Interest Subsidy Scheme on Education Loan

StateCash

At a Glance

Scheme Category

Education & Learning,Scholarships and student finance

Target Beneficiaries

Individual

Brief Description

The scheme "Interest Subsidy Scheme on Education Loan" by the Education Department, Gujarat, aims to provide financial support to students by offering 100% interest subsidy on education loans.

Benefit Type

Cash

Eligibility Criteria

1. The applicant must be a resident of Gujarat. 1. The applicant must be a student. 1. The applicant must have passed HSC (Higher Secondary Certificate) with at least 60 percentile. 1. The applicant must have taken an education loan from a recognized bank for pursuing higher education in India or abroad. 1. The applicant must have a family income not exceeding ₹6,00,000/- per year.

Application Mode

Online

Application Process

> Registration Process: Step 1: Visit <nis:link nis:type=webUrl nis:id=slugId nis:text="https://isel.guj.nic.in" nis:value=https://isel.guj.nic.in/ nis:enabled=true/> and register using your mobile number and email ID. Step 2: Log in with OTP and change the password. Step 3: Enter name, Aadhaar number, Ration Card number, and enrollment details correctly. Step 4: Provide parent/guardian contact details and complete registration. > Application Process: Step 1: Log in to <nis:link nis:type=webUrl nis:id=slugId nis:text="https://isel.guj.nic.in" nis:value=https://isel.guj.nic.in/ nis:enabled=true/> and click “Apply.” Step 2: Enter course details and fill out the online form. Step 3: Upload all required documents in the specified format. Step 4: Visit the designated help center within 7 days for document verification and submit the application set and collect the acknowledgement receipt. (For students abroad – parent/guardian with Power of Attorney signs and submits documents). > Contact Us: Kcg E-Mail Id: isel-kcg[at]gujgov[dot]edu[dot]in Helpline No: 9909039380 (10:30 AM to 6:00 PM)

Required Documents

For Fresh Application:
Passport Size Photograph (Max 50 KB).
Signature (Max 50 KB).
Marksheet of Standard 12 / Diploma.
Aadhaar Card.
Ration Card.
Income Certificate (Certified by Talati-cum-Mantri / Mamlatdar / TDO).
Proof of Residence (Passport / Driving License / Bank Statement / Ration Card / Telephone Bill / Electricity Bill / Voter ID – any one).
Copy of Education Loan Agreement (Signed and Stamped by Bank Manager).
Copy of Education Loan Sanction Letter (As per KCG format, signed and stamped by Bank Manager).
Copy of Education Loan Disbursement Letter (As per KCG format, signed and stamped by Bank Manager).
Statement of Education Loan Account from first withdrawal date till current date (Signed and Stamped by Bank Manager).
Bank Interest Certificate (Signed and Stamped by Bank Manager).
Copy of First Page of Savings Account Passbook / Bank Statement / Cancelled Cheque (Any one).
Admission Letter (On College/University Letterhead with Signature and Stamp).
Fee Receipts of First Year / First Two Semesters.
Self-Declaration Certificate stating “No benefit from other scheme” (As per KCG format available on website).
Passport Copy (Only for Students Studying Abroad).
Visa or Visa Letter Copy (Only for Students Studying Abroad).
Power of Attorney (Only for Students Studying Abroad).
For Renewal Application:
Aadhaar Card.
Ration Card.
Income Certificate (Certified by Talati-cum-Mantri / Mamlatdar / TDO).
Statement of Education Loan Account (From first withdrawal date till current date, signed and stamped by Bank Manager).
Copy of Education Loan Disbursement Letter (As per KCG format, signed and stamped by Bank Manager).
Bank Interest Certificate (Signed and Stamped by Bank Manager).
Marksheet of All Passed Years / Semesters.
Fee Receipts of All Years / Semesters.

FAQs

What is the objective of the "Interest Subsidy Scheme on Education Loan"?

The "Interest Subsidy Scheme on Education Loan" is a financial assistance initiative launched by the Education Department, Government of Gujarat, which provides 100% interest subsidy on education loans up to ₹10,00,000 during the moratorium period, covering the study period and one year after completion of the course.

Who is eligible to apply under the "Interest Subsidy Scheme on Education Loan"?

The applicant must be a resident of Gujarat, must have passed Standard 12th with at least 60 percentile, must have taken an education loan from a scheduled bank for higher education in India or abroad, and must have a family income not exceeding ₹6,00,000 per year.

What is considered as the moratorium period under the scheme?

The moratorium period under the "Interest Subsidy Scheme on Education Loan" includes the entire duration of the course for which the education loan is taken plus an additional 1 year after the completion of the course before repayment starts.

What is the maximum education loan amount covered under the scheme?

Under the "Interest Subsidy Scheme on Education Loan," the Government of Gujarat provides 100% interest subsidy for a maximum loan amount of ₹10,00,000/-.

Is the scheme applicable to students studying abroad?

Yes, the "Interest Subsidy Scheme on Education Loan" is equally applicable to students pursuing higher education abroad, provided they fulfill all eligibility criteria.

Can a student who is already availing another scholarship apply for this scheme?

A student who is availing benefits from another scholarship scheme cannot apply for the "Interest Subsidy Scheme on Education Loan".

Is there any requirement for income certificate validity?

Yes, the income certificate submitted under the "Interest Subsidy Scheme on Education Loan" must be valid for the financial year concerned and is considered valid for three years from the date of issue, after which a new income certificate must be obtained and submitted.

Where can an applicant apply for the scheme?

The applicant can apply for the "Interest Subsidy Scheme on Education Loan" only through the official online portal https://isel.guj.nic.in by completing registration, filling the online form, uploading documents, and submitting the application as per the given timeline.

What should the applicant do after submitting the online form?

After submitting the online form under the "Interest Subsidy Scheme on Education Loan," the applicant must visit the designated district help center within 7 days, get all original documents verified, submit one set of copies, and collect the acknowledgement receipt.

Whom can the applicant contact in case of queries?

In case of any query related to the "Interest Subsidy Scheme on Education Loan," the applicant can contact the nearest help center listed on the portal or call the helpline number 9909039380 during working hours, or visit Knowledge Consortium of Gujarat, Ahmedabad before the last date.