In your journey of study abroad, there are a lot of plans required. The first and foremost step while planning to study abroad is to manage finances. A large number of students get admission to their dream university in UK, USA or any other country with the help of a study abroad education loan. The government of India has launched many schemes of education loans for study abroad for minority students. Minority loan for abroad study is provided by almost all the government banks with subsidised interest rates. Let’s understand some important schemes through which you can get an education loan to study abroad.
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National Minorities Development & Finance Corporation (NMDFC)
In the past few years, the government of India made new plans and policies and replaced the old ones. As per the recent norms, the minority loan to study abroad will be provided under schemes launched by the National Minorities Development & Finance Corporation at the direction of the Government of India. NMDFC was been set up to promote economic development mainly for the “Backward Sections” amongst the Minority Communities. Check some of the key highlights of minority loans for study abroad:
- Under this scheme, the education loan is available for technical and professional courses of duration not exceeding 5 years.
- The maximum amount of loan will be 30 lakhs for study abroad courses for minorities
- The rate of interest will be 8% per annum. However, a concession of 3% will be provided to the women candidates.
- The students belonging to minority communities of India i.e. Muslims, Christians, Sikhs, Buddhists, Parsis & Jains, will be considered for the loan. A special preference will be given to the occupational group and women.
Also Read: Evidence of Financial Support
Minority Loan for Study Abroad by NMDFC:
Under the minority loan for study abroad by NMDFC, the target group has been divided into two categories i.e. Credit Line 1 and Credit Line 2.
NMDFC Credit Line-1 is available for people who have an annual family income of up to INR 98,000 and INR 1.2 Lakhs in rural and urban areas respectively. Credit Line 2 is for those who have a family income of up to INR 8 lakhs in any area (urban or rural). Check the detailed analysis of minority loans for study abroad provided by NMDFC:
| Schemes | Loan Amount | Applicable Interest Rate |
| Credit Line 1 (Maximum income of INR 1.2 Lakh for urban areas & INR 98,000 for rural areas) | INR 30 Lakhs | 3% p.a. |
| Credit Line 2 (Maximum income of INR 8 Lakh) | INR 30 Lakhs | 8% p.a. |
| Moratorium Period | – | 6 months after course completion or immediately after getting a job (whichever is earlier) |
| Repayment Period | – | 5 years |
How to Apply for Minority Loans to Study Abroad
All the schemes and programs implemented by NMDFC are through the SCAs (State Channelising Agencies) nominated by the state government and banking partners. When you finalise your university for study abroad and get an admission acceptance letter then you are required to apply for the education loan. Check the steps below to know the application process:
- Visit the official website of NDMFC i.e. ndmfc.org
- Go to Schemes and click on NMDFC schemes
- On the bottom of the page, you will see a link ‘Find a scheme for you: Click Here’
- Click on the same link and you will see a new page appearing on the window
- From the dropdown menu select the loan type and your state
- You will get the office address and contact details for further procedures.
- You can also download the application form and submit it to the concerned office as directed by the NMDFC.
Also Read: Education Loan without Collateral
Documents Required for Minority Loan to Study Abroad
In order to get the loan sanctions without any issue your documents should be appropriate. The concerned bank will verify all the documents and then it will release the sanction letter. Some of the most important documents for minority loan to study abroad are as follows:
- UID and PAN Card
- Community Qualification Details
- Income Certificate issued by state revenue authority
- Marksheet of last qualifying examination
- Address Proof (AADHAR Card/Ration Card/Voter ID/Passport etc.)
- Admission Acceptance Letter/Provisional Letter
- Expenses breakup from the University
Note: A lot of schemes for minority loan for abroad study has been discontinued by the Government of India as they were overlapping the newly launched schemes. Candidates are suggested to do thorough research while applying for a minority education loan under certain schemes.
FAQs
The maximum amount for a study abroad loan under the minority education loan scheme by NMDFC is INR 30 lakh.
No. You cannot get an interest-free education loan under any scheme. However, you can get an interest rate as low as 3% in case of having an annual income less than INR 1.2 lakh and INR 98,000 in urban and rural areas respectively. For annual family income less than 8 lakh, the interest rate will be 8% per annum.
NMDFC or the National Minorities Development and Finance Corporation is a National Level Apex Body established for the benefit of the Indian Minorities as defined under the National Commission for Minorities Act 1992.
Studying abroad is a dream for a lot of students. Sometimes belonging to a weaker section of society makes you worry about your dreams and aspirations. While a lot of banks provide education loans to study abroad, organizations like NMDFC offers education loan to study abroad for minority communities with low rate of interest. This makes things easier for students and financial hindrance gets eradicated swiftly.
If you are planning to study abroad then Leverage Edu can provide you with the best assistance with your study abroad journey. For booking the best accommodation abroad to start your study abroad experience you can contact Fly Homes at 1800572118.
