Reimbursement of interests paid by Hindu students over NMFDC rate

Hindu  Students whether members of NSUI or ABVP or SFI get student loans from commercial banks at interest rates ranging from 7.5% per annum to 16%per annum.. The State Bank of India gives student loans to Hindu students from 7.5% per annum to 10.05% per annum (floating rate) as in August 2022 depending upon courses selected and Colleges. Term loans are granted to students for pursuing higher education in India or abroad where admission has been secured, for loan up to Rs 7.5 lakh wherein parent/guardian has to be co-borrower, and for loans above Rs 7.5 lakhs parents/guardian as co-borrower and tangible collateral security. Period of repayment of principal and interest shall be not more than 15 years, payment will start one year after completion of course. For taking loan above Rs 4 lakhs Hindu student has to pay margin money at 5% for studies in India and 15% for studies abroad, deposit property documents as tangible collaterals. Different Banks charge their own rates of interests plus processing fees plus margin money etc. The accrued interest during the moratorium period and course period is added to the principle and repayment is fixed in Equated Monthly Installments (EMI).

But a minority student gets student loan at 3% per annum interest (fixed) from the National Minorities Development and Finance Corporation under the Union Ministry of Minority Affairs up to Rs 15 lakhs for studies in India and up to Rs 20 lakhs for studies abroad under the PADHO PARDESH Scheme. Parents annual income should not be more than Rs 6 lakh. The Government of India bears the interest for the moratorium period (course period) for studies abroad. There appears no requirement of margin money and tangible collaterals for such minority students.  For full details visit , and However interest rates and team of student loans keep changing from time to time.

There is a Central Sector Scheme of the Ministry of Social Justice & Empowerment to provide interest subsidy to the student belonging to the OBCs and EBCs on the interest payable for the period of moratorium for the Education Loans for overseas studies.

The UPA Government led by Dr Man Mohan Singh  directed that fees of all minority students admitted in top 70 institutions of India such as IITs, IIMs etc shall be paid by the Union Government. All similarly placed Hindu students who wish to get such fees paid by them to be refunded to them should register themselves on portal of this foundation so that suitable representation may be submitted to the Union Government on their behalf. Download List of Institutions  

Such unequal treatment to Hindu students is a great injustice being done to them which should be stopped and student loans to similarly placed all Hindu students should be given at NMFDC rates as Hindu students cannot be treated less favorably than minority students. The Foundation on behalf of Hindu students who enroll on this portal will write to concerned authorities to refund interests charged over the NMFDC rates on educational loans taken from April 2014 onwards from any bank. The Foundation may endorse such candidates in parliamentary & assembly elections who promise to get it implemented.

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