What you get
Financial Assistance: A loan of the total tuition fee of the entire course or ₹10,00,000/-, whichever is less, will be provided by the Corporation at a simple interest of 4%. | Collateral: | - For loans of total loan amount of ₹7,50,000/- or less for the entire course, a charge of one and a half times the loan amount will have to be registered on the beneficiary's own or relative's property. | - If the total loan amount for the entire course is more than ₹7,50,000/-, the immovable property of oneself or any other relative equal to that total amount will have to be mortgaged in favor of the Corporation. | Loan repayment: | - In case of total loan up to ₹5,00,000/-, the loan amount along with interest will have to be repaid in equal monthly installments over 5 (five) years, 1 year after completion of studies. | - In case of loan of more than ₹5,00,000/-, the loan amount along with interest will have to be repaid in equal monthly installments over 6 (six) years, starting 1 year after completion of studies. | - The loan amount being repaid will be credited first as interest. | - The borrower can repay the loan even before the specified time limit.
Who can apply
Required Paperwork
- Aadhaar Card
- PAN Card
- Income Certificate
- Residence Proof (Domicile)
Common Questions
What is the "Educational Study Scheme"?
The "Educational Study Scheme" is a loan assistance program that provides financial support to students pursuing professional and technical courses by offering loans at a simple interest rate of 4% per annum.
Who is eligible to apply for this scheme?
Any student who has passed Class 12 with at least 60% marks from a school in Gujarat, belongs to the unreserved category, has a family income of [?]6.00 lakhs or less, and has secured admission in an accredited professional course is eligible to apply.
What is the maximum loan amount available under this scheme?
The maximum loan amount available is the total tuition fee of the entire course or [?]10,00,000/-, whichever is lower.
Which courses are covered under this scheme?
The scheme covers professional courses such as Medical, Dental, Engineering, Technology, Pharmacy, Architecture, Homeopathy, Veterinary, Physiotherapy, and Nursing, among others. General courses like BBA, BCom, BA, and BSc are not covered.
Can students studying outside Gujarat apply for this loan?
Students studying outside Gujarat can apply only if they have secured admission in select higher education institutions such as IIM, IIT, NID, NIFT, IRMA, or TISS.
What is the interest rate charged on the loan?
The loan is provided at a simple interest rate of 4% per annum.
When does the loan repayment start, and what is the repayment period?
The loan repayment starts one year after the completion of the course. Loans up to [?]5,00,000/- must be repaid in equal monthly installments over five years, while loans above [?]5,00,000/- must be repaid over six years.
Can a student repay the loan before the scheduled repayment period?
Yes, the borrower can repay the loan before the stipulated period without any penalties.
What happens if a student drops out or fails to complete the degree?
If a student drops out or fails to complete the degree within the stipulated time, the entire loan amount must be repaid immediately, and the interest subsidy will not be available.
Are there any special provisions for widows and orphans?
Yes, priority is given to widows and orphans when sanctioning loans under this scheme.