educationGujarat State

Interest Subsidy Scheme on Education Loan

Education Department, Government of Gujarat / Knowledge Consortium of Gujarat (KCG)

Provides 100% interest subsidy on education loans availed by meritorious students from scheduled commercial banks for higher education (diploma, degree, master's, or foreign study). Subsidy covers eligible accrued interest during the entire course duration plus one additional year (moratorium period).

Last verified: 2026-10-22

Chandan Charitable Trust is not a government agency. It does not sanction benefits or process applications. Final eligibility, verification and sanction rest solely with the competent government authority.

How the process works

Step 1: Check eligibility
Meritorious Gujarat student securing 60 percentile or more in Class 12, admitted to recognised higher education, with family income up to ₹6 lakh and bank education loan. Secured at least 60 percentile in Class 12 board examination. Annual family income must not exceed ₹6 lakh. Obtained admission in a recognised higher education institution in India or abroad. Education loan sanctioned by a scheduled commercial bank up to ₹10 lakh eligible for full interest subsidy.
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Step 2: Prepare documents
The official source lists the following documents.
Documents needed for this step
- Student's Aadhaar card.
- Class 10 and Class 12 marksheets.
- Current family income certificate issued by competent authority.
- Gujarat domicile / residence proof.
- College admission letter and fee structure.
- Bank education loan sanction letter and disbursement proof.
- Bank loan account statement and interest calculation certificate.
- Student's bank account passbook or cancelled cheque.
Step 3: Apply
Online application via https://kcg.gujarat.gov.in/education_loan Step 1: Check active application window and register online at https://kcg.gujarat.gov.in/education_loan Step 2: Fill personal, academic, admission, bank, and loan sanction details. Step 3: Upload marksheets, income certificate, admission letter, and bank interest certificate. Step 4: Department and lending bank verify loan and interest figures; approved subsidy is credited directly to the loan account.
Step 4: Verification
Scrutiny of marks, income, and bank loan data by KCG and institutional verification.
Step 5: Sanction / decision
Decision authority, as stated by the official source: Knowledge Consortium of Gujarat (KCG), Education Department.
Step 6: Benefit
100% interest subsidy on eligible education loan interest during the moratorium period (course duration + 1 year). Applicable on education loans up to ₹10 Lakh. Relieves student and parents from debt servicing during active study years. Subsidy credited directly into the student's bank loan account.
Step 7: If delayed or rejected
This step has not yet been confirmed from an official source. Please refer to the official portal or the concerned department.
Step 8: Grievance / appeal
Gujarat SWAGAT online grievance portal https://swagat.gujarat.gov.in/

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Interest Subsidy Scheme on Education Loan

Education Department, Government of Gujarat / Knowledge Consortium of Gujarat (KCG)

Last verified: 2026-10-22

How the process works

Step 1: Check eligibility

Meritorious Gujarat student securing 60 percentile or more in Class 12, admitted to recognised higher education, with family income up to ₹6 lakh and bank education loan. Secured at least 60 percentile in Class 12 board examination. Annual family income must not exceed ₹6 lakh. Obtained admission in a recognised higher education institution in India or abroad. Education loan sanctioned by a scheduled commercial bank up to ₹10 lakh eligible for full interest subsidy.

Step 2: Prepare documents

The official source lists the following documents.

Documents needed for this step

Student's Aadhaar card.
Class 10 and Class 12 marksheets.
Current family income certificate issued by competent authority.
Gujarat domicile / residence proof.
College admission letter and fee structure.
Bank education loan sanction letter and disbursement proof.
Bank loan account statement and interest calculation certificate.
Student's bank account passbook or cancelled cheque.

Step 3: Apply

Online application via https://kcg.gujarat.gov.in/education_loan Step 1: Check active application window and register online at https://kcg.gujarat.gov.in/education_loan Step 2: Fill personal, academic, admission, bank, and loan sanction details. Step 3: Upload marksheets, income certificate, admission letter, and bank interest certificate. Step 4: Department and lending bank verify loan and interest figures; approved subsidy is credited directly to the loan account.

Step 4: Verification

Scrutiny of marks, income, and bank loan data by KCG and institutional verification.

Step 5: Sanction / decision

Decision authority, as stated by the official source: Knowledge Consortium of Gujarat (KCG), Education Department.

Step 6: Benefit

100% interest subsidy on eligible education loan interest during the moratorium period (course duration + 1 year). Applicable on education loans up to ₹10 Lakh. Relieves student and parents from debt servicing during active study years. Subsidy credited directly into the student's bank loan account.

Step 7: If delayed or rejected

This step has not yet been confirmed from an official source. Please refer to the official portal or the concerned department.

Step 8: Grievance / appeal

Gujarat SWAGAT online grievance portal https://swagat.gujarat.gov.in/