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If you’re an SC student aspiring for higher education but unsure how to fund it, the NSFDC Education Loan might be your saviour. This loan scheme for Scheduled Caste students is a government initiative by the National Scheduled Castes Finance and Development Corporation (NSFDC) to support SC students in pursuing higher education in India or abroad. The NSFDC loan scheme is a low-interest scheme that covers almost all the expenses.
Key Takeaways
- NSFDC offers low-interest education loans exclusively for Scheduled Caste (SC) students in India and abroad with a family income of less than ₹3 lakhs.
- It covers up to ₹40 lakhs at a 6.5% interest rate, with a 0.5% discount for women, and generally requires no collateral.
- Repayment is flexible, with a tenure of 10–12 years and a moratorium after course completion.
- Applications can be submitted through State Channelising Agencies (SCAs) or partner banks/organisations.
- The loan covers tuition fees, hostel, books, travel, insurance, and all major academic expenses.
What is an NSFDC Education Loan for SC Students?
The NSFDC loan scheme is a low-interest education loan scheme that offers financial assistance to Scheduled Caste students to take full-time professional or technical courses in recognised institutions, both in India and abroad. It offers up to ₹40 lakh or 90% of the course cost with flexible repayment options up to 15 years, and covers tuition fees, hostel costs, books, and other academic expenses.
The SC student loan by NSDFC is provided through State Channelising Agencies (SCAs) to SC applicants who meet the necessary NSFDC eligibility income requirements and caste criteria.
Get Education Loan for Any College in India. 100% Fees Financed
Let’s look at the specific features that make the NSFDC education loan a popular choice among SC students.
Key Highlights
Here are the key features of the NSFDC government education loan for SC/ST students:
|
Parameters |
Details |
|
NSFDC Full Form |
National Scheduled Castes Finance and Development Corporation |
|
NSFDC Education Loan Limit |
₹40 lakhs (for studies in India and abroad) |
|
NSFDC Education Loan Interest Rate (CAs) |
4% (0.5% rebate for women) |
|
NSFDC Education Loan Interest Rate (Beneficiaries) |
6.5% for both Indian and abroad studies (0.5% rebate for women) |
|
Repayment Period |
Up to 15 years |
|
Moratorium Period |
Course duration + 6 months (if loan repayment started) Course duration + 1 year (if loan repayment NOT started) |
|
Collateral Requirement |
No |
Are you looking for an abroad education and want to explore more options for abroad educational goals? Learn everything about education loan eligibility, interest rates and how to apply.
NSFDC Education Loan Interest Rate 2025
The interest rates for NSFDC education loans for applicants pursuing studies in India or abroad are the same for 2025.
Below are details of the loan limits and interest rates:
|
Location |
Loan Limit |
Interest Rate |
|
Study in India |
Up to 90% of the course fee or ₹40 lakhs |
6.5% |
|
Study Abroad |
Up to 90% of the course fee or ₹40 lakhs |
6.5% |
SC students can benefit from subsidised interest under the NSFDC education scheme; however, NBFCs and fintechs like Propelld are faster and more flexible, often collateral-free, making higher education more financially accessible.
Propelld offers interest rates between 11.5%–16% depending on course, country, and profile, with 100% transparency and no hidden fees.
NSFDC Loan Eligibility Criteria (as of October 2025)
To qualify for the NSFDC Education SC/ST student loan, the following eligibility criteria must be met:
Students looking to understand the NSFDC loan eligibility for SC students can refer to the official guidelines and eligibility criteria. Also, check here how you can improve your eligibility for other education loans.
Not Eligible for NSFDC Education Loan? Explore Propelld’s Flexible, Merit-Based Education Loans.
NSFDC Education Loan Documents Checklist
To apply for an NSFDC education loan, the following documents are required:
- Passport-size Photograph
- Aadhaar Card
- Income Certificate
- Schedule Caste Certificate
- Residence Proof
- Valid Passport (For Study Abroad)
- Valid Visa/Permit (If applicable for Study Abroad)
- Educational Qualification Certificates
- Admission Confirmation from the educational institute with the fee and other charges
- Institute Identity Card, if admission has already been taken
- Additional documents are required for verification, as requested by the NSFDC or the lending institution.
