The Education Loan Scheme for the students of Backward Classes to pursue professional/technical education is an initiative by the National Backward Classes Finance And Development Corporation, Ministry of Social Justice & Empowerment.
This applies to pursuing professional/technical education at the graduate and higher levels and to pursuing vocational Courses.
COURSES COVERED
All professional and technical courses at the graduate and higher levels are approved by an appropriate authority and vocational courses.
MORATORIUM PERIOD
The moratorium period for recoveries from these Channel Partners is hereby uniformly fixed as five years irrespective of the type and duration of the course for which loans are provided.
REPAYMENT
The maximum recovery period may be 10 years after the lapse of the moratorium period of 5 years i.e. the loan will require to be repaid to NBCFDC by the Channel Partner within 15 years of the same being disbursed.
PRE-PAYMENT OF LOAN
The borrower can repay the loan any time after the commencement of repayment of the loan. No pre-closure charges shall be insisted from the beneficiary in case of early repayment of the loan.
Benefits of Education Loan Scheme for the students of Backward Classes
- Expenses 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.
- Quantum of Finance:
- For Professional / Technical Courses only – 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.
- 85% of the expenditure of the course subject to a maximum of ₹20,00,000 per student (For studying abroad), the balance will be borne by the student/SCA.
- Need-based finance to meet 90% of admissible expenses for the course which may be as ascertained by the Channel Partners based on the prevailing government stipulations, market conditions, level of specialization of course, etc. subject to the limit prescribed For Professional / Technical Courses as described above.
RATE OF INTEREST
i) For Boys : 4% p.a.
ii) For Girls : 3.5% p.a.
Eligibility
1. Members of Backward Classes, as notified by the Central Government/State Government from time to time.
2. The annual family income of the applicant is fixed at ₹ 3,00,000. The Channel Partners (State Channelising Agencies/Banks) are requested to release at least 50% of total funding to persons with annual family income up to ₹ 1,50,000.
3. The applicant should have obtained admission for any professional and technical courses approved by an appropriate agency such as AICTE, Medical Council of India, UGC, etc. in a duly accredited/recognized institute. Minimum 50% marks in qualifying exam i.e. the exam whose qualification is a pre-requisite for the course.
4. Should have secured admission to professional/technical courses in India or abroad through an entrance test/merit-based selection process.
The trainees should have secured admission in a course of the duration of at least period of six months in India and or supported by a Ministry/Deptt./Organization of the Government or a Company/Society/Organization supported by the National Skill Development Corporation or State Skill Missions/State Skill Corporations, Sector Skill Council approved courses, preferably leading to a Certificate/ Diploma/Degree, etc. issued by a Government Organization or an organization recognized /authorized by the Government to do so including but not limited to Nursing, Pharma, Tourism & Catering, Teachers Training, etc.
Application Process
Documents Required
- Proof of Identity (Aadhaar Card)
- Passport Sized Photograph
- Proof of Educational Qualification (Passing Certificate / Marksheet)
- Caste Certificate (issued by the relevant authority of District Administration).
- Annual Family Income Certificate on self-certification of the beneficiaries with the endorsement of the same by any Gazetted Officer notified by the State/Central government.
- In the case of a loan being applied at the Bank (Channel Partner), Self-Certification assessed and endorsed by the Branch Manager can be treated as valid proof.
- Bank Details of the Applicant.
