Education Loan in Gujarat

✓ Education Loan up to 2 Cr

✓ Featuring an interest rate as low as 8.30%

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Table of content

  1. Best banks for education loan in Gujarat
  2. Education Loan Interest rate in Gujarat
  3. Other Education Loan features offered by Banks or NBFCs in Gujarat
  4. Documents required for availing an Education Loan in Gujarat
  5. Common reasons for Education Loan rejection in Gujarat
  6. Gujarat Government Education Loan Scheme
  7. Why Choose WeMakeScholars for an Education Loan in Gujarat?
  8. Repayment plan for Education loans in Gujarat
  9. Education loan subsidy schemes applicable to students from Gujarat
  10. Higher Education in Gujarat
  11. FAQ's
  12. Need Help? Ask Here!

If you are a student in Gujarat and are thinking about getting a loan to pay for your education in Gujarat or elsewhere in India or abroad, this information will be helpful to you. On average, students in Ahmedabad, Surat, and Vadodara need around INR 15 lakhs to finance their education within India, and around INR 45 lakhs to study abroad. Education loan interest rates in Gujarat can range from 8.5% to 13%, depending on the type of loan and the lender. More information is available below.

Best banks for education loan in Gujarat

For studies in India: 

Bank Name

Scheme Name

Loan amount- Collateral Required

Processing fee

SBI

SBI Scholar Loan Scheme 

Upto 1.5 Crores with collateral 

10K + GST 

BOB

Baroda Education Loan to Students of Premier Institutions

Depends on the university

10K + GST 

Karur Vysya Bank

Education Loan Scheme 

Upto 1.5 Crores with collateral 

10K + GST 

Union Bank

Union Bank India Education Loan

Upto 2 Crores with collateral 

1-2% of the loan amount 

Axis Bank

Education loan for study in India

Upto 40 Lakhs unsecured 

1-2% of the loan amount 

ICICI Bank

Education loan for study in India

Upto 50 Lakhs unsecured 

1-2% of the loan amount 

IDFC First Bank

Education loan for study in India

Upto 50 Lakhs unsecured 

1-2% of the loan amount 

Avanse

Education loan for studying in India 

Upto 60 Lakhs 

1-2% of the loan amount 

Incred

Education loan for studying in India 

Upto 60 Lakhs 

1-2% of the loan amount 

Auxilo

Auxilo education loan for studying in India 

Upto 60 Lakhs 

1-2% of the loan amount 

Credila

Credila education loan for studying in India 

Upto 60 Lakhs 

1-2% of the loan amount 

 

For Foreign studies:

Bank Name

Scheme Name

Loan amount- Collateral Required

Processing fee

SBI

SBI Scholar Loan Scheme 

Upto 1.5 Crores with collateral 

10K + GST 

BOB

Baroda Scholar 

Upto 1.5 Crores with collateral 

10K + GST 

Karur Vysya Bank

Education Loan Scheme 

Upto 1.5 Crores with collateral 

10K + GST 

Union Bank

Union Bank Abroad Education Loan

Upto 1.5 Crores with collateral 

1-2% of the loan amount

Axis Bank

Education loan for studying abroad 

Upto 40 Lakhs unsecured 

1-2% of the loan amount 

ICICI Bank

Education loan for studying abroad 

Upto 50 Lakhs unsecured 

1-2% of the loan amount 

IDFC First Bank

Education loan for studying abroad 

Upto 40 Lakhs unsecured 

1-2% of the loan amount 

Avanse

Education loan for studying abroad 

Upto 75 Lakhs for studying abroad

1-2% of the loan amount 

Incred

Education loan for studying abroad 

Upto 75 Lakhs for studying abroad

1-2% of the loan amount 

Auxilo

Education loan for studying abroad 

Upto 75 Lakhs for studying abroad 

1-2% of the loan amount 

Credila

Credila education loan for studying abroad

Upto 75 Lakhs for studying abroad

1-2% of the loan amount 

 

Funding your education can be tough. We'll make it easy for you with our education loan service

Education Loan Interest rate in Gujarat

For studies in India

Bank Name

Interest rate

Interest rate concession

SBI

Starts from 8.35% 

0.50% - for female students 

0.50% - Rinn Raksha

BOB

Starts from 10.60%

Discounts of up to 2%

Karur Vysya Bank

Starts from 10%

up to 2%

Union Bank

Starts from 11.15%

0.5% for female students

1% if the SI is paid in full 

Axis Bank

Starts from 11%

up to 2%

ICICI Bank

Starts from 10.5%

up to 2%

IDFC First Bank

Starts from 8.5% 

up to 2%

Avanse

Starts from 11% 

up to 2%

Incred

Starts from 11% 

up to 2%

Auxilo

Starts from 11% 

up to 2%

Credila

Starts from 11% 

up to 2% 

 

