The Rajasthan Educational Loan Scheme For Minorities is a scheme launched by the Rajasthan Minority Finance & Development Co-operative Corporation. The main purpose of the scheme was to facilitate quality education for the students belonging to the Minority community. Students can get up to INR 30 lakhs for undergraduate and postgraduate programs abroad and INR 20 lakhs for study in India. Candidates who belong to the minority category, as specified in the National Commission of Minorities Act, 1992, are eligible for loans under this scheme. Let’s understand the application process, features and other details for Rajasthan Educational Loan for minorities.
Table of contents
- Rajasthan Minority Education Loan Scheme: Major Highlights
- Objectives of the Rajasthan Education Loan Scheme for Minorities
- Target Groups for the Rajasthan Educational Loan Scheme
- Eligibility Criteria
- How to Apply for the Rajasthan Educational Loan Scheme
- Documents Required for the Rajasthan Educational Loan Scheme
- FAQs
Rajasthan Minority Education Loan Scheme: Major Highlights
Under the minority scheme education loan to study abroad, you will get a loan of INR 30 lakhs to study abroad. The loan will be given in a maximum of 5 installments i.e. INR 6 lakhs per year. The course duration shall not exceed 5 years. The maximum repayment period of the loan is 5 years which will start after completion of the course.
| Particulars | Details |
| Name of the scheme | Rajasthan Educational Loan Scheme For Minorities |
| Maximum Loan Amount | INR 30 lakhs for study abroad INR 20 lakhs for study in India |
| Interest Rate | 3% p.a. for male and female students under credit line 1 8% for male and 5% for female students under credit line 2 |
| Repayment Period | 5 years |
| Eligible Courses | Technical and Professional Courses of duration not exceeding 5 years |
| Moratorium Period | 6 months after course completion or after getting a job, whichever is earlier |
Objectives of the Rajasthan Education Loan Scheme for Minorities
Education is the key to empowerment, and access to quality education can transform the future of individuals and communities. However, financial constraints often hinder students from pursuing higher education, especially in marginalized groups. To address this challenge, the Rajasthan Education Loan Scheme for Minorities has been introduced to provide financial support to students from minority communities in Rajasthan, enabling them to pursue their educational dreams without the burden of financial stress.
The primary objectives of the Rajasthan Education Loan Scheme for Minorities are as follows:
- Foster Equal Opportunities: This initiative ensures that students from minority backgrounds have equal opportunities to pursue education, regardless of their financial situation.
- Promote Higher Education: The scheme aims to facilitate access to higher education for students from minority communities, thereby promoting overall educational growth in the state.
- Empower Minority Communities: By making education affordable, the scheme seeks to empower students from minority communities, especially those from economically weaker sections, enabling them to become self-reliant and contribute to society.
- Reduce Financial Barriers: The scheme helps bridge the gap for students who are unable to afford the high costs of education, ensuring that they are not held back by financial limitations.
Target Groups for the Rajasthan Educational Loan Scheme
The primary purpose of the Rajasthan Minority Finance & Development Co-operative Corporation or RMFDCC is to provide financial aid to Minorities so that they can get opportunities for self-employment or any income generation activities. According to the National Commission of Minorities Act, 1992 the listed Minority communities are Muslims, Christians, Sikhs, Buddhists, and Parsis.
In January 2014, the Jain community was also added to this list. Any student belonging to these communities and is financially not capable of funding their studies is eligible for an education loan under the Rajasthan minority loan scheme. As per the rules, 2 category of family income limit is prescribed for the loan. Check the details below:
Loan under Credit Line 1
Under the scheme, families whose annual income does not exceed INR 81,000 in Rural areas and Rs. 1,03,000 in urban areas can apply for loans. The interest applicable under Credit Line 1 is 3% per annum for both male and female candidates.
Loan under Credit Line 2
The families whose annual income does not exceed INR 6.00 lakhs are eligible for the loan under this scheme. However, the effective interest rate under credit line 2 will be 8% for male students and 5% for female students. Credit Line 2 was introduced in September 2014 by adopting the “Creamy Layer” category for OBC.
