EDUCATION LOAN SCHEME OF NSTFDC
“Adivasi Shiksha Rrinn Yojana” (ASRY)
1. To extend loan at concessional rate of interest to the eligible Scheduled Tribe candidates for pursuing professional / technical courses including Ph.D. in India.
2. ELIGIBILITY CRITERIA
i) Student should be from a Scheduled Tribe community.
ii) The annual family income of the student should not exceed Double the Poverty Line (DPL) limit. Present limit is Rs. 81,000/-p.a. for the rural areas and Rs. 1,04,000/- p.a. for the urban areas (this is revised from time to time based on the norms of the Planning Commission of India.
iii) The applicant should have been selected for admission / secured admission for an eligible course in a college / institution recognized by an Indian Government Body.
iv) No other loan is availed by the applicant from any other source for education purpose. An affidavit to this effect shall be submitted by the applicant to the concerned SCA.
3. COURSES COVERED
Education loan may be provided for the professional and technical courses including Ph.D. conducted by colleges / universities approved by UGC / Govt. / AICTE / ICMR etc.
4. EXPENSES CONSIDERED FOR LOAN
Educational Loan is meant to cover expenditure on account of the following:
· Admission fee, Examination fee, Library fee, Laboratory fee & Tuition fee payable to the Institute. Caution deposit, Building fund/refundable deposit supported by Institution bills/receipts subject to the condition that the amount does not exceed 10% of the total tuition fees for the entire course.
· Boarding and Lodging expenses: On actuals as charged by the concerned Government College/ Institute. For private boarding and lodging arrangements, the same would be payable at the rates of the Govt. Colleges / Institutes. However, if the said institute is not having boarding/lodging facilities, payment would be regulated on the rates applicable in the Government hostels in the respective areas.
· Travel expenses, books, stationery, computer, equipments/ instruments etc. essential for completion of the course.
· Insurance premium for student borrower taking comprehensive insurance cover during the currency of the loan.
· Any other expense required to complete the course - like study tours, project work, thesis etc
5. LOAN LIMIT / QUANTUM OF ASSISTANCE
· 90% of the expenditure / deposits for entire duration of the course may be provided by NSTFDC through the State / UT channelising Agencies of NSTFDC (SCAs) subject to the maximum loan of Rs. 5.00 lakh (Rs. Five Lakhs) per eligible family.
· Remaining 10% shall be contributed by the student and/or SCA. Scholarship/ Assistantship shall be treated as contribution from the loanee.
· Amount of scholarship/ other financial assistance payable to student / received by the student would be adjusted against the expenditure payable.
· Beneficiary / SCA contribution shall be brought-in on half yearly / yearly basis as and when disbursements of loans are made.
· More than one student from the same family can avail education loan under NSTFDC scheme subject to overall loan limit of Rs. 5.00 lakhs/family.
6. RATE OF INTEREST
NSTFDC shall charge interest on its share@ 3 % p.a. In turn SCAs may charge interest from beneficiary up-to @ 6%p.a.
7. INTEREST SUBSIDY UNDER CENTRAL SCHEME OF INTEREST SUBSIDY ON EDUCATION LOAN
Interest payable by the student under ASRY of NSTFDC shall be borne by the Ministry of Human Resource Development (MoHRD) , for the moratorium period i.e. course period plus one year or six months after getting job , whichever is earlier .
8. MORATORIUM / REPAYMENT PERIOD
· Moratorium Period:
Moratorium period for payment of interest and repayment of loan shall be the course period plusone year or six months after getting employment, whichever is earlier.
· Repayment :
(i) After completion of the moratorium period, the loan shall be repaid in quarterly installments in a maximum period of five years. However, total period of repayment of loan and moratorium period shall not exceed 10 years from the date of first disbursement of loan by NSTFDC to the SCAs.
(ii) For drop out cases, the repayment shall commence maximum after six months from the date of leaving the institute / college and shall be repaid maximum in 20 quarterly installments.
9. RELEASE OF FUNDS, SUBMISSION OF FUND UTILISATION AND PROGRESS REPORTS
A) Release of funds:
(i) NSTFDC will release funds to the SCAs against availability of State Govt. Guarantee and other conditions of utilization, repayment of existing loan.
