Education Loan in Gujarat

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Education Loan in Gujarat

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Brinda Khurana
Brinda Khurana
Updated on:  25 Jul 2024  | Reviewed By: 
Aman 
| 160 | 13  min read

If you're a student in Gujarat considering an education loan for studies within India or abroad, this overview can guide you. In cities like Ahmedabad, Surat, and Vadodara, students typically require around INR 15 lakhs for domestic education and about INR 45 lakhs for international courses. Interest rates for education loans in Gujarat range from 8.5% to 13%, varying by loan type and lender.

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Which Bank is Best for an Education Loan in Gujarat ?

In Gujarat, various banks offer education loans for both domestic and international studies. It's advisable to thoroughly explore the various offerings from these public sector and private sector banks as well as NBFCs to find an education loan that best suits your educational and financial requirements.

 

Leading Banks for Education Loan in Gujarat For Studies in India 

Bank Name  Loan Amount  Processing Fee

State Bank of India 

Up to INR 50 lakh

Nil - INR 10,000+Tax 

Axis Bank 

Up to INR 75 lakh (unsecured) 

Up to 2% of the amount+GST 

ICICI Bank 

Up to INR 1 crore 

Up to 2% of the amount +GST

IDFC First 

Up to INR 30 lakh (unsecured) 

Up to 1.5% of the amount 

UBI 

Up to INR 1.5 cr (secured) 

Up to INR 40 lakh (unsecured)

INR 5000 (refundable) 

HDFC Credila 

Up to INR 40 lakh 

1% + GST 

Auxilo 

Up to INR 65 lakh 

Up to 2% of the sanctioned loan amount 

InCred 

Up to INR 60 lakh

0.75% - 1% of the sanctioned loan amount

BOB 

INR 7.5 lakh - INR 1.5 cr 

1% (max. INR 10,000) 

Check Your Education Loan Eligibility

Leading Banks for Education Loan in Gujarat for Abroad Studies

Bank Name  Loan Amount  Processing Fee

State Bank of India

Up to INR 1.5 cr with collateral 

INR 10,000

Axis Bank

Prime A - INR 1 cr

Prime B - INR 40 lakh 

0.75% on the sanctioned loan amount 

ICICI Bank 

Up to INR 2 cr (secured) 

Up to INR 1 cr (unsecured) 

Up to 0.75% TO 1% + GST 

IDFC First Bank

Up to INR 75 lakh without collateral 

Up to 1.5% of the sanctioned loan amount 

Union Bank of India 

Up to INR 2 cr (secured) 

Up to INR 40 lakh (unsecured) 

INR 5000

HDFC Credila 

Up to INR 75 lakh 

0.5% - 1% 

Avanse 

Up to INR 75 lakh 

1% - 1.5% 

Auxilo 

Up to INR 65 lakh 

0.5% - 1.5% 

InCred 

Up to INR 80 lakh 

1% - 2% 

MPower Financing

Up to 100,000 USD 

5% (adjusted in the loan amount) 

Prodigy Finance 

Up to 100% cost to study 

Up to 5%, added to loan amount*

Bank of Baroda 

Up to 1.5 cr with collateral 

INR 10,000 + GST 

*Note: Upon loan approval, students are required to pay an upfront fee of $100 to receive their sanction letter.

 

Explore Best Banks for Education Loans!

 

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What are the Documents Required to Avail an Education Loan in Gujarat?

