State Wise Abroad Education Loan Schemes for Indians: Best Options, Eligibility, Applications & More

For decades, the dream of studying abroad felt out of reach for numerous Indian students, not because they lacked talent or ambition, but because they lacked financial backing. While Central Government schemes and interest subsidies have been a source of hope, there’s now a powerful new ally stepping up. State Governments across India are actively bridging the gap between aspiration and opportunity with their special overseas education loan schemes.  

From Gujarat to Tamil Nadu, and Himachal to Rajasthan, several state administrations are launching exclusive education loan schemes designed for students from economically weaker sections, reserved castes (SC/ST/OBC), minority communities, and those without collateral or strong financial guarantors. These initiatives are not just symbolic; they offer funding with interest subsidies, minimal documentation, and no collateral obligations, enabling deserving students to access world-class education with dignity.

This article is your complete guide to state-wise abroad education loan schemes in India. Whether you are from a tier-3 town or a metro suburb, and whether you're a first-generation learner or someone battling social barriers, this piece will help you discover what your home state offers, so your dreams don’t have to wait for resources.

Benefits of taking an Abroad Education Loan from the Indian State Government

When financial obstructions hinder your global education dreams, State Governments are stepping in with solutions that are made for students like you. Some of the notable reasons for opting for a state-sponsored abroad education loan might be the smartest financial decision you make:

• Highly subsidised interest rates, some go as low as 0–4%, with support during the moratorium phase.

• Collateral-free or minimal collateral, ideal for students lacking assets.

• Priority support for SC/ST/OBC/EWS/minority candidates.

• Mandatory grace periods of the course duration, with an addition of 6 to 12 months before repayments begin.

• Covers wider costs, including visa, exam, travel, and living expenses.

• Simplified documentation and processes relative to bank loans with co-applicants.    

So, if you are worried about high bank interest, collateral hassles, or rejections due to CIBIL scores, your State Government might already have your back. Going forward, let’s discuss the top state-specific abroad education loan schemes in India and see what your home state offers.

Top State-Specific Education Loan Schemes for Studying Abroad

This section is going to familiarise you with the best state-sponsored schemes that can power your international education journey. You won't have to explore multiple websites as we have jotted down the important features, who’s eligible, and how much you can borrow.

1. Haryana – NSFDC Loan Scheme for SC (Remodelled under SCFDC)

• Key Features: Nationwide scheme offering abroad education loans for pursuing full-time professional or technical courses. With the lowest interest rate on education loan, the annual interest rates range between 2.5 to 6.5%.

• Eligibility Criteria: Must belong to the Scheduled Caste and meet target-specific state criteria. The annual family income should not exceed INR 3 lakhs.

• Loan Amount: Up to INR 30?lakhs via Haryana SCFDC.

2. Rajasthan – RSCB ‘Gyan Sagar’ & Minority Loans

• Key Features: The RSCB loan scheme covers tuition fees, living expenses and comes with a 1-year moratorium period. Similarly, for the Minority (RMFDC), 90% of expenses are covered with a 3% interest rate. These loans are applicable for professional courses abroad.

• Eligibility Criteria: RSCB: general applicants; RMFDC: recognized minorities under the state government norms.

• Loan Amount: Up to INR 30?lakhs for Minority loans and up to INR 10?lakhs for RSCB.

3. Kerala – Kerala Gramin Bank Abroad Education Loan

• Key Features: Loans offered to meritorious students for foreign study with margin requirements. No margin for loans up to INR 4?lakhs, 15?% margin above that.

• Eligibility Criteria: Open for Indian nationals. For loans up to INR 4?lakhs, no collateral; higher amounts may need a third-party guarantee or property security.

• Loan Amount: Up to INR 20?lakhs.

4. Himachal Pradesh – Mukhya Mantri Gyandeep Yojna

• Key Features: Collateral-free loan up to INR 20?lakh at 1 to 4% interest per annum, with moratorium during your study.

• Eligibility Criteria: Applicant must be a Himachal domicile, and the family income should be 4?lakh per year.

• Loan Amount: Up to INR 20?lakhs.

5. Tamil Nadu – TAMCO Educational Loan Scheme

• Key Features: State-backed loans via TAMCO offer concessional interest with simplified terms. The loan is offered for numerous short-term high skill development courses, professional courses and job-oriented Undergraduate and Postgraduate degree courses.

• Eligibility Criteria: This scheme is open to Tamil Nadu residents who belong to the reserved and economically backwards categories.

• Loan Amount: Up to INR 20?lakhs.

6. Goa – Interest-Free Education Loan (IFEL)

• Key Features: Fully interest-free loan for approved foreign degrees and diplomas at the Undergraduate and Graduate levels. 20?% of the funded corpus reserved for abroad study.

• Eligibility Criteria: Permanent Goa residents enrolling in recognised foreign programs. The maximum age limit is 30, and a 15-year Goa residency is required.

• Loan Amount: Up to INR 16?lakhs.

7. Gujarat – E-Samaj Kalyan Abroad Education Loans

• Key Features: Offers loans to socially and educationally backwards classes (SEBC), scheduled castes (SC), and economically weaker sections (EWS) at a subsidised 4?% interest rate, specifically to those admitted abroad.

• Eligibility Criteria: Must be a Gujarat resident with confirmed foreign admission.

