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Padho Pardesh : 100% Interest subsidy  to students of minority communities

Padho Pardesh : 100% Interest subsidy to students of minority communities


Students who belong to minority communities’ viz. Muslims, Christians, Sikhs, Buddhists, Jains, and Parsis are eligible for 100% interest subsidy on education loan. This assistance is available to students who have secured admission in foreign Universities to pursue higher studies (i.e Post-Graduate Diploma, Masters, M.Phil and Ph.D level) and whose overall family income is not more than Rs.6.00 lakh per annum. The Subsidy is available for the entire period of the moratorium (i.e course period plus one year or six months after getting job whichever earlier.

The meanings of Moratorium period, the amount of subsidy, minority communities, meritorious students are  explained below.

Moratorium Period (Holiday period): The conditions of education loans sanctioned by banks specify that the loan shall be repaid by the borrower after completion of course period plus holiday period/moratorium period. The repayment starts after a ‘moratorium period’ or ‘repayment holiday’, that is, one year after the completion of course period or six months after getting a job, whichever is earlier.The above condition for education loan provided by the banks is uniform in all Public Sector Banks/ Scheduled Commercial Banks and Urban co-operative banks.

The amount of Subsidy: The students belonging to minority communities are eligible for subsidies, who have secured admission abroad for pursuing Post-Graduate Diploma, Masters, M.Phil and Ph.D level etc.The amount of subsidy is equivalent to 100% of interest charged to the loan account during the entire period of the moratorium. it is important to note that the Ministry of Minority Affairs (MoMA) would release subsidy component  of the educational loan  availed by minority students from the banks only for the loan amount  up to   Rupees Twenty Lakh  under the   scheme.

Minority Communities:  The Students who belong to Muslims, Christians, Sikhs, Buddhists, Jains, and Parsis are considered as students belonging to minority communities.

Definition of meritorious students: There is no question of “Meritorious” element in the Padho-Pardesh scheme. The student who secured admission abroad is considered as meritorious under the scheme.

Students who would like to avail interest subsidy under Padho-Pardesh scheme should inform their lending bank that he/she is eligible for that particular scheme. Students have to submit proof of belonging to minority community to the lending bank to claim the interest subsidy. Then the lending bank will feed the students information into the Portal of Padho Pardesh launched by Canara Bank which is implementing agency of this scheme. The Portal will remain open for the period of two months in every quarter.

Students have to submit periodical progress reports/documents to their respective lending banks on time to time during the period of pursuing their studies abroad. On completion of course, students have to submit a copy of Mark list and certificate to the lending Bank as well as Ministry of Minority Affairs for their records.

If the course pursued by the student of the minority community is partly in India and partly abroad, then he/she  is eligible for the interest subsidy, in case the degree is awarded by the Foreign University.

Related article: (Click ) Significant benefits of education loan

2. Stream of concession loans available to minority communities in India

 

(6) Comments

  1. Baljit singh

    Hello, It is great scheme. I want to know that if student all ready have loan for Higher education in Foreign. Is he eligible for this scheme. Like i Took loan In October 2013 for MBA. My course date was 20th Jan 2014 and finishing date was July 2015. Is I am eligible for this scheme. Thanks

    1. Surendra NaikSurendra Naik - Post author

      As per the guidelines of Ministry of minorities, the loan sanctioned and disbursed from 2013-14 onwards will only be eligible for interest subsidy. Since you have availed loan in October 2013, it appears to me that you are eligible for subsidy scheme. You may inform your lending bank about this government scheme for students of minority communities. Then lending bank will feed the students information into the Portal of Padho Pardesh launched by Canara Bank which is the implementing agency of this scheme. The portal will remain open foor the period of two months in every quarter.

  2. philomina

    my son, studying abroad, availed a loan in May 2013.loan sanction limit is Rs.24 lakhs. I want to know whether he is eligible for this interest subsidy scheme. thanks.

    1. Surendra NaikSurendra Naik - Post author

      As per the guidelines of Ministry of minorities, the loan sanctioned and disbursed from 2013-14 onwards will only be eligible for interest subsidy. Since your son has availed loan in May 2013, it appears to me that he is eligible for subsidy scheme. You may inform your lending bank about this government scheme for students of minority communities. Then lending bank will feed the students information into the Portal of Padho Pardesh launched by Canara Bank which is the implementing agency of this scheme. The portal will remain open for the period of two months in every quarter.

  3. philomina

    Sir, I am grateful for the positive response received earlier from you. I would also want to know the reason for rejecting my application for interest subsidy applied at State Bank of India.The reason being that the amount exceeded Rs.20 lakhs, for our loan being 24 lakhs.(loan sanction limit is Rs.24 lakhs). Kindly provide me with the clarification for the confusion regarding this matter. Looking forward for your reply. Thanks.

    1. Surendra NaikSurendra Naik - Post author

      Madam, I have searched the notification of Ministry of Minority affairs as well circulars of IBA but did not find mention of Loan amount eligible under the scheme. However, Upon going throgh various news items ((Times of India June 22, 2015 Hyderabad edition) on the subject, i have collected the following information. While the minority students are provided financial assistance of upto Rs 10 lakh for pursuing overseas studies under a Telangana state scheme, those applying under Padho Pardesh scheme would be entitled to a maximum loan of Rs 20 lakh for studying abroad. Ministry of Minority Affairs (MoMA) would reimburse 100 percent interest component of the educational loan availed by minority students from the banks under Padho Pardesh upto the moratorium period (that is, the course period plus one year after completion of the course or six months after getting employment, whichever happens earlier). (Times of India June 22, 2015 Hyderabad edition)

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