NHFDC education loan
has been set up by the Ministry of Social Justice & Empowerment, Government of India on 24th January 1997.
The company is register it self under Section 25 of the Companies Act, 1956 as a Company not for profit.
It is a project of Government of India and has an authorise share capital of Rs. 400 crores (Rupees Four Hundred Crore only).
Board of Directors nominated by Government of India manage NHFDC.
NHFDC functions as an Apex institution for channelising the funds to persons with disabilities through the State Channelising Agencies (SCAs) nominated by the State Government(s).
Objectives of NHDFC
The objectives of NHFDC are mainly for the benefits of the people with disabilities. They are as follows.
- To promote economic development activities
- self-employment and other ventures
- extend loans to pursue education
- assist in the upgradation of technical and entrepreneurial skills
- assist self-employed individuals
NHFDC provides Indian citizens with an educational loan to pursue higher studies in India or abroad.
Indians with 40% or more disability are eligible for getting educational loan from NHFDC.
All types of courses that fall under the below categories are eligible under the NHFDC education loan scheme.
- Graduation courses/ Post graduation courses/ Professional courses
- Other courses approved by UGC/Government/AICTE etc.
expenses covered under the scheme
The following expense are cover up under the scheme to help the student to complete his/her education.
- Fee paid to the college/school/hostel
- Examination/Library/Laboratory fee
- Fee required to purchase books/equipment/instruments/ uniforms
- Caution Deposit/Building Fund/Refundable Deposit
- To purchase computers to complete the course
- Cost of a Two-wheeler up to Rs. 50,000/-
- Other fee requirements will be paid for study tours, project work, assistive devices, etc.
Procedure for receiving loan
An application regarding the loan sanction has to be submitted in the prescribed format to the State Channelising Agency as authorized by the National Handicapped Finance and Development Corporation.
A fee of Rs. 5000 has to be deposite for educational loans for students who pursue education abroad and this will be adjusted with the margin money.
Sanctioning of the loan
Loans for students will be provided under two categories. They are:-
- Rs. 10 lakhs will be sponsor for students pursuing education in India.
- Rs. 20 lakhs will be sponsor for students pursuing education in abroad.
An interest rate of 4% per annum will be applicable and a rebate of 0.5% on interest is available to women beneficiaries.
Repayment of loan
Terms and condition are as follows :-
- Loan under the scheme have to be repaid within 7 years.
- Repaying of the loan have to be start from one year after the student has completed studies or after six months after acquiring a job.
- Interest for term loans will be start from the date of payment of the loan by the NHFDC.
- If the loan has to be extend by the Corporation, a simple interest will be impose on the loan amount at the prescribed or applicable rate at the moratorium period and if there are any unpaid interests, it shall be increase and will be charge at the commencement of repayment of the loan at par with term loan.
- The same interest will be charge for loans that are already sanctioned under this scheme.
- The recipient has to submit the copy of marks sheet after every term or semester to the SCA.
Collateral security or guaRANTOR
For loan of upto Rs.4 lakhs, no collateral security requires .
For loan of upto Rs.7.5 lakhs, a third party guarantee would be require.
In exceptional cases, third party guarantee will be waive if the officer granting the loan is satisfies with the net-worth/means of parents who will be executing the documents as “joint borrower”.
For loan above Rs.7.5 lakhs, tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments is require.
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