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Raghuvamshi Kanukruthi
Apr 17, 2024

Explore Government Education Loans for SC/ST Students: A full guide on eligibility, benefits, and how to apply. Secure your educational future!

About Government Education Loan for SC/ST Students

Other than fulfilling the dreams of numerous 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, here is how you can apply.

Brief Background of Educational Disparities Faced by SC/ST Communities

SC/ST communities in India have faced a deep educational disparity. These conditions emanated due to deep-seated socio-economic and cultural factors such as a sense of discrimination and social stigma. These groups had witnessed limited access to quality schools, inadequate infrastructure, and a lack of educational resources.

Furthermore, societal biases and stereotypes often lead to lower expectations and opportunities for SC/ST students, hindering their academic progress. As a result, educational progress lagged behind SC/ST communities in comparison to other socio-economic groups.

Over time, the government has started addressing these disparities by promoting financially inclusive policies. It also includes providing equitable access to educational opportunities by extending government education loan for minorities under different schemes.

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

  1. The student must be an Indian citizen.
  2. Only students belonging to the Scheduled Castes (SC) category are eligible to apply for the scheme.
  3. The annual family income for students belonging to urban and rural areas should not exceed INR 3 lakh per annum.
  4. Students must plan to pursue regular professional/technical courses approved by the Government in India or abroad.
  5. Students must have cleared their last examination (school, undergraduate, or postgraduate level).

Click here for Higher Chances of Approval than Banks - Propelld Education Loan

Government Education Loan for SC/ST Students Apply Online

The Indian government has introduced several education loan schemes to support students from Scheduled Castes (SC) and Scheduled Tribes (ST) in pursuing higher education. These loans aim to provide financial assistance and ensure that every student has the opportunity to achieve their educational aspirations without financial constraints. Here’s a comprehensive guide on how SC/ST students can apply for these loans online:

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:

Parameters NSFDC NSTFDC
Loan Amount Up to 30 Lakhs Up to 10 Lakhs
Expenses Covered All the tuition fees, living expenses, and accommodation NA
Interest Rate 4% 3% (State Channelizing Agencies) and 6% (Beneficiary)
Moratorium Period Course duration plus 6 months Course period in addition to one year or six months after the job
Repayment Period Up to 15 years Up to 5 years
Courses Covered Post-graduation courses, undergraduate courses, diploma programs, management courses, and Ph.D. All the courses conducted by colleges/universities recognized by UGC/Govt/AICTE/AIBMS etc.
Collateral No collateral required No collateral required

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:

  1. Engineering (Diploma/ B.Tech /B.E, M.Tech/ME.)
  2. Architecture (B.Arch/M.Arch), 
  3. Information Technology like BCA or MCA 
  4. Associate Member of Institute of Engineers (AMIE)
  5. Institute of Electronics & Telecommunication

Medical & Health Science

Some of the popular courses eligible for NSFDC and NSTFDC are:

  1. Medical (MBBS/MD/MS)
  2. Biotechnology/Microbiology/Clinical Technology
  3. Pharmacy(B.Pharma/M.Pharma)
  4. Dental (BDS/MDS)
  5. Physiotherapy (B.Sc./M.Sc.)
  6. Pathology (B.Sc/M.Sc.)
  7. Nursing (B.Sc./M.Sc.)
  8. Geriatric Care (Diploma/P.G.)
  9. Midwifery (Diploma)
  10. Laboratory Technician (Diploma)

Business Studies & Management

Some of the popular business courses eligible for NSFDC and NSTFDC are:

  1. BBA/MBA
  2. Chartered Accountancy (CA.)
  3. Cost Accountancy (ICWA)
  4. Company Secretaryship (CS.)

Social Sciences & Humanities

Some of the popular humanities courses eligible for NSFDC and NSTFDC are:

  1. B.Ed/M.Ed
  2. Journalism and Mass Communication (Graduation/Post Graduation)
  3. Physical Education (C.PEd./B.PEd/M.PEd)
  4. M.Phil/Ph.D. from recognized institutions

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:

