The “Educational Study Scheme”, launched by the Social Justice and Empowerment Department of Gujarat in collaboration with the Gujarat Unreserved Education and Economical Development Corporation (GUEEDC), is a game-changer for students seeking affordable education loans. Designed to support undergraduate and postgraduate students pursuing professional courses, this scheme ensures financial accessibility while maintaining flexibility and low-interest rates.
In this article, we break down everything you need to know about the scheme, including eligibility criteria, benefits, application process, and frequently asked questions.
Key Highlights of the Educational Study Scheme
- Target Beneficiaries: Students from the unreserved category with an annual family income of ₹6,00,000 or less.
- Loan Amount: Up to ₹10,00,000 or the total tuition fee of the course, whichever is lower.
- Interest Rate: A nominal simple interest of just 4% per annum.
- Collateral Requirements: Flexible terms based on loan amount (details below).
- Repayment Flexibility: Early repayment allowed without penalties
Who Can Apply?
To qualify for the Educational Study Scheme, applicants must meet the following criteria:
- Belong to the unreserved category.
- Be a resident of Gujarat.
- Have passed Class 12 with a minimum of 60% marks from a school in Gujarat.
- Annual family income should not exceed ₹6,00,000.
- Priority is given to widows and orphans during the selection process.
Courses Covered Under the Scheme
The scheme supports students pursuing accredited undergraduate and postgraduate professional courses. Eligible institutions include:
- Indian Institutes of Management (IIMs)
- Indian Institutes of Technology (IITs)
- National Institute of Design (NID)
- National Institute of Fashion Technology (NIFT)
- Institute of Rural Management Anand (IRMA)
- Tata Institute of Social Sciences (TISS)
Additionally, students enrolled in recognized universities within Gujarat or other states/UTs are also eligible.
Loan Amount, Collateral, and Repayment Details
Loan Amount:
- Maximum loan available: ₹10,00,000 or the total tuition fee of the course, whichever is lower.
Collateral Requirements:
- For loans up to ₹7,50,000: A charge of one and a half times the loan amount must be registered on the beneficiary’s property or that of a relative.
- For loans exceeding ₹7,50,000: The immovable property equal to the total loan amount must be mortgaged in favor of the corporation.
Repayment Terms:
- Up to ₹5,00,000 Loan: Repayable over 5 years, starting 1 year after completing the course.
- Above ₹5,00,000 Loan: Repayable over 6 years, starting 1 year after completing the course.
- Interest is credited first during repayment.
- Early repayment is permitted without additional charges.
How to Apply – Online Process
Applying for the Educational Study Scheme is straightforward and can be done entirely online. Here’s how:
Step-by-Step Guide:
- Visit the official website of GUEEDC.
- Navigate to the “Training Assistance for Competitive Examinations” section under the Corporation menu.
- Register as a new user by providing your details.
- Log in using your credentials and fill out the application form.
- Upload all required documents (list provided below).
- Review and submit your application. Save the application number for future reference.
- Take a printout of the submitted form and send it along with self-attested copies of all documents to the concerned Deputy Director (Non-Reserved Category) or District Social Welfare Officer via courier, post, or in-person submission.
Required Documents:
- School Leaving Certificate or Birth Certificate
- Aadhaar Card Copy
- Ration Card Copy
- Residence Proof
- Annual Family Income Certificate
- Non-Reserved Category Certificate
- IT Return (if applicable)
- Class 10th & Class 12th Marksheet Copies (or Diploma Certificate)
- Proof of gap between graduation and application date (if applicable)
Frequently Asked Questions (FAQs)
Q1: What happens if a student drops out or fails to complete their degree?
If a student discontinues studies midway or fails to obtain a degree within the stipulated timeframe, the loan becomes due for immediate recovery, and the interest subsidy will no longer apply.
Q2: Are there special provisions for widows and orphans?
Yes, priority is given to widows and orphans during the loan sanctioning process.
Q3: Can I repay the loan before the scheduled period?
Absolutely! Borrowers have the option to repay the loan earlier than the designated timeline without any penalties.
Q4: Is the scheme available for students studying outside Gujarat?
Yes, students enrolled in select higher education institutions across India, such as IITs, IIMs, NID, etc., are eligible to apply.
Why Choose the Educational Study Scheme?
With rising education costs, securing a low-interest loan can significantly ease the financial burden on families. The Educational Study Scheme offers:
- Affordable interest rates (just 4% simple interest).
- Flexible collateral requirements.
- Extended repayment periods tailored to individual needs.
- Priority assistance for marginalized groups like widows and orphans.
By bridging the gap between aspirations and affordability, this initiative empowers Gujarat’s youth to pursue quality education without compromising their dreams.
Final Thoughts
The Educational Study Scheme is a commendable effort by the Gujarat government to democratize access to higher education. By offering financial aid with minimal interest and flexible repayment options, it ensures that deserving students aren’t held back by economic constraints.
For aspiring professionals looking to build successful careers, this scheme serves as a stepping stone toward achieving academic excellence and personal growth.
