Education Loan for Study Abroad by Gujarat Government

The Gujarat government provides various schemes to help students to pursue their higher education Abroad providing a loan amount of up to 15 Lakhs at an interest rate that starts from 4%. Keep reading to know more about the various schemes such as the education loan scheme to study in India coaching assistance scheme, Food bill scheme, Coaching assistance for graduates scheme and the interest subsidy scheme provided by the government of Gujarat.

The Gujarat government provides loans up to Rs. 15 lakhs for higher studies and it is provided to students whose annual family income is below Rs. 6 lakhs. Loans up to Rs. 7.5 lakhs require an encumbrance of one and a half times the value of the loan amount on the borrower's or a relative's property, while loans over Rs. 7.5 lakhs require the amount to be mortgaged in favor of an immovable property corporation.

In the upcoming sections, we are going to read about various other schemes offered by Gujarat government in order to financially help students in order to pursue their education further.

Education Loan Scheme By Gujarat Government

The Education Loan for India by the Gujarat government provides loans for various courses, including medical, dental, engineering, vocational, nursing, and postgraduate courses in various fields. Loans will be given up to the total tuition fee of the course or Rs. 10 lakhs, whichever is less. The annual family income must be Rs. 6 lakhs or less. Applicants must have achieved 60% or more in class 12th, belong to the non-reserved category, and submit proof of admission to the relevant course. Security for loans depends on the loan amount, with loans up to Rs. 7.5 lakhs requiring an encumbrance and loans above that requiring a mortgage. 

Coaching Assistance Scheme By Gujarat Government 

The tuition assistance scheme does not cover education or tuition fees paid in school or college, but it does cover additional tuition taken outside the school or college. Non-reserved category students who have scored 70% or above in class-10th and are studying in the science stream in class-11th and 12th are eligible for a tuition incentive assistance of Rs.15,000/- per annum. The assistance is available only once every year, and the annual family income limit is Rs.4.50 lakh or less.

Food Bill Scheme By Gujarat Government

This scheme provides financial support to non-reserved category students who are studying in graduate-level medical, dental, technical, para-medical courses and are staying in government/non-aided hostels outside of their taluk, away from their families. Under this scheme, eligible students can receive Rs. 1500 per month for a period of 10 months. The assistance will be given in writing. Additionally, girls studying in 9th to 12th and staying in girls' hostels run by any society/trust/organization will also be eligible for this assistance.

The scheme has an income limit of Rs. 4.50 lakh or less per annum for the family of the applicant. The assistance will be provided to eligible students who do not have access to the educational system in their own taluk and have to travel outside their taluk for their education. This scheme aims to provide financial assistance to such students to help them meet their meal expenses.

Coaching Assistance for Graduate Students By Gujarat Government 

The Training Assistance for Competitive Examination scheme provides assistance to unreserved category students who are undergoing training for competitive exams like UPSC, GPSC, Secondary Service Selection Board, Panchayat Service Selection Board, Indian Railways, Banks, etc. The assistance is provided in the form of Direct Benefit Transfer (DBT) of Rs. 20,000 per student or the actual fees paid, whichever is lower.

To be eligible for the scheme, the student must have scored 60% or more in Class 12th and the annual family income limit should be Rs. 4.50 lakh or less. The training must be undertaken in a recognized/preferred institution.

Interest Subsidy for Graduate Doctor, Lawyer, Technical Graduate By Gujarat Government 

The "Interest Subsidy for Graduate Doctor, Lawyer, Technical Graduate" scheme aims to provide assistance to doctors, lawyers, and technical graduates from non-reserved categories who want to start their own clinic, laboratory, radiology clinic or office. Under this scheme, the beneficiaries will be eligible for a 5% interest subsidy on loans up to Rs.10 lakh taken from a bank.

To be eligible for this scheme, the business should have the necessary registration as per the rules, and the applicant should be a native of Gujarat and belong to a non-reserved category. The applicant's age should be between 18 years to 50 years, and proof of loan taken from the bank has to be submitted. The annual family income limit for this scheme is Rs.6 lakh or less.

Section 1: Application form

• To apply, you need to fill out a form provided by WeMakeScholars financial officer, and submit it with your signature and two photographs.

Section 2: Basic documents for Applicant (student), co-applicant, and/or Guarantor

• Proof of identity: PAN card, Aadhar card (and Passport for international students).
• Proof of residence: Voter ID card, Aadhar card, bank statement, or ration card.
• For co-applicant: If salaried, provide 6 months of bank account statements; if self-employed, provide business transactions of one year.
• Personal asset and liability statement.

Section 3: Academic documents of the applicant

• Submit your 10th, 12th, and degree mark sheets, admit proof, fee structure (I-20 for US, if available)
• GMAT/GRE/IELTS scorecard and the university's ranking you plan to attend.

