from Scheduled Castes who are pursuing full-time professional or technical courses in recognized institutions.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

- Maximum Loan Limit: Up to ₹30 lakhs (for studies in India) and upto ₹40 lakhs (for studies abroad) or 90% of course fee, whichever is less. 1. Rate of Interest: | - For studies in India, upto ₹30 lakhs or 90% of course fee, whichever is less. The rate of interest for male candidates is 6% whereas for female candidates it is 5.5%. The repayment period must be within 10 years for loan upto Rs.10 lakh. | - For studies abroad, upto ₹40 lakhs, or 90% of course fee, whichever is less. The rate of interest for male candidates is 7% whereas for female candidates it is 6.5%. The repayment period must be within 12 years for loan upto ₹10 lakhs. | The Moratorium Period is 6 months after course completion or getting employment, whichever is earlier in both the cases.

Who can apply

The beneficiary (ies) should be from the Scheduled Caste Community.; Individuals, Partnership Firms, and Co-operative Societies can undertake income-generating activities.; The annual family income of each member/applicant should not exceed Rs.3.00 lakh.; Applicants must apply for financial assistance from NSFDC through the concerned State Channelizing Agencies (SCAs)/Channelizing Agencies (CAs).; Annual family income of the applicants should be within Rs.3.00 lakhs (for both rural and urban areas w.e.f. 08.03.2018) under Credit Based Schemes.; There is no income criterion under Skill Development Training Programmes.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What Is The Full-Form Of NBCFDC?

The full-form of NBCFDC is "National Backward Classes Finance And Development Corporation".

Which Ministry/Department Manages This Scheme?

This scheme is managed by the Ministry of Social Justice & Empowerment.

For What Purposes Can The Amount Of The Loan Be Utilized?

The amount of the loan can be utilized by the students of Backward Classes for pursuing professional/technical education at the graduate and higher levels and for pursuing vocational Courses.

What Kinds Of Expenses Are Covered In This Scheme?

The following expenses are covered: Admission Fee & Tuition Fee; Books; Stationery & other instruments required for the course; examination fee; boarding & lodging expenses; insurance premium for policy during the loan period.

What Percentage Of The Expenditure On The Course Will Be Borne By The Student/SCA? Is There An Upper Ceiling?

90% of the expenditure of the course is subject to a maximum loan limit of [?]15,00,000 per student (For study in India), the balance will be borne by the student/SCA.

What Is The Meaning Of SCA?

SCA means "State Channelizing Agency".