What is the Padho Pardesh scheme?
Padho Pardesh scheme is a subsidized education loan scheme that is being provided to meritorious students who have excelled in their examinations but belong to a minatory community. This initiative was started in June 2006 by the Ministry of Minority Affairs, the Government of India, and the Indian Banks Association to tackle the funding issue faced by the minority communities of India.
What makes this Padho Pardesh scheme so lucrative is the fact that the government guarantees to pay a hundred percent of the payable interest during the moratorium period, which includes the course term plus a year to six months after getting employed. All this is offered solely on the basis of the candidate being a minority.
Who is eligible for the Padho Pardesh scheme?
Here is the list of eligibility factors to qualify for the PadhoPardesh scheme.
- The applicant must originate from a minority background
- The applicant’s annual income should be below Rs 6 lakhs
- The applicant must have secured a seat at the university abroad
- Under the scheme, there are certain courses that are applicable, such as:
- Energy studies
- Nano Technology
- Veterinary science
- Farm Power and Machinery
- Plant Pathology
- Agronomy s
- Industrial Safety Engineering
- Information Technology
- Laser Technology
There are a handful of courses that are applicable under the PadhoPardesh scheme.
- Preferential treatment will be given to those who have a lower rate of interest on their existing education loan
- Applicant must have secured a loan from a bank that provides education loan schemes and are accepted via the Indian Bank Association
How is the interest rate subsidized?
This scheme is made viable because of the moratorium feature. The Indian government will pay the interest for the duration of the moratorium period.
The moratorium period lasts for the duration of the course and 6 months to 1 year after securing a job. Post which the student must pay the outstanding loan amount and the interest that is due.
There are certain factors behind the interest subsidy:
- Candidates may only claim the benefits of the scheme for higher education that is based outside India.
- Government of India will agree to pay the interest during the moratorium period for candidates that are pursuing Ph.D., Masters courses, or MPhil
- Candidates that abandon the term mid-course will not be eligible
- Interest subsidy will not be provided to candidates that give up their Indian citizenship
- In case any candidate provides false information will not be eligible for the scheme
- The candidate’s bank where the loan has been drawn upon will keep a separate account for the funds that are being allocated by the Ministry of Minority Affairs and the banks are to provide a report for the same every quarter
- Utilization certificate is to be provided in order to receive more funds
- Banks are to ensure that no other schemes are added on top of the government’s pre-existing ‘Padho Pardesh’ scheme
- The Ministry of Minority Affairs reserves the right to change the terms and conditions of the policy at any given time
- Lastly if any of the conditions are violated by the candidate, they will not be eligible.
How to Apply for the PadhoPardesh scheme?
The procedure to apply for the PadhoPardesh scheme is fairly straightforward, here are the steps to procure the scheme:
- Firstly, you need to approach the bank of your choice and then apply for the PadhoPardesh scheme
- Submit all the required and relevant documents that state you are eligible for the scheme and its benefits
- The bank will submit your documentation to the government portal on your behalf. This documentation include your loan as well as your scheme eligibility documents