Kerala NMDFC Education Loan Scheme
Scholarship Amount
About This Scholarship
This scheme provides crucial financial assistance through education loans for students from minority communities in Kerala.
Candidates can receive substantial funding of up to ₹20 lakh for pursuing education within India, and up to ₹30 lakh for those opting to study abroad. These loans are offered at nominal interest rates, aiming to support academic aspirations without imposing a heavy financial burden.
The interest rates applied to the scheme differ based on the candidate's gender and the specific credit line accessed:
• For Credit Line-1: A uniform interest rate of 3% is applied for both male and female candidates. This ensures equitable access to funds.
• For Credit Line-2: A slightly different structure is in place, with an interest rate of 8% applicable for male candidates and a lower rate of 5% for female candidates.
Important Notes regarding the scheme:
• A significant concession of 3% is extended to women beneficiaries under Credit Line 2, further promoting gender equality in educational opportunities.
• The moratorium period for repayment is thoughtfully set at 6 months after the completion of the course or obtaining a job, whichever event occurs earlier. This grace period allows recipients to transition into employment before commencing their loan repayments.
Eligibility Criteria
The applicants are required to fulfill the following eligibility criteria to be considered for this education loan scheme:
• Applicants must be Indian citizens and hold a domicile in Kerala. This ensures the benefits reach the target population within the state.
• Students must fall within the age group of 16 to 32 years at the time of application. This age bracket covers a wide range of students seeking higher education.
• Candidates must belong to recognized religious minority communities, which include Muslims, Christians, Sikhs, Buddhists, and Parsis, and must reside in Kerala.
• Students are required to have successfully cleared their previous qualifying examination, demonstrating academic capability.
• Applicants must have secured admission in a job-oriented technical or professional course. The duration of this course should not exceed 5 years to be eligible for the loan.
• Students must fulfill specific annual family income criteria, which vary depending on the credit line being applied for:
• For Credit Line-1: The annual family income must be less than ₹98,000 for applicants residing in rural areas, and less than ₹1.2 lakh for those in urban areas.
• For Credit Line-2: The annual family income must be less than ₹8 lakh, applicable uniformly for both urban and rural areas.
Required Documents
To successfully apply for the Kerala NMDFC Education Loan Scheme, applicants must compile and submit the following documents. It is crucial to ensure all documents are self-attested where specified:
• Self-attested Income Certificate, verifying the family's annual income as per the eligibility criteria.
• Self-attested Residence Proof, which can be any one of the following: Aadhaar Card, Ration Card, Voter ID, Passport, Telephone Bill, or Electricity Bill.
• Self-attested Religious Certificate, confirming the applicant's belonging to a recognized minority community.
• Self-attested Marksheet of the previous qualifying examination, demonstrating academic performance.
• Two recent passport-sized photographs of the applicant.
• Two recent passport-sized photographs of parents/co-obligant/guarantor, as applicable for the loan application.
Note: Students must submit a complete hard copy of all the required documents along with their filled application form directly to the State Channelising Agency (SCA).
How to Apply
Students interested in applying for the education loan can do so by carefully following the below-mentioned steps:
1. Step 1: Begin by visiting the official website dedicated to this scheme. This is the primary portal for all application-related information and forms.
2. Step 2: Navigate through the website and scroll down until you find and click on the ‘Find Schemes For You’ button. This section helps in filtering relevant schemes.
3. Step 3: On the subsequent page, locate and click on the ‘Loan Type’ option. From the available choices, select ‘Education Loan’. Following this, click on ‘Select State/UT’ and carefully choose ‘Kerala’ from the list of options provided.
4. Step 4: Continue scrolling down the page. You will find an option clearly labelled ‘Download Loan Application Form’. Click on this to download the application form to your device.
5. Step 5: Once the application form has been successfully downloaded, proceed to fill in all the required details accurately and completely. Ensure that all necessary supporting documents, as listed in the 'Required Documents' section, are attached to the form.
6. Step 6: Finally, create a combined physical file (hardcopy) containing your meticulously filled application form along with all the supporting documents. This comprehensive package must then be submitted to the designated State Channelizing Agency (SCA), which for this scheme is the Kerala State Minorities Development Finance Corporation (KSMDFC).