SC & ST Education Loan for Abroad Studies

Over the years, many Indian students are aspiring to study abroad. But this aspiration of advanced education remains in the hearts of many due to the rising associated costs. While some have property to pledge and security to give for taking an education loan, many lack that. Similarly, students belonging from economically weaker sections might not have adequate financial resources to apply for loans from the banks.

To support such deserving students, especially those belonging to Scheduled Castes (SC) and Scheduled Tribes (ST), the Indian Government and various state authorities have introduced education loan schemes. These schemes are also applicable for SC and ST students planning to complete their higher education abroad.

For aspirant from the SC & ST category, this article is your go-to resource. Keep reading to get all the latest details about SC & ST education loans for abroad studies.

Types of SC & ST Education Loans for Abroad Studies

To provide equitable opportunities, the Government has launched several schemes for SC and ST students. Some of the notable schemes are mentioned below:

1. E-Samaj Kalyan Education Loan Scheme

An initiative by the Government of Gujarat, the E-Samaj Kalyan loan scheme supports socially and economically backward class (SEBC) students in pursuing higher education abroad.

Key Features of this Scheme Include:

• Loan Amount: Up to INR 15 lakhs.
• Interest Rate: Subsidized as per government norms and starts at 4%.
• Repayment Period: Flexible repayment terms post-course completion that goes up to 10 years.
• Coverage: Tuition fees, travel, accommodation, and other academic expenses.

Eligibility Criteria:

• Applicants must belong to SEBC or other eligible categories.
• Should be a resident of Gujarat.
• Must have secured admission to a recognized foreign institution for higher studies.

2. NSFDC Education Loan Scheme

The National Scheduled Castes Finance and Development Corporation (NSFDC) has started this scheme to support SC students aspiring to pursue professional or technical courses abroad.

Key Features of this Scheme Include:

• Loan Amount: Up to INR 40 lakhs or 90% of the course fee, whichever is lower.
• Interest Rate: Highly concessional at 3% per annum with additional concession for females.
• Repayment Period: Maximum of 10 years for loans under INR 10 lakhs & 12 years for beyond. It includes the moratorium period during the course and an additional six months after course completion.
• Coverage: Tuition fees, travel expenses, books, living costs, and other related costs.

Eligibility Criteria:

• The applicant must belong to the Scheduled Castes (SC) category and have the caste certificate.
• Annual family income should not exceed INR 3 lakhs.
• Admission to a full-time professional or technical course in a recognized foreign institution is mandatory.

These are the two most sought-after schemes that students from the backward classes can explore. The best part is that they also provide interest subsidy schemes for education loan abroad.

Going further, let’s check the application process for these schemes.

SC & ST Education Loan for Abroad Studies: Application Process

The application process for these schemes is relatively simple if you have all the required documents ready for uploading. Given below are the steps on how you can apply.

• Check your Options & Eligibility - Start by verifying that you belong to the eligible SC/ST or SEBC category. Ensure your family income meets the set criteria. Then confirm that your chosen course and institution are recognized under the scheme.

• Assemble the Required Documents - Next, you need to get all the required documents together. Some of them include Caste certificate issued by a competent authority, income certificate or proof of family income, admission letter from the foreign university. Previous academic certifications and degrees, valid ID proof like Aadhaar card, passport, etc.

• Obtain the Application Form - Visit the official website of the respective scheme like NSFDC, E-Samaj Kalyan or approach the allocated divisional office. Download or collect the application form to proceed with the application.

• Complete the Application - Fill out the form carefully, with accuracy in personal, academic, and financial details. Attach all the required documents in the prescribed format.

• Submit the Application - Next, submit the completed application form to the designated office, financial institution, or through the official online portal.

• Application Review & Approval - After submission your application will be reviewed for eligibility and verification. If your application is approved, then you will be notified via email. Finally, the loan amount will be disbursed directly to your institution as per the scheme's terms.

During the approval process, you can track your application online to see the status. Also, there are some post-approval formalities for disbursement and repayment. So, make sure that you complete these steps timely.

In conclusion, if you are planning to take a student loan India for studying abroad then these loan schemes are a great option.

With all the required information in hand, now is the right time to take the first step and completing the application process. With the right financial support, nothing is out of reach. Good luck!