SC-ST Education Loan for Abroad Studies

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One of the major problems for students who want to study abroad is the finances required for the same. Most students lack funds to support their higher education and thus opt for education loans for abroad studies. SC-ST communities in India are among reserved categories or people exploited for a long time. However, to help these communities overcome exploitation and grab equal opportunities, various organizations provide education loans to students in these categories. To know more about SC-ST education loans for abroad studies, eligibility requirements, and much more, then Keep Reading!

Must Read: How Much Education Loan Can You Get To Study Abroad: Check The Limit Here!

What is NSFDC?

The National Schedule Castes Finance and Development Corporation is a highly recommended name when talking about SC-ST education loans for studies abroad. Established in 1985 by the Government of India, NSFDC is a non-profit organization aiming to build the structure to help students from SC-ST communities have the required avenues for pursuing higher education. This organization helps students get SC-ST education loans for abroad studies and in India. 

Loan Particulars Details
Maximum Loan AmountINR 20 Lakh 
Rate Of Interest4% per annum 
Maximum Loan Repayment Period15 years
Moratorium6 months after getting the job or completing the course

Also Checkout: Things To Know Before Applying For A Study Abroad Education Loan For Your Child

Eligibility Criteria

There are a few eligibility requirements that you are required to qualify for in order to become eligible for an SC-ST education loan for abroad studies. Some of the important requirements include; 

  • You are required to be a citizen of India.
  • You must have a valid SC-ST certificate issued by a competent authority (the competent authority varies depending upon states in general).
  • The family income of your parents must be up to INR 3 lakhs per annum.
  • You are required to have secured admission to a recognized university across the globe on the basis of merit.

Documents Required

There is a list of documents that you are required to submit in order to sanction the loan. Make sure to submit the original copies of the documents given below;

  • You are required to submit an accurately filled and signed application form with the sign of the student as well as the parents.
  • Copies of passport
  • SC caste certificate as well as income certificate.
  • Address proof such as ration card, voter’s Id Card, passport, etc.
  • Offer letter by the preferred university
  • Passing certificate by the earlier institution. 

Must Checkout: Documents Required For Education Loan

Important Details 

Some of the important details that you are required to keep in mind when applying for an SC-ST education loan for abroad studies. 

Maximum Loan Amount

The SC-ST education loan for abroad studies is usually higher, and the Government of India approves INR 10 lakhs or over 90% of the course fees as a sanctioned amount. 

Rate of Interest

One of the most attractive aspects of getting an SC-ST education loan for abroad studies sanctioned is its astonishingly lower interest rate. The interest rate for SC-ST education loans for abroad studies is 4% per annum. However, for girls, candidates get an additional discount of 0.5% on the interest rate.

Repayment Period

The duration of repayment of the amount sanctioned by NSFDC is a maximum of 15 years, equivalent to the duration of repayment by most private banks. Usually, the longer duration of loan sanctioned leads to higher interest rates; however, for SC-ST, education loans for abroad students receive low-interest rates for 15 years. 

Moratorium Period

The moratorium period is the duration after completing the studies, where you are required to search for a job opportunity and settle before initiating loan repayment. The moratorium period is 6 months after getting the job as well as the completion of the course. 

Also Read: How Do You Pay Student Loans While Working Abroad? 

Loan Recovery and Procedure

The loan recovery is also a smooth process that helps students pay the instalment of the loan without being financially burdened. This loan recovery is made in quarterly instalments across the tenure of the loan.

Getting an SC-ST education loan for abroad studies is quite simple and gets approved within one month.

  • All you must do is submit the required documents in the correct order.
  • You are required to apply through the official website of NSFDC by clicking on apply for a loan.
  • Then, you are required to select your institution from the menu, and after filling in all the details, you are required to generate a passport for future use.
  • After applying, you receive an acknowledgement ID.
  • Finally, you need to take the printout of the application form, as a signed copy is required at the time of disbursement of the loan. 

Also Checkout: Education Loan For NRI Students To Study Abroad In 2023

Expenses Covered in the SC-ST Education Loan for Abroad Studies

One of the major worries of students is the expenses covered under loans sanctioned for higher education abroad. Thus here is the list of expenses covered 

  • The tuition fee for the course.
  • The admission fee is payable at the beginning of the course.
  • The fees for the library, laboratory, and examination.
  • The costs of the hostel and mess for students who live on campus.
  • The premium for insurance protects loan recipients in the event of death or permanent disability.
  • The price of a visa is also included in the cost of travelling abroad.
  • Other costs, such as caution funds, development fees, and so on.
  • The cost of purchasing clothing when travelling to a country with extreme weather, where the temperature could drop far below freezing.
  • For unforeseen circumstances, however, it may not exceed one per cent of the course’s total cost.
  • Expenses required for the completion of thesis and projects.
  • Any additional costs that you may require to complete the course and obtain university certification.

Also Checkout: Study Abroad Loans For OBC Category Students


Q1. Are SC students eligible for a student loan?

Ans. To provide SC students with educational loans, the government established NSDFC. This loan is for both domestic and international education. You can obtain a quality education at subsidized interest rates with the assistance of NSFDC.

Q2. Is there a loan subsidy for overseas education?

Ans. Yes, foreign government education loan subsidies are available.

Q3. What is the scheduled caste education loan’s interest rate?

Ans. Rate of interest: 2% to 5% per year. Period of Repayment: The loan must be paid off in five years by quarterly payments. A 90-day moratorium is part of this.

Are you planning to pursue higher education abroad? Reach out to our Fly Finance experts to get help on finance-related issues through your journey, be it international money transfers, bank accounts or more.

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4 thoughts on “SC-ST Education Loan for Abroad Studies”

    • Hi, for straightforward advice on study abroad finances, call 1800572126. Discover easy education loan applications, best bank accounts for students, and international money transfers and seamless forex services


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