Gujarat 6% Interest Subsidy Study Abroad Loan Scheme

Overview

The Gujarat government offers a 6% interest subsidy on loans taken by students to study abroad. This scheme reduces the cost of overseas education by covering a significant portion of the interest payable on education loans obtained from scheduled banks or government financial institutions.

It is available to students from specific reserved and backward class categories who have secured admission to recognized foreign universities.

Objective

The scheme is designed to make foreign education financially accessible for students who belong to economically weaker or socially marginalized communities in Gujarat. By covering 6% of the interest on study loans, it encourages academic ambition and global exposure among deserving students.

Benefits

• 6% interest subsidy on the outstanding study loan for the duration of the course
• Benefit applies during the moratorium period (course duration plus grace period)
• Reduces the effective cost of the loan significantly
• Promotes access to top international universities for Gujarat students

Eligibility

• Permanent resident of Gujarat
• Belongs to a notified backward, SC, ST, or minority category as specified
• Has secured admission to a recognized institution abroad
• Loan must be taken from a scheduled bank or authorized institution
• Family income must be within the ceiling specified by the scheme

Exclusions

• Students from the general (unreserved) category are not eligible
• Applicants who have already availed full interest subsidy under another central or state scheme
• Loans from unrecognized or private moneylenders are not covered
• Study programs not recognized by UGC, AICTE, or equivalent authority

Application Process

1. Apply through the concerned Gujarat development corporation or Social Justice Department
2. Obtain the official application form
3. Attach the bank loan sanction letter and admission proof
4. Submit to the district or state office of the administering body
5. Verification of documents and income status
6. Subsidy approved and credited to the loan account via the bank

Documents Required

• Category certificate (caste or community certificate)
• Income certificate from a competent authority
• Bank loan sanction letter
• Admission letter from the foreign institution
• Passport copy
• Academic certificates
• Bank account and passbook details