Gujarat raises foreign study loan income limit to ₹10 lakh, more students eligible
Synopsis
Gujarat has quietly expanded access to its Foreign Study Loan Scheme by raising the family income ceiling from ₹6 lakh to ₹10 lakh — the first such revision since the scheme launched in 2018-19. With ₹2,450 crore already disbursed to over 16,000 students, the change could open the door to a significant new wave of middle-income applicants chasing degrees in the UK, Australia, Canada, and the US.
Key Takeaways
Gujarat has raised the annual family income ceiling under its Foreign Study Loan Scheme from ₹6 lakh to ₹10 lakh , effective August 2026 .
Eligible students from the unreserved category can borrow up to ₹15 lakh for overseas higher education — the maximum loan amount is unchanged.
Since its launch in 2018-19 , the scheme has supported 16,607 students with total disbursements of ₹2,450 crore .
The scheme covers studies in the UK , Australia , Canada , and the US , among other destinations.
Applicants must submit documentation including an admission letter from a foreign educational institution.
The Gujarat government has raised the annual family income ceiling under its Foreign Study Loan Scheme from ₹6 lakh to ₹10 lakh, widening access for middle-income families seeking financial support for overseas higher education. The revised eligibility criterion was introduced in August 2026, allowing a broader pool of students to tap into state-backed loan assistance of up to ₹15 lakh.
What the scheme offers
Under the scheme, students from the unreserved category who have cleared Class 12 can avail themselves of loans of up to ₹15 lakh to pursue higher education at institutions abroad. The maximum loan amount remains unchanged; only the income threshold has been revised upward. The scheme covers destinations including the UK, Australia, Canada, and the US.
Since the scheme was launched in 2018-19, the state has disbursed a total of ₹2,450 crore in loans to 16,607 students, according to A K Joshi, Managing Director of the Gujarat Unreserved Educational and Economic Development Corporation (GUEEDC), Gandhinagar.
What officials said
'As of today, since the scheme was started in 2018-19, around 16,607 students have benefited from it, which is a very large number. At the same time, a total of ₹2,450 crore has been provided by the Gujarat government in the form of loans for assistance for foreign studies,' Joshi said.
The upward revision means families earning between ₹6 lakh and ₹10 lakh annually — previously outside the scheme's eligibility — can now apply. The government has not altered the maximum loan quantum, keeping it at ₹15 lakh per student.
Beneficiaries on the ground
Pravinbhai, a beneficiary from Ahmedabad, said his son is currently pursuing a master's degree in Brisbane, Australia. 'He has completed one year and one year is remaining. Under this scheme, we received loan assistance of ₹15 lakh, and we are regularly paying the instalments. We will repay the entire loan,' he said.
Expert consultants say the application process requires standard documentation, including an admission letter from a foreign educational institution. Maulik Rawal, Director of Aspire Square Private Limited in Ahmedabad, noted: 'Students with admissions to overseas institutions can avail themselves of the scheme by completing the required documentation and loan process.'
Why the revision matters
India's demand for overseas higher education has grown sharply over the past decade, with outbound student numbers hitting record levels. Gujarat's income ceiling revision acknowledges that the cost of living and tuition abroad has outpaced the old ₹6 lakh threshold, effectively excluding many aspirational middle-class families. Notably, this is the first revision to the income ceiling since the scheme's launch in 2018-19.
With 16,607 students already supported and ₹2,450 crore disbursed, the expanded eligibility is expected to add a significant new cohort of applicants in the coming academic cycle. How quickly the state scales disbursements to meet rising demand will be a key metric to watch.
Point of View
But it does not address the deeper affordability gap — ₹15 lakh barely covers a year of tuition and living costs in the UK, Australia, or Canada. The scheme has reached 16,607 students in seven years, a creditable number for a state-level initiative, yet the per-student cap has not moved since inception even as overseas costs have surged. A higher loan ceiling, not just a wider income door, may be the next necessary step if Gujarat wants this scheme to remain genuinely useful rather than symbolically expansive.
NationPress
22 Sept 2026
Frequently Asked Questions
What is Gujarat's Foreign Study Loan Scheme?
It is a state government initiative launched in 2018-19 that provides loans of up to ₹15 lakh to students from the unreserved category who have cleared Class 12 and secured admission at an overseas institution. The scheme is administered by the Gujarat Unreserved Educational and Economic Development Corporation (GUEEDC) and covers studies in countries including the UK, Australia, Canada, and the US.
What has changed in the Gujarat foreign study loan scheme in 2026?
The Gujarat government revised the annual family income ceiling from ₹6 lakh to ₹10 lakh in August 2026, making students from higher middle-income families newly eligible. The maximum loan amount of ₹15 lakh per student remains unchanged.
How many students have benefited from the Gujarat foreign study loan scheme?
As of September 2026, a total of 16,607 students have received loans under the scheme since its launch in 2018-19, with aggregate disbursements amounting to ₹2,450 crore, according to GUEEDC Managing Director A K Joshi.
Who is eligible to apply for the Gujarat foreign study loan?
Students from the unreserved category whose family's annual income does not exceed ₹10 lakh and who have passed Class 12 are eligible. They must also hold an admission letter from a recognised foreign educational institution to complete the loan application process.
How can a student apply for the Gujarat foreign study loan scheme?
Eligible students must submit the required documents — including a formal admission letter from an overseas institution — to GUEEDC for loan processing. Education consultants in Ahmedabad note that completing the documentation accurately is key to a smooth application.