Documents Required for an Unsecured Education Loan 

For an unsecured education loan in Gujarat, the following documents are necessary:

 

1. Application Form: Complete with two photographs, signature, and information from the financial officer.
 

2. Student Documents:

  • list items Identity proofs like Aadhar card, PAN card, and passport.
  • list items Admission letter from the educational institution.
  • list items Utility bills for address proof.
  • list items Academic records including 10th, 12th, degree/diploma mark sheets.
  • list items Competitive exam scores like IELTS, TOEFL, GRE, GMAT.
  • list items Gap certificate and work experience letter, if applicable.  
  •  

    3. Co-applicant Documents:

  • list items For salaried: Recent salary slips, bank statements, company ID, Form 16, and ITR for the last two years.
  • list items For self-employed: Recent ITRs, bank statements, balance sheet, profit and loss account, and proof of business address.  
  •  

    4. Other Required Documents

  • list items A letter stating the co-applicant's responsibility for any additional loan expenses.
  • list items Bank statements showing the financial activities of the student and co-applicant.
  • list items Invoices for additional expenses like laptops or travel if covered by the loan.
  • list items Receipts for any advanced payments and statements of any previous loans.
  • list items Letters on Rs. 100 stamp paper explaining any gaps in education or employment, and explaining the absence of co-applicant's ITR if applicable.  
  • Check Your Education Loan Eligibility

    Documents Required for an Secured Education Loan 

     

    For a secured education loan in Gujarat, the borrower must provide detailed documentation to confirm the collateral being used. This includes:
     

    1. Title Deed: Proof of ownership of the property being used as collateral.
     

    2. Legal Documents: Registered sale agreement, gift deed, or will that proves property ownership.
     

    3. Original Receipt: For the registration of the agreement mentioned above.
     

    4. Allotment Letter: From a government authority like Gujarat Industrial Development Corporation (GIDC).
     

    5. Ownership History: Documents spanning 30 years that show the transfer of ownership, including an extract of the controlled document (EC).
     

    6. Current Property Status: Latest property tax bill and electricity bill for the property.
     

    7. Building Approval: Copy of the municipality-approved building plan or plot layout.
     

    These documents are crucial for securing the loan as they provide the lender with security against the loan amount.

    Acceptable collaterals in Gujarat for education loans

    1. Immovable Properties: Houses, flats, and land can be used as collateral. Required documents include proof of ownership and an appraisal to verify the property's value and condition.
     

    2. Commercial Properties: Accepted by private banks as collateral, although they typically demand a higher collateral value in relation to the loan amount due to perceived higher risks compared to residential properties.
     

    3. Agricultural Lands: Legally permissible as collateral. Applicants need to provide an affidavit confirming that their primary income source is agriculture to qualify.
     

    4. Financial Securities: Fixed deposits (FDs), insurance policies, and government bonds are also acceptable. For FDs, the principal value is considered; for insurance policies, the surrender value; and for government bonds, the face value. Note that these assets often require a higher collateral margin than physical properties.
     

    Avoid Loan Letdowns: Know What Knocks Your Education Loan Off Track!

    Calculate your Education Loan EMI

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    Education Loan Interest Rate in Gujarat For Studies in India

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 8.30% 

    0.60% Business strategy discount 0.50% - for female students 

    0.50% - Rinn Raksha 

    Axis Bank 

    Starts from 11.5% 

    0.5% - 2% 

    ICICI Bank 

    Starts from 10.5% -11% 

    0.5% - 2% 

    IDFC First 

    Starts from 8.5% - 10% 

    0.5% - 2% 

    UBI 

    Starts from 11.15% 

    0.5% for female students

    1% if the SI is paid in full 

    HDFC Credila 

    Starts from 10.25% - 12.75% 

    -

    Auxilo 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    InCred 

    Starts from 11% - 13.5% 

    0.5% - 2% 

    BOB 

    Starts from 8.85% 

    0.5% 

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    Education Loan Interest Rate in Gujarat For Studies in Abroad 

    Bank Name  Interest Rate  Interest Rate Concession 

    State Bank of India 

    Starts from 10.15% 

    0.5% concession in interest for female students 

    0.5% - Rinn Raksha 

    Axis 

    9.99% - 12.5% 

    -

    ICICI 

    10.25% - 12.5% 

    -

    IDFC First 

    9.5%-11% (secured) 

    11%-13% (unsecured) 

    -

    UBI 

    9.25% - 9.75% 

    -

    HDFC Credila 

    10.25% - 12.75% 

    -

    Avanse 

    10.75% - 13% 

    -

    Auxilo 

    11.5% - 13% 

    -

    InCred 

    11.85% - 13.25% 

    -

    MPower 

    12.99% - 15.99% 

    -

    Prodigy 

    11.5% - 13.5% 

    -

    BOB 

    9.7% (fixed) 

    0.20% concession in interest for female applicants of non-premier institutes

    Verify your eligibility for an education loan with GyanDhan today! Simply visit the GyanDhan website, use their loan eligibility tool, and receive instant feedback on your options. 

