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What You Need To Know For Minority Students Under Padho Pardesh Scheme?

The Ministry of Minority Affairs introduced an interest subsidy scheme on educational loans under the ‘Padho Pardesh’ scheme for students from the minority communities to pursue their education overseas. This scheme is only exclusively applicable to meritorious students belonging to EWS (Economically Weaker Sections) of the notified minority communities, including Christians, Muslims, Sikhs extending to Buddhists and Parsis.

What is this aim of this scheme?

According to the 2011 census, these minority communities constitute about 27.4% of the total Indian population. The Ministry of Minority Affairs, combined with the Finance Ministry, aims to provide these students with an opportunity to pursue higher education abroad under this Padho Pardesh scheme.

As per the scheme, the Government of India will bear the interest payable for the loan availed by the candidates during the moratorium period. On completion of the moratorium, the students will have to meet the remaining interest on the outstanding loan amount as, following any provisions of the existing education loan scheme of lenders.

Eligibility criteria for this scheme

The conditions for this scheme are –

  1. This scheme can be utilised only once by eligible candidates either to pursue Masters, M.Phil. and Ph.D. degree.
  2. The subsidised scheme will not be applicable to those candidates who discontinued their course mid-stream.
  3. This subsidy scheme is linked with an existing educational loan in India.
  4. The selected candidate cannot give up his/her citizenship during the loan tenor.

However, the scheme’s terms and conditions are subjected to change by the Ministry of Minority Affairs at any time they seem fit. This stringent rules and regulations might pose a hindrance in your quest for higher studies abroad.

Hence, you can opt for a Loan against Property from NBFCs like Bajaj Finserv instead. You can avail loans of up to Rs. 3.5 Crore that will not only help you bear the overseas education cost but also incur the additional accommodation expenses.

Moreover, with this financial advance from Bajaj Finserv, you enjoy a host of borrower-friendly and industry-first benefits such as –

  • Instant loan approval with minimal documentation and fast disbursal within 24 hours
  • Attractive rate of interest
  • Flexible repayment tenure up to 20 years for your convenience
  • Balance transfer facility of an existing loan against property to Bajaj Finserv with only minimum documentation and fast processing

However, there are 5 things you need to know before applying for a loan against property to avoid any unnecessary confusion later on.  

They also bring you pre-approved offers that make procuring loans quick and hassle-free. These pre-approved offers are applicable on unsecured credits like personal loans, business loans and secured advances such as home loans among numerous other financial products.

Other Benefits Of The Scheme

Under the Padho Pardesh scheme, 30% of the beneficiaries are reserved for female candidates.  Only in case of an insufficient number of eligible female students, the balance of the interest subsidy shall be transferred to the eligible male students. However, to benefit from this subsidy scheme, the annual household (comprising of candidate’s parents) should not exceed Rs. 6 Lakh.

Points to Remember

Here are some points to consider before availing this scheme –

  • Make sure you go through your education loan details as the loans sanctioned, and disbursed post-2013-14 are eligible for this subsidised scheme
  • Candidates can avail educational loans from any financial institution that is a member of the IBA
  • This subsidy scheme is restricted up to 20 Lakh limits as specified under the IBA model
  • If any candidate benefits from this subsidised scheme, he/she shall be forbidden to avail any other subsidy schemes for the same purposes

Furthermore, migration of candidates from one academic institution to another is not allowed except under any exceptional cases.

How to Avail this Scheme?

While availing educational loans, the eligible candidates must ask the lending authorities to put in the candidate’s details under the Padho Pardesh scheme. A candidate must produce proof that he/she belongs to a specific minority community along with KYC documents and proof of admission in a reputed foreign university.

With this knowledge of the subsidised scheme along with how to manage your finances better while studying abroad, you dream to pursue higher degree overseas is now within your grasp.