About Government Education Loan for SC/ST Students
Education loans have numerous benefits. Other than fulfilling the dreams of many students, education loans for the special category of community help them empower and contribute to the development of the nation. That's exactly what government education loans for SC/ST students aim to achieve. These loans provide financial assistance to SC/ST students pursuing full-time vocational or technical courses in India or abroad.
It is pivotal in light of rising educational expenses, which significantly affect students from marginalized sections of society like SC and ST. To address such concerns and promote financial inclusivity, the government has established the National Scheduled Tribes Finance and Development Corporation (NSTFDC) and the National Scheduled Castes Finance and Development Corporation (NSFDC). If you are planning to take up the government education loan for sc/st students under NSTFDC or NSFDC, read on to know how you can apply.
NSFDC Education Loan
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 Eligibility
The points of eligibility for NSFDC education loan are:
- 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).
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Key Features of Government Education Loan for SC/ST Students
The NSFDC and NSTFDC education loan scheme is available to SC and ST students who have secured admission to a recognized university. Students can apply for this education loan for any full-time technical or vocational course, including engineering, management, medicine, and journalism, among others. Here is an overview of NSFDC and NSTFDC education loans:
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Eligible Courses Under Education Loan for SC/ST Students
Both NSFDC and NSTFDC provide education loans to SC/ST students for a range of courses. Whether you want to pursue business or law, these loans have got your back! Note that you should pursue these courses from a recognized university or institute. Below is the list of all the courses that are eligible for either of the two loans:
Technical Courses
Some of the popular technical courses eligible for NSFDC and NSTFDC are:
- Engineering (Diploma/ B.Tech /B.E, M.Tech/ME.)
- Architecture (B.Arch/M.Arch),
- Information Technology like BCA or MCA
- Associate Member of Institute of Engineers (AMIE)
- Institute of Electronics & Telecommunication
Medical & Health Science
Some of the popular courses eligible for NSFDC and NSTFDC are:
- Medical (MBBS/MD/MS)
- Biotechnology/Microbiology/Clinical Technology
- Pharmacy(B.Pharma/M.Pharma)
- Dental (BDS/MDS)
- Physiotherapy (B.Sc./M.Sc.)
- Pathology (B.Sc/M.Sc.)
- Nursing (B.Sc./M.Sc.)
- Geriatric Care (Diploma/P.G.)
- Midwifery (Diploma)
- Laboratory Technician (Diploma)
Business Studies & Management
Some of the popular business courses eligible for NSFDC and NSTFDC are:
- BBA/MBA
- Chartered Accountancy (CA.)
- Cost Accountancy (ICWA)
- Company Secretaryship (CS.)
Social Sciences & Humanities
Some of the popular humanities courses eligible for NSFDC and NSTFDC are:
- B.Ed/M.Ed
- Journalism and Mass Communication (Graduation/Post Graduation)
- Physical Education (C.PEd./B.PEd/M.PEd)
- M.Phil/Ph.D. from recognized institutions
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Eligibility Criteria of Government Education Loan for SC/ST Students
Once you consider applying for a government education loan for minorities, you must determine whether you fit the eligibility criteria of NSFDC and NSTFDC. Here is an outline of the eligibility criteria for both schemes:
Other Eligibility Criteria
- The candidate must support their application with excellent academic scores. Moreover, you must be studying on a merit basis.
- You should have secured admission in a full-time professional or technological course (B.Tech, MBBS, M.Arch, BE) in an accredited university in any country of the world.
- Students should have no ongoing or sanctioned loan whatsoever in operation for the course toward which the NSFDC or NSTFDC loan is being applied.
Documents Required to Access Government Education Loan for SC/ST Students
Once you have understood the eligibility criteria for the minority education loan scheme, make sure that you have the necessary documents to submit during the loan application process. Here is an outline of all the essential documents you must keep handy while applying for the education loan:
- Keep Your Basic KYC Documents Ready
- Aadhar Card
- PAN Card
- Photocopy of the passbook
- Address Proof
- Voter’s ID Card
- Ration Card
- Passport
- Electricity bill, telephone Bill or other utility bills
- Two recent and clear passport-size photographs
- Scheduled Caste’s (SCs) Certificate for NSFDC education loan and Scheduled Tribes (ST.) Certificate for NSTFDC loan. The local legal authority, such as Sub-divisional Magistrate or Assistant-divisional Magistrate, should issue the certificate.