(ii) SCAs shall make:
a. Payments due to the Institutes/ Colleges: Upon submission of copy of the demand letter /notice, by the loanee to the SCA, issued by the Institute/ college, SCA shall make such payment directly to the concerned educational institute / College.
b. Payment towards expenditure for valuable items e.g. computer etc. shall be made by the SCA direct to the concerned vender /agency to the extent possible and/or the expenses would be reimbursed to the loanee concerned.
c. The disbursement of loan shall be need based in stages as per the requirement/ demand of the college / institute.
(iii) SCAs shall issue letter of assurance for release of payments to the Institute / vendor in respect of loanee meeting the eligibility criteria, wherever so required.
B) Fund Utilization:
SCAs are to utilize funds within 30 days from the date of disbursement by NSTFDC taking into account the last date for payment of fee etc. as stipulated by the concerned institution / agency.
C) Submission of progress reports:
SCA shall send utilization reports, along with the copy of receipt(s)/ bills /cash memos issued within 90 days from the date of disbursement of loan by NSTFDC to SCAs. The next installment of Educational Loan will be released by NSTFDC to the concerned SCA only upon submission of complete utilization report for the previous installment.
10. REQUIREMENTS TO AVAIL EDUCATION LOAN:
(i) HOW TO APPLY:Eligible student shall apply for loan to the SCA in his/her domicile State / UT, as per the format prescribed by the SCA.
(ii) Documents for which attested copies are to be attached with the Application Form are:
o Tribe Certificate issued by an appropriate authority.
o Income Certificate issued by an appropriate authority.
o School Leaving Certificate in support of Date of Birth.
o Educational Qualifications 10th, 10+2, Graduation & PG.
o Admission confirmation from Educational Institute / college with fee & other charges schedule (yearly / half yearly).
o Identity Card issued by the Educational Institution, if Admission already taken.
o Affidavit : An affidavit to the effect that no other loan is availed by the applicant from any other source for education purpose shall be submitted by the applicant to the concerned SCA.
o Endorsement / Marking on the Degrees / Certificates: Undertaking/ Affidavit on non judicial Stamp Paper shall be given by the loanee to the effect that original Degree/ Certificate when received by him will be submitted to the SCA for endorsement of loan availed.
(iii) NSTFDC Educational Loan shall be admissible to students of the target group who have been selected for admission / secured admission to the courses conducted by colleges / universities approved by UGC / Govt. / AICTE/ ICMR etc. subject to the condition that they have not availed Educational Loan from any other institution.
(iv) Educational Loan shall be sanctioned & disbursed on case to case basis on the satisfaction of the SCA.
(v) SCA is to ensure that the sanction order is issued immediately to the eligible applicant and funds are disbursed timely.
11. MONITORING OF SCHEME
(i) Submission of copy of the result to the SCA: Loanee shall submit copy of the Result Sheet / Certificate of each exam to the concerned SCA during the currency of loan.
(ii) Concerned SCA shall intimate the institute /college about the loan availed and outstanding loan every year.
(iii) Concerned SCA shall mark on the degree / certificate of loan availed and outstanding loan.
12. LOAN FOR INCOME GENERATING ACTIVITIES
(i) Upon completion of the course, the loanees having annual family income up-to DPL limit may apply for loan to the concerned SCA, for undertaking income generating activities for self employment. Each loan would be treated as an independent loan and would be considered as per the prevalent Schemes of NSTFDC.
(ii) Limit when loan for Income Generating Activities is considered with existing Education Loan:
Rs. 10.00 lakh per family in which 10% of total funds requirement is contributed by the SCA as Margin Money/Subsidy and/or Promoter Contribution as per the norms of the respective scheme.
(iii) In case loan for Income Generating Activity is availed, then the outstanding
Education Loan along with interest due, if any, shall be combined with total quantum of loan envisaged for income generating activity. Rate of interest would be charged on such total quantum of financial assistance from NSTFDC for both the loans. Interest on total loan up-to Rs. 5.00 lakh per family shall be charged by NSTFDC @ 3% p.a. from the SCA and in turn they may charge interest @ 6 % p.a. from the loanee. For total combined loan (for income generating activities and education loan) above Rs.5.00 lakh interest by NSTFDC shall be charged @ 5 % p.a. from the SCA and in turn they may charge interest from the loanee’s up-to 8% p.a.