Interest Subsidy Scheme on Education Loan
100% interest subsidy on education loans up to ₹10 lakh · Gujarat students · full moratorium period covered
Gujarat's Education Department offers a 100% interest subsidy on education loans up to ₹10 lakh for students from families earning under ₹6 lakh per year. The subsidy covers the entire moratorium period — the full course duration plus one additional year — so students pay zero interest while still studying. Apply online at isel.guj.nic.in.
About This Scheme
Gujarat's Education Department offers a 100% interest subsidy on education loans up to ₹10 lakh for students from families earning under ₹6 lakh per year. The subsidy covers the entire moratorium period — the full course duration plus one additional year — so students pay zero interest while still studying. Apply online at isel.guj.nic.in.
Full official description
The scheme "Interest Subsidy Scheme on Education Loan" by the Education Department, Government of Gujarat, aims to provide complete financial relief to students through 100% interest subsidy on education loans for the entire moratorium period. This includes the study period and 1 additional year after course completion.
Benefits
- 100% interest subsidy on education loans up to ₹10,00,000
- Covers the full moratorium period: entire course duration plus 1 year after completing the course
- Applicable for higher education pursued both in India and abroad
💡 Why Startups Should Care
If you or your team members took education loans for engineering, MBA, or medical degrees, this scheme eliminates the interest cost during your study period and one year beyond — worth checking for renewal applications even retroactively.
Who Can Apply (Eligibility)
- Must be a resident of Gujarat
- Must be a student who scored at least 60 percentile in HSC (Class 12 / Higher Secondary Certificate)
- Must have taken an education loan from a recognized bank for higher education in India or abroad
- Family annual income must not exceed ₹6,00,000
How to Apply
- Visit isel.guj.nic.in and register using your mobile number and email ID.
- Log in with OTP and set a new password.
- Enter your name, Aadhaar number, Ration Card number, and enrollment details.
- Provide parent or guardian contact details and complete registration.
- Log in and click 'Apply', enter course details, and complete the online form.
- Upload all required documents in the specified format.
- Visit the designated help center within 7 days for document verification and collect your acknowledgement receipt.
- For students studying abroad: a parent or guardian with Power of Attorney may sign and submit documents.
- Helpline: 9909039380 (10:30 AM – 6:00 PM) | Email: isel-kcg@gujgov.edu.in
Frequently Asked Questions
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.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Passport-size photograph
- Class 12 or Diploma mark sheet
- Aadhaar card
- Ration card
- Income certificate (certified by Talati/Mamlatdar/TDO)
- Proof of residence (any one: Passport, Driving License, Bank Statement, Ration Card, Utility Bill, or Voter ID)
- Education loan agreement (signed and stamped by bank)
- Education loan sanction letter (KCG format)
- Education loan disbursement letter (KCG format)
- Loan account statement from first withdrawal to current date
- Bank interest certificate
- First page of savings passbook or cancelled cheque
- Admission letter on college letterhead
- Fee receipts for first year or first two semesters
- Self-declaration certificate (no benefit from other scheme)
- Passport copy, visa copy, and Power of Attorney (for students studying abroad)