Education Loan for Study Abroad

“Education Loan for Study Abroad by Gujarat Government”

Education Loan for Study Abroad by Gujarat Government

Studying abroad has become an increasingly popular choice for students in Gujarat, as it provides them with a unique opportunity to experience diverse cultures, gain international exposure, and receive a quality education. Recognizing the importance of supporting such aspirations, the Gujarat Government has introduced an education loan scheme specifically designed to assist students in financing their studies abroad. This article explores the details and benefits of the Education Loan for Study Abroad offered by the Gujarat Government.

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Eligibility Criteria.

To be eligible for the Education Loan for Study Abroad, students must fulfil the following criteria:

Residency: Applicants must be residents of Gujarat, India, with a valid residential proof.

Age: The minimum age for application is 18 years, and the maximum age limit is generally 35 years, although certain relaxations may be provided based on exceptional circumstances.

 Educational Qualifications: Students must have secured admission to a recognized foreign university or educational institution for a relevant course of study.

Co-applicant/Guarantor: A co-applicant or guarantor is required, who should be a parent, guardian, or close relative with a stable income and a good credit history.

Loan Features.

The Education Loan for Study Abroad scheme offered by the Gujarat Government includes the following features:

Loan Amount: The loan amount offered can range from a minimum of INR 5 lakhs to a maximum of INR 20 lakhs, depending on the course, country of study, and the financial requirements of the student.

Interest Rate: The interest rates for the loan are typically competitive and are subject to revision based on prevailing market conditions. The rates are set by the Gujarat Government and are designed to make education loans more affordable for students.

Collateral Requirement: Loans up to INR 7.5 lakhs generally do not require collateral. However, for higher loan amounts, tangible collateral or suitable third-party guarantees may be necessary.

Repayment Tenure: The repayment period for the loan can extend up to 7 years after the completion of the course, allowing students ample time to find suitable employment and stabilize their financial situation.

Application Process.

To apply for the Education Loan for Study Abroad by the Gujarat Government, students need to follow these steps:-

Research and Planning: Students should conduct thorough research on the course, university, and estimated expenses to determine the loan amount required.

Documentation: Gather all the necessary documents, including admission letters, academic transcripts, proof of identity, address, and income details of the co-applicant/guarantor.

Loan Application: Visit the designated bank branches authorized by the Gujarat Government to provide education loans. Submit the application form, along with the required documents.

Loan Approval and Disbursement: The bank will assess the application, including the creditworthiness of the student and the co-applicant/guarantor. Upon approval, the loan amount will be disbursed directly to the educational institution.

Benefits and Support.

The Education Loan for Study Abroad by the Gujarat Government offers several benefits and support mechanisms to assist students:

Flexible Repayment Options: Students have the flexibility to choose from various repayment options, such as the moratorium period, during which only interest payments need to be made, followed by structured EMIs (Equated Monthly Instillments) after course completion.

Competitive Interest Rates: The loan scheme provides students with access to education loans at competitive interest rates, ensuring affordability and minimizing the burden of interest payments.

Moratorium Period: The moratorium period, typically the course duration plus an additional six months, allows students to focus on their studies without worrying about immediate loan repayments.

Loan Subsidy: Under certain circumstances, the Gujarat Government may provide interest subsidies or loan repayment incentives, particularly for meritorious students from economically weaker sections.


The Education Loan for Study Abroad offered by the Gujarat Government is a commendable initiative aimed at empowering students to pursue their dreams of higher education in foreign institutions. By providing financial support and competitive interest rates, the scheme enables students from Gujarat to access global education opportunities and enhance their career prospects. This progressive step by the Gujarat Government serves as an inspiration for other states in India to prioritize and invest in the future of their students, ultimately contributing to the nation’s growth and development.

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