For Foreign studies

Bank Name

Interest rate

Interest rate concession

SBI

Starts from 8.35% 

0.50% - for female students, 

0.50% - Rinn Raksha

BOB

Starts from 10.60%

upto 2%

Karur Vysya Bank

Starts from 10%

upto 2%

Union Bank

Starts from 11.15%

0.5% for female students

1% if the SI is paid in full 

Axis Bank

Starts from 11%

up to 2%

ICICI Bank

Starts from 10.5%

up to 2%

IDFC First Bank

Starts from 8.5% 

up to 2%

Avanse

Starts from 11% 

up to 2%

Incred

Starts from 11% 

up to 2%

Auxilo

Starts from 11% 

up to 2%

Credila

Starts from 11% 

up to 2%

 

No more stress about education loan funding. Just request a callback and let us help you.

Other Education Loan features offered by Banks or NBFCs in Gujarat

Expenses covered:

In India, students often take out education loans to cover the costs of tuition, exams, and other expenses related to their studies, such as:

  • Hostel fees
  • Books
  • Equipment. 
  • Some loans may also include money for living expenses like housing and food. The lender may have specific rules about how the loan must be used.

Moratorium Period:

The moratorium period is a set amount of time during which the borrower is not required to make any payments on their loan. The length of this period can vary depending on the lender and the terms of the loan, but is usually between 6 and 12 months after the borrower has finished their course of study. During the moratorium period, the borrower does not have to make any loan payments.

Loan Margin:

The loan margin is the percentage of the total loan amount that the borrower must pay out of their own funds. For instance, if the loan margin is 5%, the borrower would need to pay 5% of the total loan amount, while the lender would cover the remaining 95%. Lenders may use the loan margin as a way to reduce their risk if the borrower is unable to make the loan repayments. 

Collateral Margin:

A collateral margin is a percentage of a loan that is secured by an asset that the borrower puts up as collateral in case they are unable to repay the loan. If the borrower defaults on the loan, the lender can take possession of the collateral to cover their losses. Lenders may require a collateral margin as a way to reduce their risk.

Documents required for availing an Education Loan in Gujarat

Documents required for Unsecured Loan in Gujarat

Application form:

To apply for a loan, a borrower must provide two photos, a signed form, and financial information from their officer. These items are necessary for their application to be considered.

Student Documents:

  • The applicant must provide identification documents such as an Aadhar card, PAN card, and passport.
  • A letter of admission from a university is required.
  • Utility bills, including an electricity bill and house tax bill, must be submitted.
  • Academic documents including transcripts from 10th and 12th grade, as well as any degrees or diplomas, are needed.     
  • Scores from exams like IELTS, TOEFL, GRE, and GMAT must be provided.
  • If there are any gaps in the applicant's education, a gap certificate must be submitted.
  • If applicable, a letter verifying work experience should be included. 

Co-applicant Documents:

  • In addition to identification documents, financial documents are also necessary for the application process.
  • For salaried individuals, this includes the last 3 months of salary slips, 6 months of bank statements, a company ID, the last 2 years of Form 16, and the last 2 years of ITR.
  • For self-employed individuals, the required financial documents include the last 3 years of ITRs, 6 months of bank statements, a balance sheet, a profit, and loss account for the last 3 years, and proof of the business's address.

Other Documents: 

  • A letter stating that the co-applicant will be responsible for any remaining costs not covered by the loan must be submitted (a specific format for this letter will be provided by the assigned financial officer).    
  • A manifested standard bank statement with both student's and the co-applicant's information must be provided.  
  • If a loan is being requested to cover expenses such as travel or the purchase of a laptop, an invoice for these items must be included.
  • Receipts for any transactions made in advance should be submitted.
  • If applicable, loan statements from the previous year must be provided.
  • A letter on Rs. 100 stamp paper explaining any gaps in employment or income may be required.   
  • If relevant, a letter explaining the lack of a co-applicant's income tax return must be included.

Documents required for Secured Loan in Gujarat

In addition to the normal documents required for an unsecured loan, a co-applicant may need to provide a basic income certificate if they do not have income tax returns. For a secured loan, the borrower must also provide additional papers as proof of the collateral being pledged.

