Gujarat Government’s Study Abroad Loan Scheme
Scholarship Amount
About This Scholarship
The Gujarat Government’s Study Abroad Loan Scheme offers a significant opportunity for students aspiring to pursue higher education abroad. This scheme provides an interest subsidy on education loans, making international studies more accessible for eligible candidates. It aims to ease the financial burden on students and their families by covering the interest on a substantial portion of their educational loans.
The subsidy is available for education loans up to ₹10,00,000. If an applicant has secured a loan exceeding this amount, the interest subsidy will be exclusively provided on the initial ₹10,00,000 of the loan. The applicant will be responsible for the interest payments on any remaining loan amount beyond this limit.
Under this scheme, the total interest on the education loan, up to ₹10,00,000, will be directly deposited into the applicant's bank loan account. The interest rate applied will be in accordance with RBI guidelines, and no additional charges will be disbursed to the bank under this scheme.
Key aspects of the scheme include:
• Moratorium Period: The interest subsidy on the education loan is payable only during the moratorium period, which covers the duration of the course plus an additional year. After the moratorium concludes, interest payments on the outstanding loan amount will no longer be covered by this scheme.
• Loan Source: The education loan must be obtained exclusively from a scheduled bank.
• Disbursement: Interest will be disbursed annually to the loan account, based on the student's information provided during the registration process.
• Termination of Subsidy:
• The interest subsidy will be terminated if the student drops out or discontinues their studies.
• It will also cease if the loan is canceled by the bank.
• The interest subsidy automatically ends once the loan is repaid in full.
• Applicants who have already availed benefits from Central or State Government education loan subsidy schemes or any other scholarship are ineligible for this scheme to prevent duplication of benefits.
• Credit Method: The interest subsidy must be credited to the applicant's loan account on an annual basis.
Eligibility Criteria
To be eligible for the Gujarat Government’s Study Abroad Loan Scheme, applicants must meet the following criteria:
• Academic Performance: Applicants must have secured 60% or more marks in their Class 12 examination.
• Economic Status: Students must belong to the Economically Weaker Section (EWS) category, with an annual family income of ₹6,00,000 or less from all sources.
• Existing Loan: Students who have taken an education loan from a scheduled bank on or after 04th July 2017 to study in India or abroad are eligible for this scheme.
• Enrollment: Applicants must have successfully passed the Higher Secondary Examination conducted by either the Board of Secondary Education, Gujarat, or the Central Board of Secondary Education. They must also be enrolled in a recognized university abroad.
Important Notes:
• Covered Courses: The scheme covers all courses of higher education, including graduate, postgraduate, diploma, and professional programs.
• Ineligibility for Other Benefits: Applicants who have already availed the benefits of a Central Government or State Government education loan subsidy scheme, or any other scholarship scheme, are ineligible for this scheme. This is to ensure fair distribution and prevent double-dipping.
• Power of Attorney: If a student is currently studying abroad, a Power of Attorney may be granted to an authorized person to sign required documents on behalf of the applicant at the bank. It is crucial to note that only the student's father or mother can be designated as the Power of Attorney. Authorization granted to any other person will not be accepted.
• Subsidy Termination: Interest subsidy under this scheme will not be available to students who have left their studies midway or have been expelled from the institution due to any disciplinary issue.
Required Documents
To apply for the Gujarat Government’s Study Abroad Loan Scheme, applicants must compile and submit a comprehensive set of documents. It is important to ensure all documents are complete and, where specified, adhere to the prescribed formats.
Required Documents List:
• Application form for the loan
• Birth certificate
• Passport-sized photograph
• Copy of the loan application form
• Copy of the loan agreement
• Copy of Aadhaar card
• Copy of visa/visa approval letter
• Proof of residence, such as:
• Passport
• Driving license
• Aadhaar card
• Ration card
• PAN card
• Electricity bill
• Voter ID card
• Family income proof, such as:
• Income tax returns
• Property proof
• Sanctioned letter authorized by the bank (must be in KCG format)
• Copy of certified financial statements duly certified by a Magistrate or Tehsildar
• Copy of the first page of the bank passbook (from which the loan was taken)
• Copies of Class 10 and 12 marksheets and certificates
• Copies of college/university documents
• Copies of fee receipts from the institute/university
• Acceptance letter from a university abroad
• Self-declaration certificate stating no other scheme benefits have been taken by the candidate (must be in KCG format)
• Interest calculation sheet
Knowledge Consortium of Gujarat (KCG)
Formats for Required Documents:
It is essential that certain documents are submitted in their prescribed formats. These can typically be found on the KCG website:
• Self Declaration for Non-IT returns
• Self Declaration of No Other Scheme Benefit Avail
• Interest Calculation Sheet (an example for filling this sheet is also usually provided)
• Sanction Letter Format
• Disbursement Letter Format
Note: All the documents must be submitted in the prescribed format. A detailed Document Checklist may also be available on the official website for verification purposes.
How to Apply
Eligible applicants must follow a clear application process involving both online submission and coordination with their scheduled bank. Offline applications are not accepted for this scheme.
Here are the detailed steps to apply:
1. Online Application: Applicants must complete the application form on the KCG website.
2. Submission to Bank: After completing the online application, applicants need to submit the acknowledgement receipt along with all the required documents (as detailed in the 'Documents' section) to their scheduled bank from which they have taken the education loan.
3. Bank's Role: Subsequently, the scheduled bank is responsible for sending the necessary endorsement, bank loan details, and interest information to the KCG office for further processing.
For a direct application through the official website, eligible applicants can follow these steps:
• Step 1: Access the application portal on the KCG website.
• Step 2: If you are a new user, click on the 'Register' button (typically found on the right-hand side of the dashboard) and fill in all the required details to create an account. If you are already registered, simply log in using your registered email ID and password.
• Step 3: Once logged in, proceed to fill in all the necessary details accurately in the application form and then submit it.
Remember, timely submission of all required documents to the bank and accurate online application are crucial for successful processing of your application.