Gujarat Government Study Abroad Loan Scheme 2025 | Eligibility & Benefits

Gujarat Government’s Study Abroad Loan Scheme: Financial Assistance for Higher Education Overseas

The Gujarat Government’s Study Abroad Loan Scheme is a financial aid initiative designed to help economically weaker students pursue higher education abroad. This scheme provides collateral-free education loans of up to ₹10,00,000, making overseas education more accessible to deserving students. With flexible repayment options and lower interest rates, the scheme offers substantial financial relief compared to commercial loans.

Key Features of the Gujarat Study Abroad Loan Scheme

• Loan Amount: Up to ₹10,00,000 without collateral.

• Interest Subsidy: The Gujarat government covers the total interest amount on loans up to ₹10,00,000.

• Moratorium Period: Interest subsidy is available only during the course duration + 1 year.

• Eligibility: Students must have scored 60% or more in Class 12 and belong to the EWS category (family income up to ₹6,00,000 per annum).

• Recognition: The student must have secured admission to a recognized foreign university.

• Exclusions: Students who have already availed benefits under other state or central government subsidy/scholarship schemes are not eligible.

• Scheduled Bank Loans: Only loans taken from scheduled banks are considered under this scheme.

Eligibility Criteria

To qualify for this interest subsidy scheme, applicants must meet the following conditions:

1. Academic Performance: Students must have secured 60% or more marks in Class 12.

2. Financial Background: Must belong to the EWS category (total family income ≤ ₹6,00,000 per annum).

3. Loan Source: The applicant must have taken an education loan from a scheduled bank on or after July 4, 2017.

4. Educational Qualification: The applicant must have passed Higher Secondary Education from either Gujarat Board or CBSE.

5. Institution Recognition: The student must have secured admission to a recognized foreign university for any graduate, postgraduate, diploma, or professional course.

6. Exclusions:

   • Students already benefiting from other education loan subsidy schemes.

   • Those who have dropped out or discontinued their studies.

   • Candidates who have taken a loan exceeding ₹10,00,000 (interest subsidy is applicable only on the first ₹10,00,000).

Benefits of the Gujarat Study Abroad Loan Scheme

• No Collateral Required: The loan is collateral-free, making it accessible to more students.

• Full Interest Subsidy: The Gujarat government covers the entire interest on the first ₹10,00,000 of the loan during the moratorium period.

• Affordable Repayment: After the moratorium, students need to repay only the principal loan amount, significantly reducing financial stress.

• Flexible Courses Covered: The scheme supports graduate, postgraduate, diploma, and professional programs.

Moratorium Period & Interest Subsidy Rules

• Duration: The interest subsidy applies only during the course period + 1 additional year.

• Loan Repayment: After this period, students must start repaying the principal amount.

• Automatic Termination: The interest subsidy will end immediately if:

  • The student drops out or discontinues studies.

  • The student is expelled due to disciplinary actions.

  • The loan exceeds ₹10,00,000 (subsidy is limited to ₹10,00,000 only).

  • The loan is fully repaid before the moratorium period ends.

How to Apply for the Gujarat Study Abroad Loan Scheme

Students interested in availing this loan subsidy scheme can follow these steps:

1. Visit the KCG Website: Navigate to the official Knowledge Consortium of Gujarat (KCG) website.

2. Register Online: Click on ‘Apply Now’, then select ‘Register’ and enter the required details.

3. Login & Fill Application: Log in with the registered email ID, fill out the application form, and upload the necessary documents.

4. Submit to the Bank: Print the application and submit the acknowledgment receipt along with required documents to the scheduled bank.

5. Bank Processing: The bank will forward the loan details to the KCG office for verification and approval.

Final Thoughts

The Gujarat Government’s Study Abroad Loan Scheme is a great opportunity for financially underprivileged students to achieve their dream of international education. By offering interest-free loans up to ₹10,00,000, the scheme ensures that deserving students can study abroad without financial stress. If you meet the eligibility criteria, don’t miss this chance to apply and secure your future!

This government-backed initiative is a significant step towards ensuring that financial constraints do not become a barrier to higher education. Apply today and take a step closer to achieving your global education goals!