AI SummaryEducation Loan Scheme (NSFDC) offers low-interest education loans to students from Scheduled Caste families for full-time professional and technical courses in India and abroad. National Scheduled Castes Finance and Development Corporation (NSFDC) is the agency that manages this scheme under the Ministry of Social Justice and Empowerment, Government of India. As of August 2026, eligible students can get up to ₹40 lakh or 90% of the course fee, whichever is less, and can apply online through the PM-SURAJ portal.
Education Loan Scheme (NSFDC) is a central government scheme that covers full-time professional and technical courses at recognized institutions. This includes engineering, medical, management, law, information technology, pharmacy, nursing and chartered accountancy. The support also extends to doctoral studies like M.Phil and Ph.D. The loan is given as a one-time support for the selected course.
Education Loan Scheme (NSFDC) - Introduction
NSFDC was set up in 1989 as a public sector undertaking under the Ministry of Social Justice and Empowerment. It works through a channel finance system and provides loans through State Channelizing Agencies (SCAs), public sector banks, regional rural banks, cooperative banks and other channel partners. Students do not apply directly to NSFDC; applications go through these partners or through the PM-SURAJ portal.
The loan covers many academic expenses including admission fees, tuition fees, books, stationery, equipment, examination fees, hostel and mess charges, professional insurance premiums and travel expenses for students studying abroad. It also covers caution money, development funds and clothing allowances for students in extreme climates.
Education Loan Scheme (NSFDC) covers many recognized professional and technical courses. These include:
- Engineering and Architecture: Diploma, B.Tech, B.E, M.Tech, M.E, B.Arch and M.Arch.
- Medical and Health: MBBS, MD, MS, BDS, MDS, Nursing, Physiotherapy, Pathology, Pharmacy, Biotechnology, Microbiology and Geriatric Care.
- Professional Skills: Management (BBA/MBA), Law (LLB/LLM), Hotel Management and Catering Technology, Journalism and Mass Communication, Information Technology (BCA/MCA).
- Finance and Accountancy: Chartered Accountancy (CA), Cost Accountancy (ICWA), Company Secretaryship (CS) and Actuarial Sciences.
- Education and Research: B.Ed, M.Ed, Physical Education and doctoral studies like M.Phil and Ph.D from recognized institutions.
Key Information
| Key Attribute | Details |
|---|---|
| Scheme Name | Education Loan Scheme (NSFDC) |
| Level | Central |
| Beneficiary States | All |
| Target Beneficiaries | Individual |
| Nodal Ministry | Ministry of Social Justice and Empowerment |
| Implementation Agency | National Scheduled Castes Finance and Development Corporation |
Benefits
Loan Amount: Up to ₹40 lakh or 90% of the course fee, whichever is less, for studies in India and abroad.
Interest Rate: Beneficiaries pay interest at 6.5% per annum as per the current scheme details on the NSFDC website. Rates may vary slightly from 6.5% to 8% per annum depending on the channelizing agency.
Repayment: Repayment period can go up to 12 years if repayment has not started, including the study period and a moratorium of course period plus one year. If the loan has already been given and repayment has started, the repayment period is up to 10 years with a moratorium of up to 6 months.
Eligibility
To apply for Education Loan Scheme (NSFDC), students need to meet the following conditions:
- Applicant must belong to a Scheduled Caste community and hold a valid caste certificate issued by a competent authority.
- Applicant must be enrolled in a regular, full-time professional or technical course at a recognized institution in India or abroad.
- Annual family income from all sources must not exceed ₹5 lakh for both rural and urban areas. This limit is effective from 7 January 2026.
- The loan is given as a one-time support for the selected course.
Application Process
Students can apply online through the PM-SURAJ portal or offline through the district office of a State Channelizing Agency. NSFDC does not accept direct applications.
STEP 1 - Choose your mode of application. Apply online through the PM-SURAJ portal at pmsuraj.dosje.gov.in, or visit the nearest district office of the State Channelizing Agency (SCA) in your state for the offline process.
STEP 2 - Fill in the education loan application form with personal, family and course details. Keep your caste certificate, income certificate and KYC documents ready.
STEP 3 - Submit the application with the required documents. For online applications, upload scanned copies of all documents on the PM-SURAJ portal.
STEP 4 - The State Channelizing Agency or channel partner verifies the documents and checks eligibility. The application is then forwarded to NSFDC.
STEP 5 - NSFDC reviews the file through its project and banking desk. Once approved, a Letter of Intent is issued to the student.
STEP 6 - After approval, the loan amount is transferred to the bank or institution where the student is enrolled.
Documents
Keep these documents ready before applying:
- Recent passport-size photograph
- Aadhaar Card and KYC documents
- Valid income certificate
- Caste certificate issued by a competent authority
- Proof of residence
- Admission confirmation letter from the institute
- Copies of educational certificates
- Valid passport and visa for students studying abroad
References
Official Scheme Page on NSFDC Website | NSFDC Frequently Asked Questions | PM-SURAJ Portal for Online Application | NSFDC Official Website
FAQ's
What is NSFDC?
NSFDC is the National Scheduled Castes Finance and Development Corporation, a public sector undertaking under the Ministry of Social Justice and Empowerment. It was set up in 1989 to provide low-cost loans, skill development and business support to Scheduled Caste families.
What is the contact address for help?
The registered head office is at National Scheduled Castes Finance and Development Corporation, 14th Floor, SCOPE Minar, Core 1 and 2, North Tower, Laxmi Nagar District Centre, Laxmi Nagar, Delhi - 110092. NSFDC also runs liaison centres in Mumbai, Kolkata, Lucknow and Bengaluru.
Can I apply directly to NSFDC?
No, NSFDC does not accept direct applications. Students can apply online through the PM-SURAJ portal or through authorized State Channelizing Agencies and other channel partners.
Can I use the loan for part-time courses?
No, the scheme is for students enrolled in regular, full-time professional or technical courses at recognized institutions only.
What is the income limit for the scheme?
Annual family income from all sources should not exceed ₹5 lakh for rural and urban areas. This limit has been in force since 7 January 2026.
Are there any special benefits for women?
NSFDC keeps a target of 40% of funds for women applicants under its term loan and micro finance schemes. Women students also get priority in the allocation of funds.