Applying for an education loan with Propelld is easier! Find out which documents are required to make your loan process seamless.
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NSFDC Education Loan: Expense Covered
The loan is provided as a one-time assistance to cover various expenses associated with education, including:
- Admission Fee
- Tuition Fee
- Books and Stationery
- Equipment and Study Materials
- Examination Fee
- Hostel and Mess Expenses
- Insurance Premium – Coverage for the loanee in case of death or permanent disability.
- Travel Expenses – Includes passage money and visa expenses for studying abroad.
- Caution Money
- Development Fund
- Clothing Allowance – Includes weather-protective clothing for students in extreme climates (for foreign study).
Propelld can disburse education loan in minimum documents and in as low as 48 hours. See our average sanction and disbursal timelines in our SLA Policy.
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NSFDC Education Loan: Eligible Courses
NSFDC offers education loans for various professional and technical courses across various domains. The courses eligible for financial assistance are as follows:
|
Professional/Technical Domain |
Name of the Course |
|
Engineering |
Diploma, B.Tech, BE, M.Tech, ME courses |
|
Architecture |
B.Arch, M.Arch |
|
Medical |
MBBS, MD, MS |
|
Biotechnology/Microbiology/Clinical Technology |
Diploma, Degree courses |
|
Pharmacy |
B.Pharma, M.Pharma |
|
Dental |
BDS, MDS |
|
Physiotherapy |
B.Sc., M.Sc. |
|
Pathology |
B.Sc., M.Sc. |
|
Nursing |
B.Sc., M.Sc. |
|
Information Technology |
BCA, MCA |
|
Management |
BBS, MBA |
|
Hotel Management & Catering Technology |
Diploma, Graduation, Post Graduation |
|
Law |
LLB, LLM |
|
Education |
CT, NTT, B.Ed, M.Ed |
|
Physical Education |
C.P.Ed., B.P.Ed., M.P.Ed. |
|
Journalism & Mass Communication |
Graduation, Post Graduation |
|
Geriatric Care |
Geriatric Care |
|
Midwifery |
Diploma |
|
Laboratory Technician |
Diploma |
|
Commerce |
Chartered Accountancy (CA) Cost Accountancy (ICWA) Company Secretaryship (CS) |
|
Actuarial Sciences |
Graduation, Post Graduation, FIA |
|
Chartered Engineering Courses |
Associate Member of Institute of Engineers (AMIE) and Institute of Electronics & Telecommunication courses |
|
Higher Education |
Doctoral Studies leading to M.Phil/PhD from recognised institutions |
Beyond full-time degrees, the NSFDC also supports vocational and technical certifications that build practical job skills.
How much will your education loan cost monthly? Try our Education loan EMI calculator and get an instant estimate.
NSFDC Education Loan: Eligible Certifications
The following table lists the certifications available under the NSFDC Education Loan Scheme, designed to develop skills and enhance career prospects across diverse fields.
- Hardware and Networking certification
- Automobile Servicing and Repairs certification
- Microsoft Office and Web-based services certification
- Certification in Electronic Assembly
- Entrepreneurship development certification
- Garment Construction certification
- Pattern Cutting in metallic objects through software certification
- Beauty Parlour certification
- CAD using AutoCAD certification
- CNC Milling and Turning Programming and Operation certification
- Photography and Videography certification
- Plastic Extrusion and Injection Machine Operator certification
- Publishing and MS Office certification
- Repairing of Refrigerator and Air Conditioner certification
- Repairing and maintenance of Diesel Engine and Power Tiller certification
- Soft Toys making certification
- Welding and Fabrication certification
- Electrician certification
Explore other government education loan options for SC/ST students.
People Also Ask
Does NSFDC education loan require collateral?
No. No collateral security is required. However, since the scheme is implemented through State Channelising Agencies (SCAs) and banks, the requirement of collateral may vary depending on local rules. So, applicants need to check with their lending bank.
Can I get an ₹40 lakh NSFDC education loan without collateral?
Yes, many banks and financial institutions offer an NSFDC education loan up to its maximum limit of ₹40 lakh without requiring collateral. However, you will still need to confirm with the lending bank/SCA.
Points at a Glance
- While NSFDC takes up to 15 days for processing, many NBFCs like Propelld, disburse the loan 10X faster.
- NSFDC typically offers a moratorium = course period + 6–12 months depending on scheme.
Collateral-free up to ₹7.5L for most schemes; above this, tangible collateral usually required unless in Scholar or premier-institute list.
How to Apply for the NSFDC Loan Scheme?
NSFDC (National Scheduled Castes Finance and Development Corporation) provides education loan for SC students through various Channel Partners. Below is a step-by-step guide to NSFDC loan apply online:
Submit the NSFDC loan application form to the District Offices of State Channelising Agencies (SCAs).
Download NSFDC Education Loan Application Form (PDF)
View List of State Channelising Agencies (SCAs)
Students must submit all supporting documents to receive the official NSFDC loan application and sanction letter before disbursement.
People Also Ask
Can I apply for an NSFDC education loan online?
NSFDC Education Loan Repayment Period
The repayment for NSFDC Education Loans is made in quarterly installments. The maximum repayment period is 12 years, including the study period and moratorium after loan disbursement.
The NSFDC Loan repayment period is as follows:
|
Loan Amount |
Maximum Repayment Period (including Moratorium Period) |
|
Full amount |
10 years (6 months, Moratorium period where repayment has started) |
|
Full amount |
12 years (1 year Moratorium period where repayment has not started) |
For students who’ve already availed an education loan from another bank, they can avail of NSFDC’s refinancing option to make repayment easier.
Want to know how to plan your repayment period and repay smartly? Check out Propelld’s Education Loan Repayment guide.
NSFDC Education Loan Interest Rate
The interest rates for NSFDC education loans vary depending on whether the student is pursuing studies in India or abroad.
Below are details of the loan limits and interest rates:
|
Location |
Loan Limit |
Interest Rate |
|
Study in India |
Upto 90% of course fee or INR 30 lakhs |
6% |
|
Study Abroad |
Upto 90% of the course fee or INR 40 lakhs |
7% |
SC students can benefit from subsidized interest under NSFDC education scheme, making higher education more financially accessible.
Are you dreaming of studying abroad? Don't let financial concerns stop you! Securing an education loan for international studies has never been easier. Discover how to get an education loan to study abroad. Understand the eligibility criteria and explore all the necessary steps to make your education dreams a reality.
NSFDC Education Loan Interest Rate Under Refinance
NSFDC offers refinance to Public Sector Banks (PSBs) and Regional Rural Banks (RRBs) for educational loans provided to students pursuing full-time professional or technical courses at recognised institutions. This refinance applies once the student receives the full loan disbursement.
NSFDC Refinance for PSBs and RRBs
Below is the table showing the refinance offered by NSFDC for loans provided to students pursuing studies in India and abroad.
|
Parameter |
Loan Amount for Studies in India |
Loan Amount for Studies Abroad |
|
Maximum Refinance Limit |
INR 10 lakhs |
INR 20 lakhs |
|
Refinance Percentage |
100% |
100% |
NSFDC Refinance Interest Rate
Below is a summary of the interest rates for NSFDC's refinance scheme, which supports PSBs and RRBs in providing loans for students pursuing professional and technical courses.
|
Parameters |
Interest Rate Per Annum |
|
|
Men |
Women |
|
|
NSFDC Rate |
1.5% |
1% |
|
Interest Spread allowed to Banks |
2.5% |
2.5% |
|
Total Charged from Beneficiaries |
4% |
3.5% |
NSFDC Education Loan: Repayment Period
The repayment for NSFDC Education Loans is made in quarterly instalments. The maximum repayment period is 15 years, including the study period and a 6-month moratorium after loan disbursement.
The repayment period depends on the loan amount:
|
Amount of Loan |
Maximum Repayment Period including Monitorium Period |
|
Upto INR 7.5 lakhs |
10 years |
|
Above INR 7.5 lakhs |
15 years |
NSFDC Education Loan: Refinance Scheme
What is the Refinance Scheme Under NSFDC Education Loan?
Refinance under the Educational Loan Scheme (ELS) is a scheme that is offered to students who have already received the full disbursement of their education loan from a bank.