Section 4: Income documents for financial co-applicant

• If salaried, provide three months of pay slips, two years of form 16, employer's ID card, and Income Tax Return for the past two years. 
• If self-employed, provide the recent three years' ITR, the last three years' balance sheet and profit and loss account, and business address proof.

Section 5: Other Documents

• Include a letter stating that the co-applicant will cover any leftover expenses and a joint affidavit in the bank's standard format provided by the WeMakeScholars financial officer.

Section 6: Additional docs (if applicable)

• If you made any advance payments, provide the receipts. If you have a pending loan, provide a one-year loan account statement. 
• If you had any gaps in your studies, include a letter on a 100 rs stamp paper explaining the situation in the format provided by the WeMakeScholars Financial Officer. 

Gujarat government's Education Loan schemes are suitable for smaller amounts, but for larger sums, it's recommended to consider other options. Public and private banks may offer advantages such as extended repayment periods and flexible repayment choices.

State Bank Of India (SBI) Education Loan In Gujarat

SBI provides education loans of up to 1.5 crores to cover tuition fees, accommodation, travel, and other expenses. The interest rate starts from 8.55%, but it may change based on the loan amount, repayment period, and other factors. SBI also offers flexible repayment options from 5 to 15 years, allowing students to select a repayment period that best fits their financial circumstances.

Bank Of Baroda Education Loan In Gujarat

Bank of Baroda provides education loans up to 1.5 crores for students studying in India or abroad, starting at an interest rate of 9.15 percent, which may differ based on different factors. Repayment options range from 5 to 15 years, with no penalty for prepayment and a one-year moratorium period after completing the course.

Union Bank Of India Education Loan in Gujarat

Union Bank of India provides education loans of up to 2 crores at an initial interest rate of 11.15 percent. The bank also offers flexible repayment options spanning 5 to 15 years and a moratorium period of up to one year after course completion.

Karur Vysya Bank Education Loan In Gujarat 

Karur Vysya Bank provides education loans to students who wish to pursue higher education in India or abroad with a maximum loan amount of 1.5 crores. The loan's starting interest rate is 10.30%, and the bank offers flexible repayment of up to 15 years, with a moratorium period of up to 1 year after completing the course.

You can apply for the above-mentioned schemes offered by the Gujarat government online through the e-SamajKalyan Portal, which has been designed to simplify the application process for economically weaker students from the unreserved community seeking education loans for studies in India or abroad.

Step 1: To initiate the application process, the student must first create an account on the portal by providing basic information, such as name, date of birth, email address, and mobile number.

Step 2: Once the account is created, the student can access the application form, which requires detailed information about themselves, their family, education, and the course for which they are seeking a loan.

Step 3: Upon completing the application form and uploading all the required documents, the student can submit the application online. The portal also enables students to track the status of their application, receive notifications and communicate with relevant authorities.

Step 4: The authorities will review the application and notify the student of their decision. If approved, the student will be required to sign an agreement and provide additional documents, such as bank account and collateral details (if applicable).

Manual Application Process: Some lenders still follow manual application processes, which can consume a lot of time and paperwork, leading to longer processing times.

Longer Processing Times: Approaching a lender directly may result in a longer wait for loan processing, especially if there are credit history issues or errors in the application.

Eligibility Requirements: Different lenders have varying eligibility criteria for loans. By going directly to a lender, you may miss out on other loan options, limiting your choices and making it challenging to obtain the required funding.

Limited Loan Options: By approaching a single lender, you may only be exposed to their loan products, which could prevent you from comparing rates and terms with other lenders, ultimately resulting in higher loan costs.

Expert advice - A financial officer from WeMakeScholars will assess your profile and suggest the best education loan options.

Faster processing time - WeMakeScholars guarantees a standard timeline of 21 working days for public banks and 7 working days for private banks and NBFCs, which is 50% faster than going to the bank directly.

Negotiation assistance - Your financial advisor from WeMakeScholars will negotiate with the lender on your behalf to secure the best education loan deal.

End-to-end support - We offer students support even during repayment, assisting with issues such as sudden increase in interest rates.

Lower interest rates - As a partner of banks, we secure education loans with a lower interest rate of 0.5 to 2% compared to direct bank applications.

Free services - Supported by the IT Ministry under the Digital India Campaign, all our services are free of charge to students.

Digital application process - Unless it is a collateralized loan, the entire education loan process with us is online, saving you multiple visits to the bank for document submission.

Tax benefits - We educate students on tax exemption sections 80C and 80E to fully leverage tax benefits.

Cashback offer - We offer a cashback of ₹3,000 to students who apply through us.