Use of Padho Pardesh Scheme to get education loan for Abroad Studies
Studying in a foreign country is an exorbitant affair. Therefore, the Government of India has launched the Padho Pardesh scheme intending to make overseas education affordable for eligible aspirants. This scheme aims to empower aspiring minds and improve their exposure to better educational opportunities, thus giving them a new lease of life.
Padho Pardesh scheme offers education loans for abroad studies
This subsidised loan scheme is launched under the guidance of the Government of India’s Ministry of Minority Affairs and the Indian Bank Association (IBA) to make abroad education affordable to those who find it hard to pursue their dream career due to monetary limitations.
The most lucrative feature of the Padho Pardesh scheme is its availability of the interest subsidy component. Under this scheme, students from minority communities can avail of education loans with subsidised interest for pursuing their higher education overseas. The Indian Government aims to promote higher education and improve employment opportunities among minority students through this scheme.
Students will get 100% reimbursement of the interest amount that they have to pay with this education loan. Furthermore, the subsidy scheme covers an array of educational courses like commerce, humanities, science etc.
Students can avail of this interest subsidy for the entire course tenor and one year more after completing their course, or six months after getting employed, whichever comes first. However, to reap the benefits of this education loan, one needs to adhere to its eligibility criteria.
Padho Pardesh Scheme eligibility criteria
Aspirants need to meet the following eligibility criteria before availing of interest subsidies under this Padho Pardesh scheme.
- Students’ annual household income should not exceed Rs.6 lakh. Also, a student is required to submit an income certificate that is issued from a competent authority of the State/ Union Territory.
- Students can avail of this interest subsidy only if they have enrolled themselves in an abroad institute to study any of the approved courses like PhD, MPhil, or Masters.
- An aspirant must avail of this education loan from lenders who are members of the Indian Banks Association.
- A student must not give up Indian citizenship during its subsidy period. Students will only get an interest subsidy for the moratorium period or the extended time frame. After the moratorium period, a beneficiary or beneficiary’s family will bear its principal instalments.
- The beneficiary must produce proof belonging as stated under 2(C) of the National Commission for Minorities Act 1992.
Furthermore, students will get an interest subsidy in the first year of their course. They will not get these advantages in the second or subsequent years of their course. Also, Students will not be eligible for this scheme if they leave the course midway or are expell from the institution on disciplinary or academic grounds.
Eligibility criteria to apply for this Padho Pardesh education loan
Though an education loan helps ambitious aspirants achieve academic height, the fund obtained from an education loan is not always adequate to cover extra expenses that come along with overseas education. Since this loan amount does not cover tuition fees, travel and accommodation charges, medical expenses, etc., it creates a financial burden on the candidate. Hence, students should know how to manage their finances better while studying abroad.
As an alternative, students can consider taking a loan against property to fetch a high quantum loan. Most lending institutions offer their customers affordable interest rates and longer repayment tenor, making a loan against property a viable second option to finance a student’s abroad education.
However, aspirants must know everything about loan against property for education before availing it.
Furthermore, prospective borrowers should also check the pre-approved offers extended by leading financiers. These offers streamline the loan application process and save time. It is applicable on financial products like home loans, loans against property etc. Borrowers can check their pre-approved offers by entering their name and contact number.
To sum up, the Padho Pardesh scheme helps aspiring talent to pursue their higher education abroad. The scheme provides an opportunity to the students from economically weaker sections of society. However, as an education loan comes with stringent eligibility criteria and offers a limited loan amount, one can also look for an availing loan against property for education.