Is GSCC Loan Interest-Free?

GSCC loan is offered by the Department of Higher and Technical Education, Government of Jharkhand. Through the GSCC loan, students get a Rs 15 lakh loan at a subsidised simple interest rate of 4% to eligible students. GSCC loan is not completely interest-free, but you get it at a subsidised rate of interest. The loan aims to promote higher education among students who face financial struggles in continuing their education. The GSCC loan will help them to study further if they meet the requirements.

There is no processing fee for the GSCC loan processing, sanctioning, or disbursement. The maximum loan repayment tenure has been stretched up to 15 years. If you want to know if GSCC loan is interest-free, you need to read this article.

About GSCC Scheme

The Guruji Student Credit Card (GSCC) scheme was launched Jharkhand Government to support students to pursue higher education without financial constraints. Under this scheme, eligible students can avail of education loans up to Rs 15 lakhs at a subsidised 4% simple interest rate, with additional benefits for female students.

Under the Guruji government student credit card scheme, if you have completed Class 10 and Class 12 education from a recognized school in the state of Jharkhand and have secured admission into any of the institutes listed under the scheme, you will be offered educational loans at an annual nominal interest rate of 4%, with no collateral.

Is GSCC Interest-Free?

Is GSCC loan interest-free is what comes to the mind of the students wishing to apply. However, the GSCC loan is not interest-free, as you will get Rs 15 lakh of loan amount at a subsidised rate of 4%. The Guruji Student Credit Card covers institutional fees, hostel expenses, and a portion for non-institutional costs like travel, rent, and study materials. There is also a moratorium on repayment time, which is one year after the completion of the course or employment, whichever is earlier. Apart from 4% simple interest, female students get an additional 0.5% reduction.

The students can use the GSCC loan amount to pay for the tuition fees, hostel/mess, food, lab, library, and examination fees, caution deposit, building fund, refundable deposit, material purchases such as books, computer and equipment, living, food, medical, conference, seminars, competitions, and travel expenses. The scheme covers various types of courses like BA/ B.Sc and professional/ technical courses like engineering ( BTech course )/ medical (MBBS)/ management/ law.

Also Read: How to Apply for Guruji Student Credit Card Yojana Jharkhand?

GSCC Eligibility Criteria

To apply for the Guruji Student Credit Card scheme, you must meet some eligibility conditions. Find below the GSCC eligibility criteria to check if you meet the requirements:

• The GSCC loan can be availed by those who are permanent residents of Jharkhand.
• You need to complete Class 10th to pursue a diploma course and Class 12th from a recognised school in Jharkhand to pursue undergraduate or degree courses.
• The applicant must be pursuing a diploma, undergraduate, postgraduate, PhD, or any higher-education course from a recognised school/ institution/ university within or outside Jharkhand at the time of applying for the GSCC loan.
• The candidate should have secured admission in institutions like IITs, IIMs, IIESTs, ISIs, NLUs, AIIMSs, NITs, XLRI, IISCs, BITS, SPA, NID, IIFTs, ICFAI Business School, etc, within and outside of the state of Jharkhand (within India), which are ranked up to 200 in the overall list or ranked up to 100 in their respective individual category of NIRF Rankings or have been accredited grade either “A" or above by NAAC as per NAAC accreditation at the time of application.
• The applicant must be below 40 years of age at the time of applying for the GSCC scheme.
• This scheme can be availed of only once, so make sure you are not a prior beneficiary.
• You should not have taken a similar kind of loan previously from any State Co-operative Banks, Central Co-operative Banks, District Central Co-operative Banks, or any Public or Private sector Banks for your higher-education course.

GSCC Loan Application Process

The GSCC loan can be applied for by those who meet the eligibility criteria. The detailed Guruji Student Credit Card application process can be found below:

• To apply for the GSCC loan, you need to visit the official website of GSCCS, gscc.jharkhand.gov.in.
• To register yourself, you must click on the “Registration” option.
• Fill in your name, email ID, enter your captcha and verify the OTP.
• Once you have verified, you will get a registration number via SMS.
• For the login process, the candidate needs to enter their user ID, password and captcha.
• You need to click on “Login” and fill out the application form for the Guruji Student Credit Card loan.
• Enter basic details like name, residential address, educational details and other personal information.
• You have to then upload your photograph and signature in the correct format.
• Click on the “Submit” option.

GSCC Loan Process

Read below to find out how you can process the GSCC loan:

• Student MLI (Member lending institution) Selection: The applicant gets to select an MLI from the onboarded list for the processing of the loan.
• Loan Approval by MLI: The MLI reviews and approves or rejects the loan application of the candidate, setting the loan amount and disbursement timeline.
• MLI uploads Loan Details: MLI uploads loan details, which include amount, duration of the loan, and repayment period, along with the sanction letter.
• Interest Subvention Block by Corpus Bank: Corpus Bank blocks the required interest subsidy amount based on the disbursed loan.
• Course Fee Disbursement by MLI: MLI pays the institutional expense to the college/ university/ institution’s account as per the student's payment timetable.
• Interest Subvention Payment to MLI: The portal auto-pays the MLI the interest subsidy amount at the right time.
• Repayment Schedule Upload by MLI: MLI uploads the repayment schedule and raises an interest subsidy request to DHTE.
• Loan Status Validation by Portal: The portal auto-validates the loan status for all applicants, showing interest payment updates.
• Interest Disbursement by Corpus Bank: DHTE sends a request to Corpus Bank for the disbursement of interest subsidy to the MLI.

Also Read: List of Colleges under Guruji Student Credit Card Yojana/Scheme in Gujarat

Documents Required for GSCC

At the time of the GSCC application process, the applicants need to upload some important documents. Take a look at the list of documents required for Guruji Student Credit Card loan:

• The Aadhaar card of the applicant is required
• Your coloured photograph has to be uploaded
• The Co-applicant’s coloured photograph
• The signature of the candidate
• The Co-borrower/ Guardian’s signature
• Class 10th certificate of the applicant
• Candidate’s Class 12th certificate
• Rank Card for JEE/ MBBS (if any)
• Admission receipt from the college/ university/ institution
• Prospectus/ Certificate wherein charges like admission fee, examination fee, hostel charges, etc., are mentioned.
• The PAN card of the applicant
• The applicant’s bank statement is required to ensure that no prior education loan has been taken out.
• A cancelled cheque showing the account number and the IFSC code of the student.
• Ration card
• Income certificate
• Caste certificate
• Birth certificate of the applicant

For any queries regarding the Guruji Student Credit Card scheme, feel free to dial our toll-free number 1800-572-9877 or fill out CollegeDekho’s Common Application Form or log on to our QnA Zone for admission-related queries.