Gujarat Raises Income Cap to ₹10 Lakh for Foreign Study Loans

In a major policy shift aimed at widening access to higher education, the Gujarat government has raised the annual family income cap for its foreign study loan scheme from ₹6 lakh to ₹10 lakh.

The revision, issued by the Social Justice and Empowerment Department, targets students from the unreserved category seeking higher education degrees abroad. Administered through the Gujarat Unreserved Educational and Economic Development Corporation (GUEEDC), the decision opens government-subsidised financial assistance to middle-income households previously excluded by the tighter income ceiling.

Higher Ceiling for Overseas Aspirants

Under the updated framework, eligibility for low-interest loan assistance extends to any student whose total household income does not exceed ₹10 lakh per year. Officials expect the four-lakh-rupee jump to significantly increase the pool of applicants from non-reserved communities who struggle to fund overseas tuition, travel, and living expenses.

The policy change follows a formal proposal submitted by the Director of Developing Castes Welfare in October 2025. Following reviews by the Finance Department and formal executive approval earlier this month, the Social Justice and Empowerment Department formalised the mandate via an official resolution.

Implementation and Existing Terms

While the administrative order took effect on 18 August 2026, the department clarified that all other operational rules governing the Foreign Study Loan Scheme remain unchanged.

The existing terms—including loan amounts, interest concession rates, documentation protocols, and repayment timelines—continue as previously notified. The state government expects local corporation centres across Gujarat to begin processing revised applications under the updated income criteria immediately.