With the introduction of the Padho Pardesh scheme in June 2006, the Indian Government focuses on providing education to eligible students from financially backward and minority sections of the society. The Government of India, IBA, and the Ministry of Minority Affairs supervise this scheme and encourage meritorious students to take admitted to foreign universities by providing them with the benefit of interest subsidy. With the assistance of this scheme, aspiring students can fulfill their dream of studying abroad and flourish in their careers.
An overview of the Padho Pardesh scheme
Usually, education loans’ interest rates are always on the higher side. Due to this, individuals belonging to the backward and minority section of society face difficulty pursuing their dream of studying overseas and in reputed universities. Therefore, as per the regulations of this scheme, individuals fulfilling the requirements will be entitled to avail of a 100% interest subsidy on their education loan throughout their education course.
Apart from this, various other government programmes regarding affordable education such as Vidya Lakshmi scheme, Dr. Ambedkar Central Sector Scheme of Interest Subsidy, Central Scheme of Interest Subsidy for Education loan etc., are offered to the eligible candidates to facilitate repayment support schemes through various financial institutions.
Features and benefits of Padho Pardesh scheme
Among various other government schemes extended by the Indian Government, this particular scheme primarily aims to promote higher education among the financially backward section of society and ensure better job prospects. One of the biggest highlights of this Padho Pardesh Scheme is the benefit of subsidized interest rates.
Following are the benefits and features of this scheme:
- Meritorious learners can obtain a 100% interest subsidy on their education loans. The Ministry of Minority Affairs ensures full repayment of the payable interest on their loan within the moratorium period. This scheme provides reimbursement benefits to eligible students until they secure a job. However, once the moratorium period is over, the remaining principal and interest amount are paid by the candidate.
- This interest subsidy scheme is applicable for the entire course tenor and also 1 year after completing the course or 6 months of employment, whichever is before.
- This subsidized interest benefit of this Padho Pardesh scheme is applicable on any education loan acquired from any financial institution registered under IBA.
- This scheme is available for students with a strict financial background who are willing to pursue higher education overseas. Besides, with the help of this credit facility, individuals can substantially save on miscellaneous education loan-related expenses without any stress.
- The Government reimburses the payable interest of the education loan for the moratorium period and extended period.
Additionally, individuals need to know about the eligibility requirements of this scheme to ensure a hassle-free loan application.
Eligibility parameters of Padho Pardesh scheme
By meeting the following qualifying parameters of this scheme, individuals can substantially save on the payable interest on education loans for overseas studies. The requisites are listed below:
- A beneficiary must possess a document proving their belonging to the minority community as per Section 2(c) of the National Commission for Minorities Act, 1992.
- The household income of the applicant must not exceed Rs.6 lakh.
- This education loan scheme is applicable to Masters, M.Phil, PhD courses.
- Applicants must not give up their Indian citizenship during the subsidy or course period.
However, if an applicant fails to meet these mentioned eligibility parameters, aspiring students can consider a tnb as an alternative. With the availability of this credit facility, individuals can also ensure considerable interest savings with attractive rates.
While seeking an education loan, individuals can also apply for a loan against property from leading financial institutions and secure a substantial loan amount at affordable rates. The funds obtained from this financing option can be utilised to meet various educational expenses such as admission fees, travel and accommodation cost, tuition fees etc.
By meeting simple loan against property eligibility criteria, individuals can ensure fund disbursal in their account without any hassle. Besides, this secured financing option also extends flexible repayment tenor, thereby allowing borrowers to repay the amount at their convenience.
To know how to apply for a loan against property, individuals need to visit their concerned financial institution’s website and follow the steps accordingly. Furthermore, intending borrowers can also check whether they are eligible for the pre-approved offers or not. Reputed financial institutions extend lucrative pre-approved offers on a wide range of financing options such as loan against property, home loan etc. These offer significantly streamline the application process and save time. Individuals can check their pre-approved offers by providing their contact details.
Padho Pardesh scheme is a beneficial government program for students belonging to minority sections to fulfill their dreams of studying abroad.