Rajasthan Education Loan Scheme for Minorities: Features, Interest Rate, Repayment

Rajasthan Education Loan Scheme for Minorities
Home » Education Loan » Rajasthan Education Loan Scheme for Minorities: Features, Interest Rate, Repayment

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.

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 schemeRajasthan Educational Loan Scheme For Minorities
Maximum Loan AmountINR 30 lakhs for study abroad
INR 20 lakhs for study in India
Interest Rate3% 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 CoursesTechnical and Professional Courses of duration not exceeding 5 years
Moratorium Period 6 months after course completion or after getting a job, whichever is earlier

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

Who can apply for an education loan from the Rajasthan Educational Loan Scheme?

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. 

What is the interest rate for the Rajasthan Educational Loan Scheme For Minorities?

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. 

Can I get a Rajasthan Minority Education loan if my annual family income is INR 7 lakhs?

No. You cannot apply for a loan under any category if the annual income exceeds INR 6 lakhs. 

What is the maximum loan amount under the Rajasthan Educational Loan Scheme for Minorities?

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. 

Can I get a Rajasthan Educational Loan to study in the USA?

Rajasthan Educational Loan Scheme For Minorities is provided to study abroad in all the major countries like the USA, UK, Australia etc. 

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 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. 

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About Shekhar Suman

Shekhar is a versatile writer with a passion for sharing knowledge and creativity. With expertise in crafting informative blogs on study abroad and finance, Shekhar helps readers navigate the complexities of education and financial planning. Most of his writings blend the practicality of finance and the beauty of language, making a meaningful impact in both spheres. Beyond his professional pursuits, he finds solace in the writing Shayari.

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