Parameter NSFDC NSTFDC
Nationality Indian Indian
Caste Certification Required Scheduled Caste Scheduled Tribes
Annual Family Income Not more than 3 Lakh per annum Not more than 3 Lakh per annum
Priority to Female students Yes Yes

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:

  1. Keep Your Basic KYC Documents Ready
    • Aadhar Card
    • PAN Card
    • Photocopy of the passbook
  2. Address Proof
    • Voter’s ID Card
    • Ration Card
    • Passport
    • Electricity bill, telephone Bill or other utility bills
    • Two recent and clear passport-size photographs
  3. 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.
  4. Admission letter issued by the recognized university, which includes fees and other charges on a yearly basis.
  5. Photocopy of the online application form. You should submit it on the official portal of NSFDC or NSTFDC Education Loan.
  6. Passing certificates from all the previous institutions should be attested.
  7. Income certificate issued by Revenue Inspector, Village Pradhan or the authorized deputy, president or chairman of municipality or any such gazetted officers.
  8. Valid Certificate of Date of Birth
  9. Prospect of the course for which you are seeking a loan.
  10. Photocopy of Bank passbook’s first page
  11. Photocopy of your passport and visa number if you are enrolled in a foreign university.
  12. 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.

Application Process of Government Education Loan for SC/ST Students

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.

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.

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.

Government Education Loan for SC/ST Students - Full Guide!

Raghuvamshi Kanukruthi
April 17, 2024
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Shivam Bhardwaj
March 15th 2022

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About Government Education Loan for SC/ST Students

Other than fulfilling the dreams of numerous 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, here is how you can apply.

Brief Background of Educational Disparities Faced by SC/ST Communities

SC/ST communities in India have faced a deep educational disparity. These conditions emanated due to deep-seated socio-economic and cultural factors such as a sense of discrimination and social stigma. These groups had witnessed limited access to quality schools, inadequate infrastructure, and a lack of educational resources.

Furthermore, societal biases and stereotypes often lead to lower expectations and opportunities for SC/ST students, hindering their academic progress. As a result, educational progress lagged behind SC/ST communities in comparison to other socio-economic groups.

Over time, the government has started addressing these disparities by promoting financially inclusive policies. It also includes providing equitable access to educational opportunities by extending government education loan for minorities under different schemes.

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

  1. The student must be an Indian citizen.
  2. Only students belonging to the Scheduled Castes (SC) category are eligible to apply for the scheme.
  3. The annual family income for students belonging to urban and rural areas should not exceed INR 3 lakh per annum.
  4. Students must plan to pursue regular professional/technical courses approved by the Government in India or abroad.
  5. Students must have cleared their last examination (school, undergraduate, or postgraduate level).

Click here for Higher Chances of Approval than Banks - Propelld Education Loan

Government Education Loan for SC/ST Students Apply Online

The Indian government has introduced several education loan schemes to support students from Scheduled Castes (SC) and Scheduled Tribes (ST) in pursuing higher education. These loans aim to provide financial assistance and ensure that every student has the opportunity to achieve their educational aspirations without financial constraints. Here’s a comprehensive guide on how SC/ST students can apply for these loans online:

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:

Parameters NSFDC NSTFDC
Loan Amount Up to 30 Lakhs Up to 10 Lakhs
Expenses Covered All the tuition fees, living expenses, and accommodation NA
Interest Rate 4% 3% (State Channelizing Agencies) and 6% (Beneficiary)
Moratorium Period Course duration plus 6 months Course period in addition to one year or six months after the job
Repayment Period Up to 15 years Up to 5 years
Courses Covered Post-graduation courses, undergraduate courses, diploma programs, management courses, and Ph.D. All the courses conducted by colleges/universities recognized by UGC/Govt/AICTE/AIBMS etc.
Collateral No collateral required No collateral required

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:

  1. Engineering (Diploma/ B.Tech /B.E, M.Tech/ME.)
  2. Architecture (B.Arch/M.Arch), 
  3. Information Technology like BCA or MCA 
  4. Associate Member of Institute of Engineers (AMIE)
  5. Institute of Electronics & Telecommunication

Medical & Health Science

Some of the popular courses eligible for NSFDC and NSTFDC are:

