The Ministry of Minority Affairs, Government of India and the IBA together initiated the Padho Pardesh scheme with the intention to offer affordable overseas education to meritorious students from minority communities. Under the scheme, students can pursue their higher education abroad and improve their job opportunities.
What is Padho Pradesh Scheme?
Padho Pradesh scheme is a scheme of interest subsidy offered on educational loans for overseas studies. Scholarships are provided, that helps meritorious students complete their higher education.
Students will be given a 100% interest subsidy till the moratorium period. Government of India will pay the interest subsidies only for the entire duration of the course or six months/one year after getting a job.
Requirements of the Padho Pradesh Scheme for education loan
Aspirants need to adhere to the basic requirements like meeting eligibility criteria before availing an education loan under the Padho Pradesh scheme. These include:
- Applicants must belong to a minority community as stated under 2(c) of the National Commission for Minorities Act 1992.
- Applicants’ annual household income must not be more than Rs.6 lakh. Furthermore, candidates have to produce an income certificate issued by a competent authority in State/ Union territory as proof of income.
- Aspirants should have availed of a loan from a scheduled lending institution under the Education loan scheme of the IBA (Indian Banks Association).
- Students can avail of the interest subsidy only once either for pursuing Masters, M.Phil. Or PhD levels. Furthermore, the interest subsidy will not be offered to students who have either discontinued the course mid-way or are expelled from the institution.
- Aspirants must apply for the loan during the 1st year of the course. Students can’t apply for it in the 2nd year or subsequent years of the course.
- Students who want to pursue indicative subjects like Arts, Science, Engineering, Commerce etc., will be granted interest subsidies.
Furthermore, students availing of an education loan under the scheme cannot give up their Indian citizenship during the subsidy period.
Steps to apply for the Padho Pardesh subsidy scheme
Applicants can check the step-by-step guide to apply for Padho Pardesh scheme:
Step 1: Firstly, applicants need to choose lending institutions that have ties with the Indian Bank Association (IBA) to avail of the education loan. Then apply for Padho Pardesh scheme.
Step 2: Proceed with filling the application form and submitting necessary documents.
Step 3: Respective lender will upload applicants’ personal information and education loan details on the scheme’s official portal.
Borrowers can apply for the loan amount only if they meet the above-mentioned eligibility requirements of the Padho Pardesh scheme. Just like the Padho Pardesh scheme helps students to pursue overseas education, students who want to pursue higher education in the country can opt for the loan amount under the Vidya Lakshmi Scheme for education loan.
Albeit education loan helps students get a step closer to pursuing their dream career, the loan amount is not sufficient to cover the additional expenses that overseas education incurs upon a candidate. The loan amount does not cover expenses like tuition fees, accommodation and travel charges, medical expenses etc. This is why an individual can avail loan against property to get a high-value loan amount. However, applicants must meet the loan against property eligibility criteria to get instant disbursal of the loan amount.
A loan against property is a popular option that helps finance students’ education. Borrowers need to have a fair share of knowledge on the varied loan against property interest rates available in the market to opt for the best rate.
The lending institution offers a wide range of mortgage loans to its customers. Borrowers can choose from the types of loan against property available to acquire funds.
In addition to this, prospective borrowers can check the pre-approved offers extended by leading financial institutions on financial products like loans against property, home loans etc. These offers expedite the lending process and reduce the hassle of lengthy documentation procedures. Individuals can check their pre-approved offers by submitting their name and contact number.
To conclude, the Padho Pardesh scheme is one of the significant initiatives launched by the Government of India. It helps students from economically weaker sections to scale academic heights in life. However, considering the stringent loan amount offered under the scheme, applicants can consider an education loan against property to meet the overseas educational expenses.