• Loan Amount: Maximum INR 15?lakhs.

8. West Bengal – Student Credit Card Scheme

• Key Features: This Credit card style loan for abroad covers a wide range of expenses. With 4% interest per annum, the repayment tenure is up to 15?years.

• Eligibility Criteria: Applicant must be a West Bengal domicile with 40?years of age or below. They must be enrolled in an accredited program; no income ceiling.

• Loan Amount: Up to INR 10?lakhs.

These are the state-wise schemes for students like you, who dream big but lack traditional support systems. As you evaluate your options as per your residence, remember that you still have a long way to go. If you are ready to explore more, then scroll down to see the documents needed and how to apply seamlessly.

Documents Required for State-Specific Education Loan Schemes for Studying Abroad

After knowing the state-specific education loan schemes that could change your life, the next step is preparation, and that starts with getting your paperwork in order. While every state may have a few minor differences, most of them require a standard set of documents that prove your education loan eligibility, background, and seriousness as an applicant.

Here’s a consolidated checklist of the most commonly required documents across all State Government schemes:

• Proof of Admission Abroad: An offer letter from the University or Institution will be required, or admission confirmation with course and tuition details. 

• Identity & Residential Proof: Aadhaar card, Domicile certificate of your state and Passport are needed.

• Academic Records: Mark sheets and certificates of 10th, 12th, graduation, postgraduation, if applicable, are needed. Test scores of IELTS, TOEFL, GRE, GMAT, and SAT can also be requested.

• Income Certificate: Issued by a competent authority to establish eligibility under EWS, SC, ST, OBC categories, or annual income thresholds.

• Caste/Community Certificate (if applicable): For SC, ST, OBC, Minority applicants claiming special provisions.

• Bank Passbook or Cancelled Cheque: Required for fund disbursement details.

• Affidavit or Declaration (in some states): Confirming you haven’t availed of similar loans previously.

Having these documents ready and well-organised can drastically speed up your approval process and increase your chances of securing the funds smoothly.

Now that you know what’s required on paper, let’s stroll you through how to apply step-by-step, so you don’t miss a beat on your path to a global education.

Application Process for State-Specific Education Loan Schemes for Studying Abroad

Once your documents are in place, the next important step is executing your application strategically and on time. While each state may have its own online portal or nodal agency, most follow a fairly consistent process, so understanding the common framework can save you valuable time and effort.

Here’s a simplified stepwise process to guide you through the application:

Step 1: Visit the Official Scheme Portal

Go to your State’s dedicated education loan or welfare department website. Most states have clearly marked sections for their loan programs.

Step 2: Read the Guidelines Carefully

Before hitting ‘Apply’, go through the eligibility rules, deadlines, and required documents to ensure you qualify and understand the process.

Step 3: Register and Fill Out the Application Form

Create an account on the portal, if needed, and fill in accurate personal, academic, and financial details as requested.

Step 4: Upload Required Documents

Scan and upload all documents in the specified format. Ensure that your income and domicile certificates are valid and recently issued.

Step 5: Submit and Note your Application ID

Once submitted, you will receive a unique application number or reference ID. Keep it safe, as it will be needed for tracking and future communication.

Step 6: Verification and Approval

Your application will go through multiple levels of verification, often by district welfare offices or nodal departments. You may be asked for physical verification or additional proof.

If approved, a sanction letter is issued, followed by disbursement either in a lump sum or in instalments to your bank account or directly to the University.

Being prompt, organised, and accurate at each step can significantly boost your chances of approval without delays or rejections. Now that you are clear on how to apply, let’s wrap this up by talking about why timing matters and how you can make these schemes work in your favour, with help from someone who’s done it before.

State-sponsored education loan schemes are undoubtedly a ray of hope for thousands of deserving students across India. But these schemes are often limited in number, tightly competitive, and come with volatile approval timelines. That’s where Team Élan steps in, not just to inform, but to transform your study abroad journey. If you are unsure about your eligibility, confused about the documentation, or just tired of waiting for unpredictable outcomes, our expert loan team can help you tap into Nationalised Banks, Private Banks or NBFCs, or with no collateral and no co-applicant options, all personalized for your profile.

Don’t let limited quotas decide your future; let team Élan open several more doors with some of the best banks for education loans to study abroad. Connect with Team Élan Overseas Education Loans today and make your global education dream a predictable reality.

FAQs

1. Can I apply for both a state government loan and a bank loan at the same time?

Yes, in most cases, you can apply for both. However, the total sanctioned amount across all funding sources shouldn’t exceed your total education cost. Always disclose existing loans during applications.

2. Do I need to repay the loan if the scheme is interest-free or partially subsidised?

Yes, interest-free doesn't mean repayment-free. You still need to repay the principal amount, usually after a moratorium period post your course completion.

3. How long does it take for a state government loan to get sanctioned?

Timelines vary by scheme and state. Some may take 30 to 90 days due to multiple verification levels. It’s wise to start early and have a backup funding plan ready.

4. What happens if I change my University or country after getting the loan?

You must inform the loan-sanctioning authority immediately. Changes could lead to re-evaluation or even cancellation, depending on the scheme's rules.

5. Can I apply for these schemes if my course starts in less than 30 days?

It may be risky, as most state loan processes are not designed for urgent or last-minute approvals. In such cases, private loan options through Élan may be a faster and safer alternative.