Additional Documents for Secured Loans for Gujarat

  • Title deed for the property being used as collateral
  • The registered sale agreement, gift deed, or will
  • Original receipt for the agreement listed above
  • Allotment letter from a government authority such as GIDC (Gujarat Industrial Development) 
  • 30 years of documents showing the transfer of ownership of the property or an earlier chain of sale deeds establishing ownership, including an extract of the controlled document (EC)
  • The latest property tax bill and latest electricity bill with the same address as the property
  • Copy of a municipality-approved building plan or plot layout for the property.  

Acceptable collaterals in Gujarat for education loans

  1. In the state of Gujarat, houses, flats, and land may be accepted as collateral for student loans. If you are using an immovable property as collateral for a student loan application in Gujarat, you will need to present all of the required collateral documents. This may include proof of ownership, a property appraisal, and any other documents that are necessary to verify the value and condition of the property.
  2. Private banks may accept commercial properties as collateral, but the collateral margin for these types of assets is generally lower than it is for residential properties. This means that the value of the commercial property must be higher in proportion to the loan amount in order to serve as acceptable collateral.  
  3. In the state of Gujarat, it is legally allowed to use agricultural lands as collateral when applying for an educational loan. To do so, the applicant must provide an affidavit that attests to the fact that all of their income is derived from agriculture at the time the mortgage is created.
  4. Fixed deposits (FDs), insurance policies, and government bonds may be accepted as collateral, depending on their type. For instance, the principal value of an FD is typically considered, while the surrender value is taken into account for insurance policies and the face value is used for government bonds. It is worth noting that the collateral margin for these types of assets is generally higher than for other types of property.
Looking for the best education loan options for your studies? We've got you covered.

Common reasons for Education Loan rejection in Gujarat

In the state of Gujarat, a common reason for loan rejection is a low CIBIL score for the co-applicant. In order to be approved for a loan, most banks require a CIBIL score of above 685 with no major negative issues such as defaulted loans or cheque bounces. If the loan is unsecured, the CIBIL scores of both parents will be checked, but if a property is being used as collateral, only the CIBIL score of one parent (either the father or mother) will be evaluated. 

It is important to maintain a good CIBIL record in order to have a wider range of options and a lower interest rate on loans. Another factor that can affect loan eligibility in Gujarat is the income declared in tax returns (ITR). If an individual's ITR shows a lower income, it may decrease their loan amount eligibility. To avoid this, it is advisable to accurately report income in ITRs if a loan will be sought in the near future. Additionally, unregistered properties, referred to as "file" properties, cannot be accepted as collateral for secured loans.

Gujarat Government Education Loan Scheme

  • Under the education loan scheme implemented by the Government of Gujarat, and under this scheme education loans will not be given, only interest subsidies will be provided for the duration of the course and an additional one year after completion (moratorium period). Beyond this period, the remaining loan interest payments will not be eligible for subsidies under this scheme. This initiative aims to provide financial assistance to students pursuing higher education and to ease the burden of student loan debt.
  • Eligibility criteria that applicants must meet in order to receive interest subsidies. These criteria include: passing the 12th standard with 60% or more percentiles, family income of ₹6.00 lakh or less, admission in recognized universities of India/foreign after passing the 12th standard exam from Gujarat state or Central higher secondary education board, and taking an education loan from a scheduled bank after being admitted to a particular course.
  • The subsidy is available only for up to 10 lacs. If an educational loan is for more than 10 lacs, then interest should be given on only 10 lacs and the rest of the amount should be paid by the applicant.
We make education funding for studying abroad easy and hassle-free.

Why Choose WeMakeScholars for an Education Loan in Gujarat?

Guidance from an Expert: If you are looking for a secured education loan, A relationship manager will be assigned to your case from WeMakeScholars to help you through the process by explaining to you and also expediting the process. 

Rate of Interest Negotiation: Interest rates for an Unsecured loan is usually higher than secured loans, but WeMakeScholars will help you in negotiating a rate of interest up to 2% less than that quoted by the lender.

Government Funding: WeMakeScholars is a government-funded organization by the Ministry of IT under the Digital India Campaign.

Experience in Complex Cases: WeMakeScholars come across multiple complex cases where there are multiple parties involved and need to be worked on a priority basis to get the loan sanctioned on time. WeMakeScholars can proudly say that we have processed education loans for many complicated cases in time.

