Education Loan Scheme titled “Adivasi Shiksha Rrinn Yojana

The Minister for Tribal Affairs and Panchayati Raj Shri V. Kishore Chandra Deo formally launched Education Loan Scheme titled "Adivasi Shiksha Rrinn Yojana" of National Scheduled Tribes Finance and Development Corporation(NSTFDC) on 03-11-2011. Under the Scheme, NSTFDC would provide loan at concessional rate of interest to the eligible Scheduled Tribes for pursuing higher professional and technical education including PhD. in India conducted by colleges/universities approved by UGC/Govt./AICTE/ICMR etc.

A Scheduled Tribe having annual family income upto Double the Poverty Line would be eligible. The present limit is Rs. 39,500/- p.a. for rural areas and Rs. 54,500/- p.a. for the urban areas. The eligible candidates should apply to the respective State Channelising Agencies of NSTFDC located in his/her domiciled State/UT in the prescribed format along with copies of the requisite documents.

Following are the features of ASRY:

• Loan would cover expenses towards Admission/Examination/Library/ Laboratory/Tuition fee, Boarding and Lodging, Caution Money, Building fund/Refundable Deposit, Books, Stationery items, Computer, Equipments/Instruments, Study Tours, Project Work/Thesis, Insurance Premium for student and any other expense towards completion of course.

• Quantum of assistance: 90% of expenditure/deposits for entire duration of the course subject to a maximum loan amount of Rs. 5.00 lakh (Five lakh rupees) per eligible family.

• Rate of Interest: 6% p.a. chargeable from the beneficiary.

• Repayment: After the moratorium period (Course Period plus one year or six months after getting job, whoever is earlier) within next 5 years subject to maximum period of 10 years.

• Financial Assistance for Income Generating Activities: In order to encourage self employment, provision has been made in ASRY for extending concessional financial assistance after completion of studies for undertaking income generating activities.

• Linkage with Interest Subsidy Scheme of Ministry of Human Resource Development (MoHRD) for educational loans: A scheme of MoHRD provides for full interest subsidy during the moratorium period for economically weaker sections of Society for the approved courses of study. Action has been initiated by NSTFDC for formally linking ASRY with the scheme of MoHRD.

• National Scheduled Tribes Finance and Development Corporation has been set up in April, 2001 as a Government of India Company under the Ministry of Tribal Affairs. NSTFDC has been granted licence under Section 25 of the Companies Act, 1956 (a company not for profit). NSTFDC provides financial assistance at concessional rates of interest to STs for undertaking income generating activities and for procurement and marketing of minor forest produce and other tribal products. The financial assistance of NSTFDC is provided through its State level Channelising Agencies (SCAs), certain Public Sector Banks, certain Regional Rural Banks, National Cooperative Development Corporation(NCDC), etc.