Gujarat Government Education Loan Schemes for Studying Abroad

The Government of Gujarat has several initiatives to help students from the state pay for higher education. The Knowledge Consortium of Gujarat (KCG) was set up by the Department of Education to facilitate different opportunities. If you are a resident of Gujarat exploring higher education overseas, read on to learn more about the schemes available from the Government of Gujarat for study abroad.¹

Gujarat Government Loan Schemes for Studying Abroad

The KCG has taken up several initiatives for education within India and abroad, such as the Mukhyamantri Yuva Swavalamban Yojana (MYSY), which primarily supports students pursuing their studies within India.²

For students from Gujarat that are exploring their higher studies outside India, there are two main government schemes to consider:

1. Interest Subsidy Scheme (ISS) on Education Loan.
2. Gujarat Loan for Study Abroad (available for SEBC).

Let’s look deeper into each and how students, who are residents of Gujarat, can qualify for support when pursuing their education abroad.

Interest Subsidy Scheme (ISS) on Education Loan

The Gujarat Government offers Interest Subsidy Scheme on Education Loan through the Knowledge Consortium of Gujarat initiative.

Although this scheme is available for higher studies within India as well, this scheme can also be used by students exploring education loans to study abroad, and have not qualified for the MYSY.³

This scheme provides interest subsidies on education loans for the moratorium period to qualifying students. It's available for graduate, post-graduate, diploma, and professional courses. The maximum loan amount to be eligible under this scheme is INR 10 lakhs.

How to Apply for the Interest Subsidy Scheme (ISS)

Interested students can apply online on the official KCG portal for interest subsidy and then submit the printed acknowledgment receipt along with the supporting documents for education loan directly to KCG.⁴

Note that to apply for the loan subsidy, students must already possess a valid student visa for the country where they will be studying. Students can contact the KCG helpline at +91 99 0903 9380 or email isel.kcg@gmail.com for further assistance.

Gujarat Loan for Study Abroad (available for SEBC)

The Government of Gujarat and the Director of Developing Castes Welfare offer the Gujarat Loan for Study Abroad loan scheme for qualifying students identifying with SEBC (Socially and Economically Backward Classes) and EBC (Economically Backward Classes) groups.⁵

This initiative is available for students that have already been accepted into a foreign university and are pursuing a graduate degree, diploma, or an MBBS course abroad.

The maximum loan amount is INR 15 lakhs, and the interest rate on the loan is 4% per annum.

Loans above INR 7.50 lakhs require collateral security, which can be fulfilled by Fixed Deposit, mortgage, or property.

As a student, you will have a grace period, or a moratorium, of one year after completing your course before you have to start making monthly repayments towards your loan. You will then have 5 to 6 years to fully pay off your loan, depending on how much you borrow.

How to Apply for the Gujarat Loan for Study Abroad

Qualified students must submit the Videsh Loan Application Form to apply for the Gujarat Loan for Study Abroad scheme. The applicants may be asked to present a caste certificate during the process.

You can contact the Director, Developing Caste Welfare, Government of Gujarat by phone: +91 79 2325 3245.

Eligibility to Apply for Gujarat Government Education Loan Schemes

The students must meet certain requirements to be eligible for the two schemes mentioned earlier:

• The students must be residents of Gujarat.
• Have a minimum score of 60% in 10+2 examinations.
• Have completed their schooling through Class 12 in person. Distance learning students are not eligible.
• Secured acceptance to the university abroad.
• Their annual family income is INR 6 lakhs or less.

Gujarat Government Loan Disbursal Process

The Interest Subsidy Scheme benefit provides a subsidy on the loan's interest and so does not have a direct disbursal process.

The Gujarat Loan for Study Abroad is paid out directly to the student's bank account in India. This payout is done through the Direct Benefit Transfer (DBT) mode, so make sure that the student's Aadhaar card is linked to the Saving Account at your bank.

Students can use this money to pay their tuition fees to the university and transfer the funds to their overseas account to cover their living expenses abroad.

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