No Service Charge: WeMakeScholars provides all its services free of cost, and will continue to assist the students further till the loan is completely repaid.

Transparency: WeMakeScholars will keep you updated on the progress of your application and also makes sure that you understand the process completely.

Cashback Provided: WeMakeScholars offers a cashback incentive for students who use the platform to apply for a study loan. The cashback will be applied to the first disbursement of the loan, with a maximum reward of INR 3000.

Looking for an easy and hassle-free way to fund your education? WeMakeScholars got you

Repayment plan for Education loans in Gujarat

Once the moratorium period is over, you will need to start making monthly payments on an education loan without collateral. The repayment term for this loan is 10 years.

As an example, if a student obtains a loan of INR 35 lakh at an interest rate of 11.25% over a 10-year period, they will have to follow a payment plan in which they make monthly payments to pay back the loan.

Repayment schedule

EMI

Interest portion

Loan Outstanding

Principal portion

End of 1st year

58684

37462

21222

3974695

End of 2nd year

58684

34947

23737

3703962

End of 3rd year

58684

32135

26549

3401152

End of 4th year

58684

28989

29695

3062462

End of 5th year

58684

25471

33214

2683643

End of 6th year

58684

21535

37149

2259938

End of 7th year

58684

17134

41550

1786031

End of 8th year

58684

12210

46474

1255972

End of 9th year

58684

6704

51980

663109

End of 10th year

58684

545

58139

0

 

Education loan subsidy schemes applicable to students from Gujarat

Dr. Ambedkar Interest Subsidy Scheme for OBC and EBC Students:

The Ministry of Social Justice and Empowerment introduced this program in order to reduce the amount of interest that students from the OBC and EBC sections of society need to pay during the moratorium period for their education loans. This program aims to provide financial relief to these students during this time.

Eligibility Criteria for the Dr. Ambedkar Interest Subsidy Scheme for OBC and EBC Students:

  • The student must have been accepted into a master's, M.Phil, or Ph.D. program at a foreign institution.
  • The student's family income must be less than INR 8 lakh per year for both the EBC (Economically Backward Class) and OBC (Other Backward Class) categories.
  • OBC category students must have a valid caste certificate.
  • Only loans from scheduled banks that meet the guidelines of the Indian Banking Association will be accepted.

Benefit: During the temporary suspension of payments period of the loan, the interest payments that would normally be due will be waived. This means that you will not have to pay any interest during this time.

Padho Pardesh Scheme

The Ministry of Minority Affairs introduced this program to assist individuals from EWS (Economically Weaker Section) communities who wish to study abroad. This program provides financial support and resources to help these students achieve their educational goals.

Eligibility Criteria for the Padho Pardesh Scheme

  • Loans must be obtained from scheduled banks that adhere to the guidelines of the Indian Banking Association.
  • Students must have been accepted into a master's, Ph.D., or M.Phil program.
  • A government-approved certificate of income is required.
  • The student's family income must be less than INR 6 lakh per year.

Note: The Padho Pardesh scheme, which was a program run by the government of India, was terminated on March 31, 2022. However, students who were eligible for and registered in the program before April 1, 2022, will still be able to receive benefits from it.

Central Scheme for Interest Subsidy (CSIS)

The Ministry of Human Resource Development (which is now known as the Ministry of Education) established the program to offer waivers on the interest payments for student loans taken by individuals from the EWS (Economically Weaker Section) of society. This program was designed to provide financial assistance and support to these students as they pursue their education.

CSIS Eligibility Requirements

To be eligible for this program, students must provide evidence of their membership in the EWS (Economically Weaker Section) of society. They must also be accepted into an approved study program within India, and their family's annual income must not exceed 4.5 lakh rupees. If they meet these requirements, students who took out loans to study in India during the temporary suspension of payments period are exempt from paying interest on their loans under this program.

Benefit: The Central Scheme for Interest Subsidy (CSIS) is a program that offers financial support to students who meet the eligibility requirements and take out loans to finance their education in India during the temporary suspension of the payments period. Under this program, these students are eligible to have the interest on their loans waived.

Higher Education in Gujarat

There are several well-respected educational institutes located in Ahmedabad, Surat and Vadodara that offer a wide variety of courses, including engineering, medical, and degree programs. These institutes are highly regarded and are considered to be some of the top universities in Gujarat.

