The Government of Gujarat has taken a remarkable initiative to introduce education loans for students to study abroad. This education loan scheme aims to provide financial assistance to students from the banking system who wish to pursue master’s, MPhil, and Ph.D. courses in foreign countries. The scheme offers 100% subsidy to economically backward students in Gujarat, enabling them to fulfil their aspirations of studying abroad. These loans cover various expenses such as tuition fees, accommodation, travel, and other related costs.
To avail of the education loan scheme to pursue a master’s, Ph.D. and M.Phil degree for studying abroad, students must meet certain eligibility criteria. These may include:
o The applicants must be permanent residents of Gujarat and hold valid proof of residence.
o The applicants must have passed Class 12 with aggregate marks of 60% from a Higher Secondary Examination Board of Gujarat or the Central Board.
o The annual family income should be less than INR 6,00,000.
o The candidates must have taken admission to a university/college abroad (Acceptance letter from a college/ university abroad).
• Applicants who have taken the benefit of the Central Government/State Government education loan subsidy scheme or any other scholarship scheme are not eligible for this scheme.
Maximum Loan Amount Guaranteed: Up to INR 10,00,000
The following are the other key benefits of foreign education loans by the Government of India:
• Flexible Repayment Options: The loan repayment process is designed to be flexible, taking into account the financial circumstances of the borrowers. Students have a grace period after completing their education before they begin repaying the loan, allowing them to secure employment and settle into their careers.
• Competitive Interest Rates: The education loan scheme offers loans at highly competitive interest rates, making it affordable for students and their families to finance their international education.
• Moratorium Period: The Gujarat Government’s education loan scheme provides a moratorium period (i.e. course period plus one year). After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the students.
The applicants are required to submit the following documents while applying for the Gujarat governent education loan scheme:
• Application form for the loan
• Birth certificate
• A passport-size photograph
• A copy of loan application form
• A copy of loan agreement
• A copy of Aadhaar card
• A copy of visa/visa passed letter
• Residential proof (Passport/Driving license/Aadhaar card/Ration card/PAN card/Electricity bill/Voters Id card)
• Income proof for the family (income tax returns, property proof, etc.)
• Sanctioned letter authorized by bank (in KCG format)
• Copy of certified financial statements of financial statements duly certified by Magistrate or TDO
• A copy of first page of bank passbook (from which the loan has been taken)
• Copy of class 10 and 12 marksheets
• A copy of college/university documents
• A copy of free receipts of institute/university
• Acceptance letter from a university abroad
• Self-declaration certificate for no other scheme benefits taken by the candidate (in KCG format)
• Interest Calculation Sheet
• Self Declaration for Non-IT returns
• Self Declaration of No Other Scheme Benefit Avail
• Interest Calculation Sheet
• Interest Calculation Sheet Filling Example
• Sanction Letter Format
• Disbursement Letter Format