  1. Medical (MBBS/MD/MS)
  2. Biotechnology/Microbiology/Clinical Technology
  3. Pharmacy(B.Pharma/M.Pharma)
  4. Dental (BDS/MDS)
  5. Physiotherapy (B.Sc./M.Sc.)
  6. Pathology (B.Sc/M.Sc.)
  7. Nursing (B.Sc./M.Sc.)
  8. Geriatric Care (Diploma/P.G.)
  9. Midwifery (Diploma)
  10. Laboratory Technician (Diploma)

Business Studies & Management

Some of the popular business courses eligible for NSFDC and NSTFDC are:

  1. BBA/MBA
  2. Chartered Accountancy (CA.)
  3. Cost Accountancy (ICWA)
  4. Company Secretaryship (CS.)

Social Sciences & Humanities

Some of the popular humanities courses eligible for NSFDC and NSTFDC are:

  1. B.Ed/M.Ed
  2. Journalism and Mass Communication (Graduation/Post Graduation)
  3. Physical Education (C.PEd./B.PEd/M.PEd)
  4. M.Phil/Ph.D. from recognized institutions

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:

Parameter NSFDC NSTFDC
Nationality Indian Indian
Caste Certification Required Scheduled Caste Scheduled Tribes
Annual Family Income Not more than 3 Lakh per annum Not more than 3 Lakh per annum
Priority to Female students Yes Yes

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:

  1. Keep Your Basic KYC Documents Ready
    • Aadhar Card
    • PAN Card
    • Photocopy of the passbook
  2. Address Proof
    • Voter’s ID Card
    • Ration Card
    • Passport
    • Electricity bill, telephone Bill or other utility bills
    • Two recent and clear passport-size photographs
  3. 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.
  4. Admission letter issued by the recognized university, which includes fees and other charges on a yearly basis.
  5. Photocopy of the online application form. You should submit it on the official portal of NSFDC or NSTFDC Education Loan.
  6. Passing certificates from all the previous institutions should be attested.
  7. Income certificate issued by Revenue Inspector, Village Pradhan or the authorized deputy, president or chairman of municipality or any such gazetted officers.
  8. Valid Certificate of Date of Birth
  9. Prospect of the course for which you are seeking a loan.
  10. Photocopy of Bank passbook’s first page
  11. Photocopy of your passport and visa number if you are enrolled in a foreign university.
  12. 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.

Application Process of Government Education Loan for SC/ST Students

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.

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.

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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Frequently Asked Questions

What is an NSFDC or NSTFDC education loan?

NSFDC education loan is a government scheme that provides education loans to students belonging to scheduled castes. On the other hand, the NSTFDC education loan is also a government scheme that provides education loans to scheduled tribe students of India.

Can I use an NSFDC or NSTFDC loan to study abroad?

While NSFDC provides education loans for minorities studying abroad, NSTFDC loans are only taken for studies in India. NSFDC provides up to 40 Lakhs for study abroad.

Is there any education loan for ST/SC students? 

Yes, there are education loans for minorities. Education loans for students belonging to scheduled Tribes are provided under the NSTFDC program, while scheduled caste students are given education loans under the NSFDC program.

Can SC students get an education loan?

Education loan scheme by the Ministry of Social justice and Empowerment for Scheduled Caste students pursuing full-time Professional/Technical courses in India or abroad.

What is top class education scheme for SC students?

The Scheme aims at recognizing and promoting quality education amongst students belonging to SCs, by providing full financial support. The Scheme will cover SC students for pursuing studies beyond 12th class.

What are the benefits for SC students?

  1. Scheme of Central Sector Scholarship of Top Class Education for SC Students.
  2. Scheme of Upgradation of Merit of SC Students.
  3. Scheme of Grant-in-aid to Voluntary and other Organizations Working for Scheduled Castes.
  4. Central Sector Scholarship Scheme of Top Class Education for Scheduled Caste Students.

How much is the SC ST scholarship?

2.00 lakh per annum per student for private sector institutions (ii) Academic allowance of Rs. 86,000 in the first year of study and Rs. 41,000 in every subsequent year, to take care of living expenses, books and stationery, computer/laptop of reputed brand with accessories like UPS and printer, etc.

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