  • Gujarat University
  • The Maharaja Sayajirao University of Baroda
  • Nirma University
  • Sardar Vallabhbhai National Institute of Technology, SVNIT.
  • Pandit Deendayal Energy University- PDEU (Formerly PDPU)
  • Marwadi University
  • Indian Institute Of Technology–Gandhinagar (IIT–Gandhinagar)
  • Dharmsinh Desai University
  • Navrachana University

Education Loan FAQs

  • How can I get an education loan from the Government in Gujarat?

    The Government of Gujarat will not provide any education loan but does provide an education loan interest subsidy, where you can get a subsidy of up to 7.5 lacs on the interest only during the moratorium period.

  • Which bank is best for an education loan?

    Banks offer a wide range of financial products, but not all of them may be suitable for your specific needs. Choosing an inappropriate product can lead to high-interest rates and other negative consequences. To avoid this, you can request a callback from WeMakeScholars.

  • Which bank provides an education loan easily?

    There are multiple banks in India that provide education loans to students who wish to pursue higher education in India or abroad. Some of the most well-known banks that offer education loans include SBI, BOB, PNB, and Canara Bank. However, the application process for these loans can be quite complicated and time-consuming. To simplify the process and make it more manageable, you can request a callback from WeMakeScholars.

  • Is there 0 interest on an education loan?

    Education loans aren’t interest-free, one way to potentially secure a lower interest rate is by requesting a callback from WeMakeScholars. WeMakeScholars can assist you in identifying loan options that are suitable for your financial profile. It's important to remember that interest rates vary depending on the loan, the bank, and the income level.

  • Who is eligible for an education loan?

    To be eligible for an education loan in India, first, you must be a citizen of India. And you must possess an admission from an institution in India or abroad. Additionally, you will need to have a co-borrower, who will be responsible for repaying the loan along with you. These requirements may vary from bank to bank, you can use the service from WeMakeScholars to find out which bank may be suitable for you.

  • What is proof of income for an education loan?

    For an education loan, lenders will typically want to see some form of documentation that verifies the borrower's income and employment status, as well as the borrower's ability to repay the loan. And WeMakeScholars can provide you with a costume made list of all the required documents.

  • Who is eligible for an SBI education loan?

    The State Bank of India (SBI) offers education loans to students in India who are planning to pursue higher education in India or abroad. Eligibility for an SBI education loan you have to be an Indian citizen and have secured admission in a college or university in India or abroad with a co-applicant or a guarantor, typically a parent or guardian, who will be responsible for repaying the loan if the student is unable to do so.

NEWS

MG Motor India Collaborates with Gujarat Government for Community-Focused Initiatives

MG Motor India has recently announced the signing of two significant MoUs with the Government of Gujarat, aimed at promoting education and welfare services in the region. The first MoU is in partnership with 'Kaushalya, The Skill University,' and forms a crucial part of MG Motors "MG Nurture" program. This initiative seeks to empower and upskill 20,000 students, specifically focusing on electric and connected vehicles. Furthermore, the second MoU with the Gujarat Labour Welfare Board supports MG Motors "MG SEWA initiative, where an ambulance  (Mobile Medicare Unit: MMU) has been provided to enhance welfare services outreach.

The signing ceremony witnessed the presence of eminent personalities, including government officials and directors. Through these community-driven partnerships, MG Motor India reaffirms its commitment to making a positive impact on society, fostering inclusive growth, and transforming lives through education and welfare initiatives.

Last Updated - 31/07/2023

Indian Student Visas Drive Rising Demand for Education Loans in Gujarat

Gujarat is witnessing a growing interest among Indian students to pursue higher education abroad. In the first quarter of the 2023-2024 fiscal year, education loan disbursements in the state increased by 30% compared to the previous year, reaching Rs 364 crore. This surge is largely driven by students aspiring to study overseas.

Indian students are increasingly looking to foreign universities for their undergraduate and postgraduate studies, and universities abroad are welcoming them with more streamlined visa processes.

Both public and private banks are actively promoting their education loan products, making it easier for students to fund their overseas education. They have relaxed loan approval criteria and often collaborate with reputable foreign universities. Students admitted to these universities can secure loans up to Rs 40 lakh without collateral at interest rates below 10%, expanding access to international education.

Banks have adapted their risk assessment standards, giving more weight to academic performance and the reputation of the universities applicants plan to attend, rather than solely relying on parental financials. This shift is making it possible for a wider spectrum of Indian students to pursue their dreams of international education.

Last Updated - 24/10/2023

Our Education Loan team will help you with any questions

Naresh Kumar
WeMakeScholars- supported by IT Ministry, Govt. of India.
Published: | Updated: