NSFDC Education Loan Scheme 2026: Up to ₹40 Lakh Loan, Interest Subsidy & Eligibility

At a glance

About the scheme

The Education Loan Scheme is implemented by the National Scheduled Castes Finance and Development Corporation (NSFDC) under the Ministry of Social Justice and Empowerment. Designed as a one-time financial support, the scheme enables students from Scheduled Caste backgrounds to pursue higher technical and professional education in India or overseas. The loan covers course expenses including tuition fees, books, equipment, hostel accommodation, mess charges, and travel costs for overseas education, at subsidized interest rates with an additional concession for female candidates.

Benefits

• Loan assistance up to ₹30,00,000/- for recognized studies in India (or 90% of course fees, whichever is less)
• Loan assistance up to ₹40,00,000/- for studies abroad (or 90% of course fees, whichever is less)
• Beneficiary interest rate of 6% per annum for studies in India, with an additional 0.5% interest rebate for female students
• Beneficiary interest rate of 7% per annum for studies abroad, with an additional 0.5% interest rebate for female students
• Repayment duration of up to 10 years for loans up to ₹10,00,000/-
• Repayment duration of up to 12 years for loans exceeding ₹10,00,000/-
• Comprehensive coverage including admission fees, tuition fees, stationery, books, equipment, hostel, mess, travel expenses, and visa costs

Who can apply (eligibility)

• The applicant must belong to a Scheduled Caste (SC) community
• The student must be enrolled in a regular, full-time professional or technical course in a recognized institution in India or abroad
• Annual family income of the applicant must be less than ₹3,00,000/- from all sources
• The loan is provided strictly as a one-time assistance

Who cannot apply

• Part-time, distance learning, or correspondence courses are not covered
• Students with an annual family income of ₹3,00,000/- or higher are not eligible
• Non-SC category applicants cannot apply
• Students who have already availed of this loan previously are ineligible, as assistance is provided only once

Documents required

• Recent passport-size photograph
• Aadhaar Card
• Caste Certificate
• Income Certificate
• Proof of Residence
• Valid Passport (for students applying for foreign studies)
• Valid Visa or student permit (for foreign studies)
• Educational qualification mark sheets and certificates
• Admission confirmation letter indicating course fee breakdown and payment schedule
• Student Identity Card issued by the educational institution (if already enrolled)

How to apply

1. 1Visit the nearest District Office of the State Channelizing Agency (SCA) to obtain the NSFDC education loan application form.
2. 2Fill out the prescribed application form completely and attach all required educational, income, and identity documents.
3. 3Submit the completed application form to the District Office of your State Channelizing Agency.
4. 4Wait while the SCA District Office scrutinizes your eligibility and forwards the proposal to its Head Office.
5. 5Upon examination and recommendation by the SCA Head Office, the proposal is evaluated and sanctioned by NSFDC.
6. 6Sign the loan agreement upon receipt of the Letter of Intent and receive fund disbursement through the designated banking channel.

Frequently asked questions