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    What is the Eligibility Criteria to Avail an Education Loan?

    To qualify for this education loan scheme, applicants must meet specific eligibility requirements:
     

    1. Parental or Guardian Representation: A parent or guardian must act as the co-borrower for students who are minors, ensuring legal and financial responsibility.
     

    2. Joint Loan Agreement: The loan will be issued in the names of both the student and the parent/guardian, linking both parties to the financial commitment.
     

    3. Admission Through Merit: The student must have secured admission to a recognized institution either in India or abroad, based on merit through a competitive selection process.
     

    These criteria are designed to ensure that the loan is used for legitimate educational purposes and that there is adequate financial backing to support the student's academic journey.

    Top Benefits of Education Loans—Learn How They Can Empower Your Academic Journey! 

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    Foreign Education Loan By Government Of Gujarat

    The Gujarat government offers education loans up to ₹15 lakhs for students with a family income of less than ₹6 lakhs annually. Loans up to ₹7.5 lakhs require an encumbrance on the borrower's or a relative's property at one and a half times the loan amount. For loans exceeding ₹7.5 lakhs, the borrowed amount must be mortgaged against an immovable property. This scheme is designed to make higher education more accessible to financially underprivileged students in the state.

    Education Loan Scheme By Gujarat Government

    The Gujarat government offers educational loan schemes for students pursuing higher education abroad, managed by the Developing Castes Welfare Department and the Gujarat Unreserved Educational and Economical Development Corporation (GUEEDC). These initiatives reflect the government's commitment to promoting international education and building a skilled workforce. By providing financial support, the government enables students to access global educational opportunities, fostering excellence and contributing to both Gujarat's and India's progress in the international arena.

    Here are the key features of the education loan scheme offered by GUEEDC for students in Gujarat:
     

  • list items Loan amount of INR 15 lakhs at a favorable interest rate of 4%.  
  • list items Eligibility requires a minimum of 60% marks in 12th grade.  
  • list items Students must belong to families with an annual income of less than INR 4.5 lakhs.  
  • Calculate your Education Loan EMI

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    Other Gujarat Government Education Loan Scheme 

    Dr. Baba Saheb Ambedkar loan for foreign education by government of Gujarat

    The Dr. Baba Saheb Ambedkar loan scheme in Gujarat is designed for SC/ST students pursuing higher education abroad. Eligible students must be enrolled in diploma or equivalent technical and professional courses and have secured a visa. To qualify, they must have scored at least 50% in their 12th-grade exams. This scheme aims to facilitate access to international education opportunities for underrepresented students, helping them enhance their professional qualifications on a global stage.

    Central Sector Interest Subsidy (CSIS) Scheme

    The Government of Gujarat's foreign education loan scheme significantly supports students who aspire to study abroad. By providing financial assistance, flexible repayment terms, and a straightforward application process, this initiative opens up international educational opportunities. It not only aids individual students but also fosters the broader development of both Gujarat and India by enhancing the global competencies of its youth.

    Bin Anamat education loan scheme

    The Gujarat government has introduced the Bin Anamat education loan scheme to support economically underserved students who want to study abroad. This scheme provides loans up to INR 20 lakh without requiring collateral or margin money. The interest rates are favorably set at 4% per annum for the first year, increasing to 9% per annum thereafter. This initiative is specifically designed to assist students from underprivileged backgrounds in managing the high costs associated with international education.

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    What are the Documents Required to Apply for Gujarat Government Education Loan for Study Abroad? 

