**Executive Summary**
This document announces an increase in loan provisions for Scheduled Castes through the National Scheduled Castes Finance and Development Corporation (NSFDC). The Ministry of Social Justice and Empowerment is implementing these credit-linked schemes to promote self-employment and income-generating activities. The maximum loan limit under the Educational Loan Scheme has been revised and increased from ₹10 lakh to ₹40 lakh per unit. This information was given on 04 FEB 2026.
**Key Points / Main Content**
* **Purpose:**
* The Ministry of Social Justice and Empowerment is implementing credit-linked schemes via NSFDC.
* The aim is to promote self-employment and income-generating activities for Scheduled Castes.
* **Eligibility:**
* Available to individuals belonging to Scheduled Castes with an annual family income up to ₹5.00 lakh.
* **Financial Assistance:**
* NSFDC provides loans at concessional interest rates through various schemes.
* Schemes include Micro Finance Scheme, Term Loan Scheme, Educational Loan Scheme, Aajeevika Microfinance Yojana, and Udyam Nidhi Yojana.
* **Project Cost Limit:**
* The existing total project cost limit is ₹50 lakh per unit.
* The maximum loan limit is up to ₹45 lakh under the Term Loan Scheme.
* **Scheme Review and Restructuring:**
* NSFDC has reviewed and restructured existing schemes based on suggestions from review meetings.
* The goal is to rationalize schemes, make them demand-driven, and enhance socio-economic development.
* **Educational Loan Scheme Revision:**
* NSFDC has revised the maximum loan limit under the Educational Loan Scheme, increasing it from ₹10 lakh to ₹40 lakh per unit.
* This revision applies to studies within India and abroad.
**Impact Analysis**
**Stakeholder: Scheduled Castes Individuals and Families**
* **Impact:** Increased access to financial assistance for self-employment, income generation, and education.
* **Action Required:** Review eligibility criteria and apply for relevant schemes through NSFDC.
**Stakeholder: NSFDC**
* **Impact:** Management and administration of revised loan provisions and restructured schemes.
* **Action Required:** Implement the revised Educational Loan Scheme and ensure effective delivery of all schemes.
Key Entities Referenced
National Scheduled Castes Finance and Development Corporation (NSFDC): The corporation through which the Ministry of Social Justice and Empowerment implements credit-linked schemes for Scheduled Castes.
Ministry of Social Justice and Empowerment: The central ministry responsible for implementing the policy.
Educational Loan Scheme: A scheme under NSFDC where the loan limit has been revised.
Scheduled Castes: The target beneficiaries of the loan schemes.
Ministry of Social Justice & Empowerment
INCREASE IN THE PROVISION OF LOANS TO
SCHEDULED CASTES
Posted On: 04 FEB 2026 4:40PM by PIB Delhi
Ministry of Social Justice and Empowerment is implementing a range of credit-linked schemes through
the National Scheduled Castes Finance and Development Corporation (NSFDC) to promote self-
employment and income-generating activities among persons belonging to Scheduled Castes, with an
annual family income of up to ₹5.00 lakh.
NSFDC provides financial assistance in the form of loans at concessional rates of interest under various
schemes, including Micro Finance Scheme, Term Loan Scheme, Educational Loan Scheme, Aajeevika
Microfinance Yojana, and Udyam Nidhi Yojana. These schemes are aimed at supporting entrepreneurship,
education and livelihood creation among Scheduled Caste beneficiaries.
The existing total project cost limit of ₹50 lakh per unit, with a maximum loan limit of up to ₹45 lakh
under the Term Loan Scheme, is considered adequate, keeping in view that NSFDC caters to Scheduled
Caste persons having an annual family income of up to ₹5.00 lakh.
Based on suggestions received during various review meetings held by the Department of Social Justice
and Empowerment, Parliamentary Standing Committees and Consultative Committee meetings, NSFDC
has reviewed its existing schemes. As part of this process, NSFDC has merged or restructured certain
schemes with a view to rationalising the number of schemes and making them more demand-driven and
effective for the socio-economic development of the target group.
Further, based on requirements, NSFDC has revised the maximum loan limit under the Educational Loan
Scheme from time to time during the last five years, increasing it from ₹10 lakh to ₹40 lakh per unit, both
for studies within India and abroad.
[This information was given by the Minister of State for Social Justice and Empowerment, Shri Ramdas
Athawale, in a written reply in the Rajya Sabha today.]
***
S.M
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