What is the Process of Refinance under NSFDC Education Loan?
The process of refinancing claims under the NSFDC education loan scheme involves the following steps:
- Banks select applicants based on NSFDC’s eligibility criteria.
- Banks communicate the selection or rejection of loan applications to the applicants.
- Banks submit state-wise consolidated details of cases financed under the ELS scheme in the prescribed format (Annexure-I).
- After completing the necessary formalities, NSFDC will appraise the proposals, issue a Letter of Intent (LOI) for approved cases, and disburse funds to the bank.
- Banks switch individual loan accounts of beneficiaries under the NSFDC schemes within 30 days from the date of disbursement by NSFDC. Banks will inform NSFDC using the prescribed format (Annexure II).
- The switch-over of individual loan accounts must be communicated to beneficiaries upon receipt of funds from NSFDC.
- Banks shall recover loan instalments from beneficiaries as per the repayment schedule set by the bank.
- There is no maximum limit on the refinance amount, and claims will be sanctioned irrespective of the loan amount. However, the minimum refinance amount for each case will be ₹25,000 or more.
NSFDC Education Loan: Affiliated Training Partners
NSFDC collaborates with various institutions and organisations to support students pursuing technical and vocational training.
Below is a list of NSFDC's affiliated training partners:
|
Electronics Corporation of India (ECIL) |
Domestic Worker Sector Skill Council |
|
Don Bosco Technology Society |
Furniture and Fittings Skill Council |
|
Guru Angad Dev Veterinary and Animal University |
Electronic Sector Skill Council of India |
|
National Institute for Entrepreneurship and Small Business |
Media and Entertainment Skill Council |
|
Central Institute of Plastic Engineering and Technology |
Nettur Technical Training Foundation |
|
Apparel Training and Design Centre |
Indian Plumbing Skills Council |
|
Handicraft and Carpet Sector Skill Council |
Beauty and Wellness Sector Skill Council |
|
Rubber Sector Development Council |
Central Leather Research Institute |
|
Textiles Sector Skill Council |
Ashok Leyland Institute of Driving Training and Research |
NSFDC Education Loan: Channel Partners
The following are the Channel Partners for NSFDC Education Loan across various states:
|
SCAs Name |
State |
|
Madhya Bihar Gramin Bank |
Bihar |
|
Uttar Bihar Gramin Bank |
Bihar |
|
Jharkhand Silk, Textile & Handicraft Development Corporation Ltd. |
Jharkhand |
|
Uttarakhand Gramin Bank |
Uttarakhand |
|
Maharashtra Gramin Bank |
Maharashtra |
|
Sarva Haryana Gramin Bank |
Haryana |
|
Telangana Grameena Bank |
Telangana |
|
Dena Gujarat Gramin Bank |
Gujarat |
|
Rajasthan Marudhara Gramin Bank |
Rajasthan |
|
Pragathi Krishna Gramin Bank |
Karnataka |
The NSFDC Education Loan Scheme promotes educational opportunities for Scheduled Caste students, offering financial assistance for domestic and international studies. With attractive terms, including low interest rates, flexible repayment, and comprehensive coverage of education-related costs, the scheme ensures deserving students can pursue their academic aspirations.
Compare Government and Private Loan Options
What are the Benefits of NSFDC Education Loan?
The NSFDC Education Loan Scheme offers several attractive benefits for eligible Scheduled Caste students pursuing professional or technical education in India and abroad:
Check official NSFDC loan limit here
Did you know? With Propelld, Relatives can be your education loan co-applicant too!
The government-backed NSFDC education loan is a boon for SC students to pursue higher education in India or abroad, offering up to ₹40 lakhs and a flexible repayment period up to 10–12 years.
However, whether you qualify for government aid or not, Propelld helps fund up to 100% of your tuition and living costs without collateral, with instant decisions and flexible repayment, and collateral-free loans. It offers:
- Tailored loan plans for all courses and colleges across India
- Quick approvals and disbursals with minimal documentation
- No collateral required, even for higher loan amounts
- Suitable for students without a co-applicant or stable income proof
With Propelld’s simplified process, students can focus on their education rather than the paperwork—making the journey smoother and more secure.