    To apply for an education loan, follow these steps:

     

    1. Application Form: Fill out the application form, sign it, and attach two photographs.
     

    2. Basic Documents:

  • list items For Applicant: PAN card, Aadhar card, and Passport (if international).
  • list items Proof of Residence: Voter ID card, Aadhar card, bank statement, or ration card.
  • list items For Co-applicant: If salaried, 6 months of bank statements; if self-employed, 1 year of business transactions.
  • list items Personal Asset and Liability Statement.  
  •  

    3. Academic Documents: Include 10th, 12th, degree mark sheets, admission proof, fee structure, and standardized test scores like GMAT, GRE, or IELTS along with
    university ranking.
     

    4. Income Documents for Financial Co-applicant:

  • list items If Salaried: Recent three months' pay slips, two years of Form 16, employer's ID card, and two years of ITR.
  • list items If Self-employed: Last three years' ITR, balance sheet, and profit and loss account, along with business address proof.  
  •  

    5. Other Documents: Letter affirming the co-applicant's responsibility for any additional expenses and a joint affidavit in the bank's format.
     

    6. Additional Documents (if applicable): Receipts for advance payments, one-year loan account statement for any pending loans, and a letter explaining any study gaps on a Rs 100 stamp paper.
     

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    What is the Eligibility Criteria to Avail an Education Loan?

    To qualify for this education loan scheme, applicants must meet specific eligibility requirements:
     

    1. Parental or Guardian Representation: A parent or guardian must act as the co-borrower for students who are minors, ensuring legal and financial responsibility.
     

    2. Joint Loan Agreement: The loan will be issued in the names of both the student and the parent/guardian, linking both parties to the financial commitment.
     

    3. Admission Through Merit: The student must have secured admission to a recognized institution either in India or abroad, based on merit through a competitive selection process.
     

    These criteria are designed to ensure that the loan is used for legitimate educational purposes and that there is adequate financial backing to support the student's academic journey.

    Top Benefits of Education Loans—Learn How They Can Empower Your Academic Journey! 

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    Conclusion

    The Gujarat government's education loan initiatives reflect a robust effort to promote accessible higher education both domestically and internationally. These schemes, such as the Bin Anamat and the Dr. Baba Saheb Ambedkar loans, aim to support economically underprivileged and underrepresented students by offering financial aid with low-interest rates and without the need for collateral. These measures are designed not only to alleviate the financial burden of education but also to empower students to contribute to global and local economic developments, making higher education achievable and affordable for a broader segment of society.

     

    In Gujarat and exploring education loan options? GyanDhan is your go-to platform, offering a pathway to secure financing for your higher studies in India or abroad. Our education loan experts help you in securing high loan amounts under favorable terms with a track record of higher loan approval rates. We also assist with pre-visa loan disbursement, crucial for your visa application. Best of all? Our expert, end-to-end service comes at absolutely no extra cost to you. Check your loan eligibility on GyanDhan now and take the first step towards realizing your academic dreams.

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    Frequently Asked Questions 

    Can I get an education loan in Gujarat for part-time or distance learning courses?

    Typically, loans are provided for full-time courses. However, some banks might consider part-time or distance education based on the institution's reputation and course credibility.

    What is the maximum loan amount available under Gujarat's government schemes for education abroad?

    Under schemes like the Bin Anamat, the maximum loan amount can go up to INR 20 lakhs without collateral requirements.

    Are there any specific schemes for SC/ST students in Gujarat?

    Yes, the Dr. Baba Saheb Ambedkar loan scheme provides support for SC/ST students studying abroad, requiring at least 50% in their 12th-grade examinations to qualify.

    What happens if I default on an education loan in Gujarat?

    Defaulting on a loan can negatively impact your credit score and the co-applicant's creditworthiness. It may also lead to legal action to recover the loan amount.

    Can I prepay my education loan in Gujarat without any penalty?

    Most banks allow prepayment of education loans without any penalty after a certain period, typically one year after the completion of the moratorium period.

    Check Your Education Loan Eligibility