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Education Subsidy
Education Subsidy
How many students from Gujarat go to study abroad?
Before moving to the education loan schemes offered by the Gujarat government for studying abroad, let us first take a look at the number of students from Gujarat who go abroad for higher studies. In the year 2019, 3727 students from the state of Gujarat applied for the Primary Australian student visa. Countries such as the USA, The UK, and Canada too receive similar numbers of students from Gujarat. The Gujarat Unreserved Educational and Economical Development Corporation too receives approximately 1182 applications requesting loans for studying abroad.
Why take an education loan?
The numbers above make it quite clear that quite a few students from Gujarat go abroad for higher studies. A substantial percentage of this number apply for an education loan to fund their study abroad dream. But what are the benefits of an education loan? Let us take a look at it below:
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Funds all your study-related expenses - Studying abroad does not come cheap and the cost of studying abroad has been on a consistent rise in the last decade. An education loan funds all the study-related expenses of the students, right from the tuition fee to equipment and books needed for the program, travel and living expenses, and others.
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Build up your Credit score - Students who take an education loan and make timely repayments build up their credit score. This can be helpful for future borrowings.
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Get tax rebates - Education loans from lenders such as public sector banks and private banks make you eligible for income tax rebate under section 80 E of the Income Tax Act of India. This is valid on the interest that is paid on the education loan.
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Keep your personal funds safe for contingencies - Even if you or your parents might be able to fund your higher education abroad, an education loan can help keep your funds safe for emergencies.
Gujarat Government education loan for abroad
Keeping in mind the increasing number of students from Gujarat going abroad for higher studies, the Government of Gujarat has come up with an education loan scheme for studying abroad. The Director, Developing Castes Welfare Department; under the aegis of the Gujarat government sanctions education loans for the needy students. Some salient features of this loan scheme are as follows:
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Students can get education loans of up to INR 15 lakhs
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The rate of interest for this education loan is a mere 4%. This is probably one of the lowest rates of interest offered by any lender in the country.
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Students who have gained admission to a foreign university or college are eligible to apply for this education loan scheme.
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In the financial year 2018-2019, the Government of Gujarat, under this loan scheme, incurred INR 2224 lakhs under this scheme for Socially Economic Backward Castes while the amount incurred under this scheme for Economically Backward Castes was INR 98.50 lakhs during the same period.
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