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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 from 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

 

(30) 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)

  4. Dr. Ansari Khurshid Ahmed

    Sir, my son has completed B.E. mechanical and he is working in a small local factory. Now he preparing to go Australia for M.E. Can he get Loan Subsidy Under Padho Pardesh Scheme. His income is less than 2 lakhs. whether he should take loan first and then apply for subsidy ?

    1. Surendra NaikSurendra Naik - Post author

      Dr.Ansari Khurshid Ahmed, Sir, your son is eligible for subsidy under the scheme.He should take loan and inform the bank that he is eligible for Padho Pardesh Scheme. He has to submit proof of belonging to minority community to the lending bank to claim the interest subsidy. Regards, Suurendra Naik

  5. Jomin James

    Dear sir, Am a minority community student .but currently amwoeki g in dubai since three years . Now am planning to take an admission in Canada or Germany for post graduate course and my family income is lesser than 6 lakh Am I eligible for this scheme?

    1. Surendra NaikSurendra Naik - Post author

      You are eligible for subsidy under the scheme. you should take loan in India and inform the bank that you are eligible for Padho Pardesh Scheme. You have to submit proof of belonging to minority community to the lending bank to claim the interest subsidy. Regards, Suurendra Naik

  6. Abid bashir

    Sir , if i take loan of 20 lack ... intrest wil be free or not ...or it will be like we dont have to pay intrest during course and then after completion of course we have to pay intrest ... or it is totally free of intrest ..please clarify it

    1. Surendra NaikSurendra Naik - Post author

      Dear Abid Bashir, 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. If the branch officials are not aware of the procedure, they have to contact their controlling office viz. RO/ZO/HO to know the process. Students have to submit proof of belonging to minority community to the lending bank to claim the interest subsidy. The amount of subsidy is equivalent to 100% of interest charged to the loan account during the entire period of the moratorium (i.e course period plus one year or six months after getting job whichever earlier). 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.If subsidy is sanctioned you need not pay interest for the moratorium period.

  7. Princitha Dsouza

    Dear Sir, I have received a loan for 19 lakh and have informed the lending bank about this scheme. But the bank is not sure about the procedures. I want to know when I should apply ? Is it before the course or after the completion of course?

    1. Surendra NaikSurendra Naik - Post author

      Madam, 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. If the branch officials are not aware of the procedure, they have to contact their controlling office viz. RO/ZO/HO to know the process. 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.

  8. Mohit Shah

    I am Mohit Shah. i Would like to study master of Cyber Security in Wroclaw University of science and Technology Poland (Europe). I Would like to Request to asssist me to get education lone so i can study there and make my family future bright my need and help me ot of this. padho-padesh scheme (jain minority )

    1. Surendra NaikSurendra Naik - Post author

      Dear Mohit, from the information provided by you, it appears that you are eligible for education loan under padho pardesh scheme. You have to approach a bank for the loan.If you would like to avail interest subsidy under Padho-Pardesh scheme, you should inform your lending bank that you are eligible for that particular scheme. You have to submit proof of belonging to minority community and income proof to the lending bank to claim the interest subsidy.

  9. Ammar Yasir

    Sir, I am employed and my salary is less than 6 lakh per annum but my parents income is more than 6 lakh, so am I eligible for Padho Pradesh scheme.

    1. Surendra NaikSurendra Naik - Post author

      It is overall family income of not more than Rs.6 lakh per annum.Family income means gross parental income in case of unmarried students and gross income of spouse in case of married students.

  10. Karamjit singh

    Res Sir, My name is karamjit singh my friend is a corporate employee and his incom is less then 6 lakh annum.He take a parsonal loan for his daughter higher education for abroad.my question is is he Abel to take a one more loan for his sons higher education for abroad in this scheme.

  11. Abid bashir

    Dear sir ... i want to knw whether i am applicable for this scheme or not ... i have taken loan 20 lack for studying mbbs ug not md ... am i applicable ... plz clarify it

    1. Surendra NaikSurendra Naik - Post author

      If you belong to minority community (Muslim,christian, Sikh,Jain, Buddhist,Parsis) and have secured admission in the University Abroad for pursuing Post-graduate Diploma, Masters, M.Phil or Ph. D level courses with the overall family income of not more than Rs. 6.00 lakh per annum. Family income means gross parental income in case of unmarried students and gross income of spouse in case of married students.

        1. Surendra NaikSurendra Naik - Post author

          As far as I know, the scheme is only for master degrees/diplomas. However, you may check the indicative subjects/disciplines covered under the scheme directly through the website of ministry of minority affairs at the following link. http://www.minorityaffairs.gov.in/schemesperformance/padho-pardesh-scheme-interest-subsidy-educational-loans-overseas-studies-students-belonging-minority

    1. Surendra NaikSurendra Naik - Post author

      You need not apply separately for the subsidy. You have to inform lending bank that you are eligible for interest subsidy and request them to feed the details in to Padho Pardesh. 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.

  12. Abid bashir

    How can we knw whether the portal is open for today or not ... can i apply for it today to the bank ... actually the bank dont knw properly .... plz feed me information so that the bank can apply for it

    1. Surendra NaikSurendra Naik - Post author

      I have no idea. If the branch does not know, it has to contact controlling office of the bank and collect all the information required.You don't have to know when the portal is opened, for availing loan.

    1. Surendra NaikSurendra Naik - Post author

      I do not monitor these things. If the branch does not know, it has to contact controlling office of the bank and collect all the information required.You don't have to know when the portal is opened, for availing loan.

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