Gujarat Education Loan Interest Subsidy Scheme (ISEL) 2026 Apply Online at isel.guj.nic.in

Gujarat Education Loan Interest Subsidy Scheme (ISEL) Apply Online: Gujarat government's Education Department runs Interest Subsidy Scheme on Education Loan for students who are not covered under Mukhyamantri Yuva Swavalamban Yojana. Eligible students get 100% interest subsidy on their education loan for the moratorium period, which is course duration plus one extra year, on loans up to ₹10 lakh. Online registration for this scheme is now done through a new dedicated portal, isel.guj.nic.in, which has replaced the earlier kcg.gujarat.gov.in/education_loan/ page.

This support is meant for bright students from families with limited income who need a bank loan to study further. Anyone with family income up to ₹6 lakh a year from all sources, and who scored 60 percentile or more in class 12th, can apply, provided the loan was taken from a scheduled bank on or after 4 July 2017.

Interest Subsidy Scheme on Education Loan (ISEL) Apply Online Process

New Registration on isel.guj.nic.in

Application for ISEL scheme moved to a new website in recent years. Students applying for the first time need to complete a fresh registration, while those who already have a loan running from an earlier year need to file a renewal application on the same portal. Below is the process for a new registration.

STEP 1 - Open a browser and go to official ISEL portal at isel.guj.nic.in.

STEP 2 - On homepage, click on "New Student Registration" if applying for the first time, or "Student Login" if renewing an existing application.

STEP 3 - Enter personal details such as full name, email ID, mobile number, Aadhaar number, HSC or Diploma passing year, stream chosen, and family income, then set a username and password and click "Register".

STEP 4 - After account is created, log in and fill education loan section with bank name, loan account number, sanctioned loan amount, and course details, then upload required documents.

STEP 5 - Recheck all entries, submit form, and download acknowledgement receipt. Carry this receipt along with required documents to branch of scheduled bank that sanctioned loan, for verification.

Screens shown here are from earlier design of application form. Overall information asked, such as personal details, HSC details, income details, and loan details, stays about same on new isel.guj.nic.in portal.

Renewal Application

Students who already got interest subsidy last year and still have loan running need to apply for renewal rather than fresh registration. Renewal is also done on isel.guj.nic.in using same student login, where bank statement covering latest financial year has to be uploaded again along with an updated acknowledgement receipt from bank.

Objective and Benefits of ISEL Scheme

Interest Subsidy Scheme on Education Loan was designed for students who could not get support under Mukhyamantri Yuva Swavalamban Yojana. It covers courses at graduate, post-graduate, diploma and professional level, taken up at recognised universities in India or abroad. Once approved, full interest amount on a loan up to ₹10 lakh gets credited into applicant's bank loan account at end of March every year, for moratorium period, which runs through course duration plus one more year after it ends. This is not a scheme to arrange a fresh loan, only interest support on a loan already taken from a bank.

Eligibility Criteria for ISEL Scheme

All applicants must fulfil following conditions to become eligible for this scheme.

• Passed class 12th from a recognised board with 60 percentile or more. Candidates who passed before percentile system started may apply on percentage basis instead.
• Family income from all sources not more than ₹6 lakh in a year.
• Loan taken from a scheduled bank on or after 4 July 2017, for graduation, post-graduation, diploma or other professional courses in India or abroad.
• Diploma students who joined after class 10th and later moved to graduation or post-graduation can also apply on basis of CGPA or percentage.
• Not receiving benefit under Mukhyamantri Yuva Swavalamban Yojana or any other government interest subsidy scheme for same loan.

Students who left studies midway or were expelled from institution for disciplinary reasons are not eligible for this scheme.

Documents Required

Following documents are generally asked for while applying and during verification at bank branch.

• Income certificate from Mamlatdar, TDO or equivalent authority, along with income tax return copy, or a self-declaration if applicant is not liable to pay income tax.
• Class 12th mark sheet showing percentile or percentage secured.
• Admission proof from university or institute, along with course name and duration.
• Loan sanction letter and bank loan account statement from scheduled bank.
• Aadhaar card and self-declaration confirming no benefit taken from any other government scheme for same loan.

Important Points to Remember

A few rules apply throughout loan tenure. Subsidy is only for moratorium period, so once this period ends, interest on remaining loan has to be paid by student as per normal bank terms. If a student stops studying midway or leaves course, interest subsidy is stopped immediately. In case loan itself gets cancelled or repaid early by bank, subsidy also closes automatically. Students studying abroad need to give power of attorney to a parent, since only father or mother can sign loan documents on applicant's behalf during process, and authorisation given to anyone else is not accepted. Every applicant may also be called for in-person document verification, so it helps to keep original documents ready.

Download Guidelines and Useful Links

Complete rules and application instructions for ISEL scheme are published on official portal itself. Government Resolutions, document formats, and list of scheduled banks accepted under scheme are available under separate sections on isel.guj.nic.in, along with a notice board that carries latest deadline for fresh and renewal applications each year. Students can also write to isel.kcg@gmail.com or call 9909039380 for help with application.

FAQ's

What is Interest Subsidy Scheme on Education Loan?

It is a Gujarat government scheme that pays 100% interest on an education loan taken by a student, for moratorium period. This means interest amount that a bank would otherwise charge during study years and one year after gets credited back into loan account.

Who cannot apply for this scheme?

Students already getting benefit under Mukhyamantri Yuva Swavalamban Yojana or any other government scheme for same loan cannot apply again. Those who dropped out of course or were expelled from institution are also not eligible.

Where do I apply for ISEL now?

Application is now done from isel.guj.nic.in, new official portal. Earlier kcg.gujarat.gov.in/education_loan/ page has been replaced by this portal for online applications.

What is maximum loan amount covered under this scheme?

Subsidy is calculated on a loan amount up to ₹10 lakh. If loan taken is larger than this, interest on amount above ₹10 lakh has to be paid by student.

When is subsidy amount credited?

Subsidy amount is credited into applicant's loan account at end of March every year, covering that year's loan interest for moratorium period.

Is this scheme same as getting a new education loan?

No, this scheme only supports interest payment on a loan already sanctioned by a scheduled bank. Students still need to apply for and get education loan approved by bank separately.