- Admission letter issued by the recognized university, which includes fees and other charges on a yearly basis.
- Photocopy of the online application form. You should submit it on the official portal of NSFDC or NSTFDC Education Loan.
- Passing certificates from all the previous institutions should be attested.
- Income certificate issued by Revenue Inspector, Village Pradhan or the authorized deputy, president or chairman of municipality or any such gazetted officers.
- Valid Certificate of Date of Birth
- Prospect of the course for which you are seeking a loan.
- Photocopy of Bank passbook’s first page
- Photocopy of your passport and visa number if you are enrolled in a foreign university.
- Proof that you have completed the registration process in a college or university recognized by the government and you are issued with a certificate from the Indian embassy upon submission of your admission letter.
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Government Education Loan for SC/ST Students- How to Apply
Applying for a government education loan for SC/ST students follows a detailed application process. Here is a step-by-step guide on how to apply under minority education loan schemes such as NSFDC or NSTFDC properly:
- Step 1: Visit the official NSFDC or NSTFDC website to determine your eligibility. You can also refer to our previous section to confirm your eligibility.
- Step 2: Now, make sure that you have collected and organized all the required documents as discussed. Ensure that you have all the updates and valid documents. Failing to have one can result in a failure of your candidature.
- Step 3: Next, download the loan application form from the official website of the NSFDC or NSTFDC Education Loan, as your preference. Fill up all the mandatory details in the application form for further processing.
- Step 4: You must now submit the education loan application form to the District Offices of State Channelizing Agencies (SCAs).
- Step 5: Next, the government agency will examine your application and scrutinize it properly before forwarding it to the head office of NSTFDC or NSFDC. These forwarded applications are officially recommended by these agencies for loan sanction.
- Step 6: Once the sanction system is set up, the agency is issued the Letters of Intent (LOIs), which display the terms and conditions for acceptance.
- Step 7: Finance is transferred to the beneficiaries’ agency’s account once both parties agree on the transaction terms and conditions, guaranteeing the fulfillment of prudential norms.
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What is Samaj Kalyan Education Loan for SC Students?
The "Samaj Kalyan Education Loan" for SC (Scheduled Caste) students is a financial assistance program offered by Gujarat Social Justice & Empowerment Department . Its primary aim is to provide educational loans to students belonging to the Scheduled Caste category, enabling them to pursue higher education without financial constraints.
These loans typically cover various expenses related to education, including tuition fees, books, hostel fees, and other educational expenses.
Features of Samaj Kalyan Education Loan
The various features of samaj kalyan education loan are:
- Loan Amount: Upto 15 lac
- Interest Rate: 4%
- Moratorium Period: Course duration +6 months
- Repayment Tenure: 10 years
- Collateral Required: Yes
The other education loan by the Gujarat government is GUEEDC. The objective of such schemes is to promote education among marginalized communities and empower them with the means to pursue their academic goals and enhance their socio-economic status.
How Propelld Benefits You in Processing Education Loan
Availing of a government education loan for SC/ST students under schemes like NSFDC or NSTFDC may seem overwhelming at first. It can be a time-consuming and hefty process. However, you can bypass your inconvenience and simplify your process with Propelld. We help you with the following:
- Proper Support from Financial Officers: Our financial officers are properly trained and can compare and suggest the best loan options. They will also negotiate with lenders to get favorable terms and conditions.
- End-to-end Assistance: Our experts guide you towards applying for an education loan so that your application gets accepted successfully.
- Quick Processing Time: We make your loan process quick. You can access your education loan within a few days, saving you time and effort.
Why Propelld?
Benefits of Propelld Education Loan
Conclusion
Getting a quality education is one of the biggest decisions that students make in their lives. This decision, however, requires strong financial backing, which is not available for everyone, especially for SC and ST communities. That's why the government education loan for sc/st students proves to be important.
If you want to make the student loan process easier, call our experts at Propelld now. We offer tailored financing solutions to help students pursue their goals. We will not only negotiate with the lenders but also simplify the entire process.
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