Education Loan Affidavit (DSFDC Scheme)
**Sample PDF of the Affidavit is attached at the end.
Why this affidavit is used
This affidavit is required as a declaration and undertaking when applying for an education loan (especially under government-backed schemes like DSFDC for SC/ST/OBC/Minorities/Handicapped). It acts as a legal assurance from the borrower (and co-borrower) that:
- The loan is being taken honestly for educational purposes.
- No other loan for the same purpose has been availed from other government or financial institutions.
- Family income and employment details given are true.
- Assets created from the loan will remain hypothecated to the Corporation.
- False information will lead to loan recovery with interest.
When it is used
- At the time of loan sanction under DSFDC schemes. (Delhi)
- When a student applies for subsidised education loans with government benefits. (Delhi)
- To ensure no duplication of loans for the same purpose.
- As a binding legal undertaking for repayment.
Purpose
- To declare income, family employment status, and eligibility under the scheme. (e.g. Delhi Training Scheme of DSFDC)
- To confirm that no family member has taken a similar loan already.
- To bind the borrower to loan repayment terms under the hypothecation deed.
- To give DSFDC a legal safeguard in case of false information or misuse of funds.
FAQs
-
Q1. Who requires this affidavit?
-
Any student (and co-borrower, usually parent/guardian) applying for a DSFDC education loan.
-
Q2. Why co-borrower signature?
-
Because repayment liability often extends to guardian/parent as guarantor.
-
Q3. What is "hypothecation" here?
-
It means the assets created out of the loan (e.g., books, equipment, course material, and, in some cases, even degree benefits) are pledged as security to DSFDC until the loan is cleared.
-
Q4. Can a student hide another existing education loan?
-
No. If found, the loan gets cancelled and recovery starts with a penalty + interest.
-
Q5. What is the income condition?
-
Family income proof is required since this loan is for economically weaker/minority candidates.
-
Q6. Is this affidavit needed only for DSFDC loans?
-
Mainly yes, but similar affidavits are required in other state financial corporations or scholarship-linked loans.
-
Q7. What happens if repayment is not done?
-
DSFDC can proceed with legal recovery, blacklist the candidate, and block future government aid.
📁 Downloads & Resources
Access related documents and legal forms
| Attachment | Size |
|---|---|
| sample-affidavit-for-education-loan-affidavit (333.04 KB) | 333.04 KB |
AFFIDAVIT
I, ________________________________________ s/o/W/o/D/o/ sh. ____________________ _______________ r/o __________________________________________________________ Do hereby affirm and declare as under:
I, have applied for a loan of Rs. _____________________________ (Rupees _______________________________________________only) for Education Loan for pursuing the course of __________________________________ from __________________________ under the Education loan Scheme of the Delhi SC/ST/OBC/Minorities and Handicapped Financial and Development Corporation Ltd.
- That the Delhi SC/ST/OBC/minorities and handicapped Financial and Development Corporation Ltd. has agreed to sanction a loan of Rs. _______________________ (Rupees ___________________________________ only) for the said purpose.
- That in lieu of the loan Sanctioned and released by DSFDC, I have hypothecated assets created out of the loan fund with the DSFDC on the terms and conditions of the Hypothecation Deed which are binding and acceptable to me.
- That I or any member of my family or dependant on me have not availed the said loan facility under the scheme of this Corporation, Govt. of India, or another financial institution for the said purpose.
- That in the event of any information found false or incorrect, I shall be liable to refund the entire amount of loan along with up-to-date interest to DSFDC in pursuance of the terms and conditions of the Hypothecation Deed etc.
- That neither I nor any other member of my family is employed in Govt./semi Govt./autonomous Body of the central Govt./State Govt.
- That my family income from all sources is Rs. _________________________ per annum.
CO-BORROWER
Deponent
VERIFICATION
I, the aforesaid _______________________________________________, do hereby affirm that the content of the above paragraph is true to the best of my knowledge and belief and nothing has been concealed by me.
CO-borrower
Deponent
Add new comment