ELS

Education Loan Scheme

7.0/10

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.

Central In Kind

States / UT: All India

Ministry / nodal: Ministry Of Social Justice and Empowerment

Nodal department: Department of Social Justice & Empowerment

Scheme for: Individual

Scheme profile

Categories: Education & Learning, Banking,Financial Services and Insurance

Sub-categories: Loan, Scholarships and student finance

Target beneficiaries: Individual

Tags: Higher Education, Loans To Students, National Scheduled Castes Finance And Development Corporation

Details

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. The objective of the scheme is to extend Education Loans to the students of Backward Classes for pursuing professional/technical education at the graduate and higher levels and for pursuing vocational Courses. All professional and technical courses at the graduate and higher levels are approved by the appropriate authority and vocational courses. Educational Loan shall be provided to eligible students for pursuing regular full time Professional / Technical recognized courses approved by the Government in the following fields in India or abroad :

  1. Engineering (Diploma/ B.Tech /B.E, M.Tech/M.E.)
  2. Architecture (B.Arch/M.Arch)
  3. Medical (MBBS/MD/MS)
  4. Biotechnology/Microbiology/Clinical Technology (Diploma/Degree)
  5. Pharmacy (B.Pharma/M.Pharma)
  6. Dental (BDS/MDS)
  7. Physiotherapy (B.Sc./M.Sc.)
  8. Pathology (B.Sc/M.Sc.)
  9. Nursing (B.Sc./M.Sc.)
  10. Information Technology (BCA/MCA)
  11. Management (BBA/MBA)
  12. Hotel Management & Catering Technology (Diploma /Graduation/Post Graduation)
  13. Law (LLB/LLM)
  14. Education (CT/NTT/B.Ed/M.Ed)
  15. Education (CT/NTT/B.Ed/M.Ed)
  16. Physical Education (C.PEd./B.PEd/ M.PEd)
  17. Journalism & Mass Communication (Graduation/Post Graduation)
  18. Geriatric Care (Diploma/Post Graduate Diploma)
  19. Midwifery (Diploma)
  20. Laboratory Technician (Diploma)
  21. Chartered Accountancy (CA)
  22. Cost Accountancy (ICWA)
  23. Company Secretaryship (CS)
  24. Actuarial Sciences (Graduation/ Post Graduation/FIA)
  25. Associate Member of Institute of Engineers (AMIE) and Institute of Electronics & Telecommunication
  26. Higher education like Doctoral Studies leading to M.Phil/PhD from recognized institutions.

Benefits

  • 1. 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
  1. 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.

Eligibility

  • 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.

Exclusions

  1. The educational loan cannot be provided for the completed course.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

7.0
/ 10
Public Benefit Score
Accessibility 6.0/10 Moderate
Rural usefulness 6.0/10 Moderate
Application complexity 5.0/10 Moderate
Financial impact 9.5/10 Good
Literacy barrier 4.0/10 Moderate
Women inclusivity 8.0/10 Good
Awareness 7.0/10 Good
Implementation reliability 7.0/10 Good
Bigger shape means a better fit for citizens
  • Accessibility6.0
  • Financial impact9.5
  • Rural utility6.0
  • Awareness7.0
  • Simplicity5.0
  • Inclusivity8.0

What problem does this scheme solve?

The Education Loan Scheme provides financial assistance to Scheduled Caste students for pursuing higher education, addressing a significant barrier to education access.

Key challenges addressed

  • Financial barriers to higher education for Scheduled Caste students

Most beneficial for

  • Scheduled Caste students seeking professional or technical education

Likely challenges

  • Complex application process for first-time applicants
  • Limited awareness among rural populations

Practical insights for citizens

The scheme is practical but requires better outreach and support for rural applicants.

Rural challenges

  • Limited access to information about the scheme
  • Difficulty in completing online applications

Digital challenges

  • Dependence on internet access for online applications

Implementation bottlenecks

  • Potential delays in loan disbursement

Awareness challenges

  • Low awareness in rural areas about eligibility and application process

Application analysis

Application mode
Hybrid
Documents burden
Low
Verification complexity
Moderate
Office dependency
Moderate
CSC support
Available
Estimated citizen effort
Moderate

Estimated beneficiary reach

  • Rural / urban reach Moderate
  • Gender reach Inclusive
  • Target income group Low-income families
  • Occupation reach Students

Benefit analysis

Benefit type
In Kind
Benefit frequency
One-time loan
Benefit practicality
High, as it covers a significant portion of educational expenses
Financial meaningfulness
High, as it can cover up to ₹40 lakhs for studies abroad
Long-term impact
Positive, as it enables higher education and better job opportunities for beneficiaries

Plain-language guidance

The Education Loan Scheme helps Scheduled Caste students get loans for higher education. It covers many professional courses and offers lower interest rates for women.

Who should apply
Scheduled Caste students pursuing professional or technical courses.
Who may struggle
First-time applicants and those with limited digital literacy.
Best application route
Apply via local CSC or online through the official website.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Online

  1. Click on official website to apply for the scheme. 1. Fill the Education Loan Application Form with all the details. 1. Click on Submit.

Offline

  1. Download the**** application form for this scheme. 1. Fill out the application form, enclose the documents, and submit them to the nearest bank or in the office of NSFDC.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

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".

References

Guidelines
https://nbcfdc.gov.in/loan-scheme-description/4/en
FAQs
https://nbcfdc.gov.in/sites/default/files/inline-files/FAQ-28.2.2020.pdf

Apply

Apply now

Opens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.

Frequently asked questions

What is the purpose of Education Loan Scheme?
Education Loan Scheme is a government welfare initiative designed to support Individual, Individual through benefits related to Education & Learning, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Education Loan Scheme?
Eligibility for Education Loan Scheme may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Education Loan Scheme?
Benefits under Education Loan Scheme may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Education Loan Scheme?
Education Loan Scheme is managed by Department of Social Justice & Empowerment and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Education Loan Scheme?
Yes, eligible applicants may be able to apply online for Education Loan Scheme through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Education Loan Scheme?
Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Education Loan Scheme?
Applications for Education Loan Scheme may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Education Loan Scheme?
Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is income certificate required for Education Loan Scheme?
Income certificate requirements may vary depending on beneficiary category, subsidy eligibility, and financial assistance criteria defined under Education Loan Scheme.
Is Education Loan Scheme a central government scheme?
Yes, Education Loan Scheme is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
Can students apply for Education Loan Scheme?
Eligible students studying in recognised institutions may apply for Education Loan Scheme depending on educational qualification, category, income limit, and academic eligibility.
Is scholarship amount provided under Education Loan Scheme?
Education Loan Scheme may provide scholarship assistance, tuition support, educational reimbursement, or financial aid for eligible students.
Does Education Loan Scheme provide healthcare or insurance support?
Education Loan Scheme may provide healthcare assistance, insurance coverage, cashless treatment support, medical reimbursement, or hospital-related benefits depending on the scheme structure.
Can beneficiaries use Education Loan Scheme at government hospitals?
Eligible beneficiaries may be able to access services at empanelled hospitals, government healthcare facilities, or authorised healthcare providers depending on scheme participation rules.
Can CSC centres help users apply for Education Loan Scheme?
Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Education Loan Scheme?
Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Can beneficiaries track application status for Education Loan Scheme?
Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Education Loan Scheme in All India?
Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Education Loan Scheme applications?
Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.