Also Read: Looking for an education loan to study abroad from Gramin Banks? Check this blog on PGB Udaan Education Loan to Study Abroad and get all the information.
Eligibility Criteria
The government of Rajasthan has laid some eligibility criteria for education loans under the Rajasthan Educational Loan Scheme For Minorities. Go through all the major eligibility criteria and make sure that you are fulfilling all of them so that you can get the loan quickly. Check the eligibility criteria below:
- The age of the candidate should be between 16 years and 32 years
- Students must belong to a minority community as specified by the National Commission of Minorities Act, 1992.
- The duration of the course shall not exceed 5 years.
- The parent/Guardian must be the co-applicant in the loan.
- Approved securities of equal value of the loan such as UTI/NSC/ Public Sector Bond, etc shall be pledged as collateral security.
- Admission must have been confirmed to a listed university abroad or in India.
How to Apply for the Rajasthan Educational Loan Scheme
The application process for the Rajasthan Education Loan Scheme is offline. You need to visit the office of the nodal officer to submit the application form and the supporting documents. You can check and download all the loan-related information from the official website of the minority department of the Government of Rajasthan. Check the steps to download the application form:
- Visit the official website of the Department of Minority Affairs & Waqf, Rajasthan
- Find the ‘Downloads’ Tab and click on Forms
- On the next page, click on ‘Application for Education Loan’
- Download the form and fill in the information properly.
- Visit the office of minority affairs and submit the application form along with the relevant documents.
Also Read: Are you aware of the different types and categories of education loans to study abroad? Check this blog on Types of Education Loans to Study Abroad and explore the categories.
Documents Required for the Rajasthan Educational Loan Scheme
All the documents required for an education loan must be submitted at the time of applying. Make sure that the copies of documents are clearly visible. Check the list of documents below:
- 20 post-dated cheques for EMIs
- Self-guarantee deed (Rs. 500 non-judicial Stamp)
- Memorandum of agreement
- Certificate of Domicile
- Minority Certificate Issued by Tahsildar or the nodal officer assigned
- Income Certificate
- Recognition certificate from the nodal officer
- Fee Structure duly signed by nodal officer
- Security Documents
FAQs
Any student belonging to the minority communities as specified by the National Commission of Minorities Act, 1992 can apply for this loan. The age of the student shall be between 16 to 32 years and the family income shall not exceed as specified in the credit line 1 and 2.
Under this scheme, you will get an education loan at a 3% interest rate if the family income does not exceed INR 81,000 in Rural areas and Rs. 1,03,000 in urban areas. The interest rate of 8% for male and 5% for female students will be applicable if the annual income does not exceed INR 6.00 lakhs.
No. You cannot apply for a loan under any category if the annual income exceeds INR 6 lakhs.
You can get up to INR 30 lakhs for study abroad and INR 20 lakhs for study in India under the Rajasthan Educational Loan Scheme for Minorities.
Rajasthan Educational Loan Scheme For Minorities is provided to study abroad in all the major countries like the USA, UK, Australia etc.
For loans up to INR 7.5 lakh, no collateral is required. For higher amounts, banks may ask for collateral or a co-signer to secure the loan.
Yes, students already enrolled in an accredited course can apply, provided they meet the eligibility criteria, such as family income limits and age restrictions.
The repayment period typically starts 6 months to 1 year after course completion. The loan term can extend up to 15 years, depending on the amount and repayment capacity.
No specific academic qualifications are needed, but the student must be enrolled in a recognized institution or university in India or abroad for undergraduate, postgraduate, or professional courses.
Applications can be made through the official Rajasthan Minority Affairs Department website or by visiting the local bank or financial institution offering the loan scheme for minorities.
Rajasthan Educational Loan Scheme For Minorities was launched to help students belonging to minority communities who are economically backward. Check all the terms and conditions specified by the Department of Minority Affairs & Waqf, Rajasthan before applying for the loan.
To know more about the minority loan application process, the best international bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
| Related Blogs |
| Best Government Education Loans to Study Abroad |
| Vidya Lakshmi Portal Education Loan to Study Abroad |
| All About Government Schemes in India |
Follow Us on Social Media
