EDUCATION
LOAN SCHEME FOR MINORITY COMMUNITIES
NMDFC introduced the Educational Loan Scheme with the objectives to
facilitate job-oriented education amongst the weaker section of the
Minorities.
Objectives
The identified courses should be such which have the utmost probability
of equipping the beneficiaries for jobs, and the maximum duration of the course must be 5 years. Educational loan should be given for courses,
which are within the reach of the targeted group and have the least
possibility of being misused.
Eligibilty
i) The applicant should belong to the notified Minority Communities.
ii) The annual family income of the parent/guardian of the applicant
should be below Rs. 42,000/- in rural areas and Rs. 55,000/- in urban
areas.
iii) The applicant should be in the age group of 16-32 years.
iv) Confirmed admission in the intended course is the basic requirement
for availing the loan. However, application for loan can be made and
can also be sanctioned in anticipation of admission.
v) Women and Physically challenged candidates would be given preference.
vi) Selection out of the eligible candidates will strictly be on merit.
Eligibility Courses*
i) The course of study should have good potential in the job market.
ii) The duration of the course will not exceed 5 years however;
shorter duration courses may be preferred.
iii) The College/Institute should have been offering the courses for
the last 3 years and should be recognized by the Central/State Government
or by appropriate authority such as AICTE.
* The details of the approved courses will be published separately
Purpose of the Loan and Maximum Loan
Amount
Loan will be admissible for expenditure on the following items:
i) Admission fee and tuition fee.
ii) Cost of books, stationery and other instruments required for the
course.
iii) Examination fee
iv) Boarding and lodging expenses.
The maximum loan amount for the full course will be the total expenditure
under the above heads or Rs. 75,000/- w hichever is lower.
Terms
of Release of Loan
i) Admission fee, tuition fee, examination fee and similar expenditure
will be paid directly to the College/Institute as per the bill raised
by the College/Institute.
ii) The remaining sum can be paid by the way of a Cheque/Demand
Draft made in the name of the applicant through the Principal of
the College/Institute for expenditure on books, boarding and lodging.
iii) The loan will be released in instalments on trimester/semester/annual
basis depending upon the system of the concerned College/Institute.
The subsequent release of loan will depend upon successful completion
of the previous term. A certificate in this regard may be obtained
from head of the institute.
Pattern of Finance
NMDFC Share - 90%
KSBCDC Share -10%
Rate of Interest- 3%
p.a.
Moratorium Period
Moratorium in repayment of repayment of principal as well as interest
would extend up to six months from the date of completion of the
course or till the beneficiary starts earning whichever is earlier.
However, to reduce the burden of repayment, the beneficiary/parent/guardian
may be persuaded to make some regular periodic remittances as much
as possible even during the course of the training programme
Repayment of Loan
At the end of the moratorium period, the principal and interest
is to be repaid by the loanee in maximum of 60 equal monthly instalments.
A shorter repayment period should, however, be pursued wherever
possible.
In
the case the candidate discontinues the studies due to any reason
whatsoever, the loan with interest would become repayable immediately
in full or in instalments.
Security
Parent/Guardian of the applicant is to be taken as co-borrower.
In addition to the general guarantee conditions, obligation of parents/guardian
along with assignment of future income of the student for payment
of installments is compulsory.
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