Students who belong to minority communities’ viz. Muslims, Christians, Sikhs, Buddhists, Jains, and Parsis are eligible for a 100% interest subsidy on education loans. This assistance is available to students who have secured admission to 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. Family income means gross parental income in the case of unmarried students and the gross income of the spouse in the case of married students. 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 the 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 the 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 the course period or six months after getting a job, whichever is earlier. The above condition for education loans 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: 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 the “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 of interest subsidy under the 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 the 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. As per revised guidelines;
(i) Portal will be opened only once in a financial Year for fresh applications. In case, a sufficient number of applications have not received the portal may be opened again subject to the availability of sufficient funds under the scheme.
(ii) For renewal cases, the portal may be opened in every quarter or as decided by the Ministry.
(iii) The applications received for a claim of the interest subsidy will be examined and recommended for award of interest subsidy under the scheme by a Selection Committee.
(iv) 35% of seats will be earmarked for girl students. In case of non-availability of girl students, seats can be transferred to boys students. The periodicity of review will be decided by the Ministry.
(v) The decision of the Selection Committee in regard to awarding the interest subsidy will be final and no appeal could be filed against it.
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 the 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
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
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.
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.
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.
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.
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)
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 ?
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
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?
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
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
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.
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?
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.
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 )
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.
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.
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.
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.
I don’t find any restriction in the scheme for another son in the family to apply for the education loan under Padho Pardesh Scheme.
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
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.
Sir i knw that but wat abt mbbs ug
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
When we have to apply for it any date
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.
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
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.
Is is portal open this month
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.
Sir,
Is there any specific list of foreign universities recommended by GoI that a student should pursue his master’s in order to avail interest subsidy or he can get admission into any foreign University so that he could avail interest subsidy?
No such restrictions. Students who get admission in an University abroad is eligible subject to other conditions of the scheme is fulfilled.
Thank you for the information sir.
Welcome!
Hello sir,
I have taken an education loan for Rs. 2,75,000/- and I have informed my lending bank about interest subsidy scheme. I have applied it and submitted all related documents to my bank. Now my question is.. How do I follow up that process? and how I do I check the status of payments? Because I have not got any confirmation SMS or emails. Please let me know How do I check the details and status? Please help me with this. Thanks in advance!
List of students awarded interest subsidy during 2016-17 is announced by the ministry.
Please click the following link
http://www.minorityaffairs.gov.in/schemesperformance/padho-pardesh-scheme-interest-subsidy-educational-loans-overseas-studies-students-belonging-minority
How can I check for 2015-16? Thanks for your prompt response in advance!!! Happy New Year sir!!
Find out from the following URL
http://www.minorityaffairs.gov.in/schemesperformance/padho-pardesh-scheme-interest-subsidy-educational-loans-overseas-studies-students-belonging-minority
Hello, I took loan under this scheme in August 2016. However, I am still waiting for the subsidy. It’s been more than an year. I suppose I should have received it by now. Do you know whom should I contact? I dropped emails to few people at Ministry of Minority Affairs but haven’t received any response.
Also, it seems like the released 2016-17 interest subsidy awarded list is only for renewal student not for fresh.
Contact Mr.Suresh Yadav (Undersecretary- Government of India :Padho Pardesh)
suresh[dot]yadav25[]at]nic[dot].in
Room No.1128 Intercom 222 Telphone No. 011 24364310
Thank you for your response. I did drop an email and tried to contact over the phone as well but haven’t received any response.
What is the difference between cent vidhyarthy scheme and padho pardesh ????
Which is good for minority student?
I don’t know what is cent vidyarthy scheme. From the title of the scheme it appears to me that it may be Education Loan scheme of Central Bank. Please ascertain from the bank what is this scheme. Padho Pardesh scheme is different from education loan schemes of the banks. The students of minority communities who have borrowed under education loan from banks are eligible for subsidy They need not pay interest for the study period (including moratorium period). They have to inform the bank where they have taken the education loan that they belong to minority community and wish to avail interest subsidy under Padho Pardesh Scheme.
should i apply to this scheme before or after taking the loan
First you have to take education loan from the bank and inform the bank that you are eligible for Padho Pardesh Scheme. You need to furnish the details required by the bank for the purpose and inturn bank would upload the details in the dedicated portal for the purpose.
Respected sir. Maine 2017 me MBBS ukrain me admission lia hai lekin bank mujhe loan nahi de rahi. Mai do month se bank ka chakkar laga raha lekin wo kahte hain ki agar apko 15 lakh loan chahie to 25 lakh tak ka security jama karen. Chahe zameen ho ya ghar ho
Sanction of loan and terms and conditions of loan is the discretion of the bank.
Kya ukrain ke lye eligible hoon mai?
There is no ristriction that the student has to study in a particular country to be eligible for Padho Pardesh scheme.
Dear Surendra Sir,
I am buddhist by birth and my spouse is brahim. So in that case will I be eligible to apply for padho pardesh. As currently I have offer for Parkland college in Canada for Global Business Management Post Graduate for August 2018 intake.And whose income will be considered as currently both of us are working.
Awaiting for your reply.
As per recent supreme court judgement, your religious status do not change due to your marriage. You being a buddhist by birth, you are eligible for interest subsidy under Padho Pardesh Scheme.
Sir,
I am planning to go abroad for higher studies. How can i apply for this scheme?. What are the procedures for this scheme.?
Apply for education loan for higher studies abroad and inform the bank that you are eligible for subsidy under Padho Pardesh Scheme and ask them to claim interest subsidy.
Sir,
What are the documents required for apply this scheme
Sir
Am I eligible for this scholarship If I want to pursue UG course in UK.
The scheme is only for PG courses
Student is studying in Ontario College Graduate Certificate in International Business Management followed by Post Graduate Board of Governor’s Certificate in Freight Forwarding and Logistics which is a full time 4 semester course .Is the course eligible for Padho Pradesh interest subsidy scheme?
Eligible only for post-graduation studies
Hi Sir,
My son got addmission in HEC Paris for Master degree.
I am working here in Saudi Arabia with gross annual income is more than 15 lakhs as per current conversion rate . Can my son get loan under padho pardesh scheme.
I don’t think your son is eligible for Padho Pardesh Scheme as the family income exceeds Rs.6 lakh per annum.
Sir, I am carrying an offer from a recognized and Top university in UK for UG course. Am I eligible under any circumstances.
The undergraduate course is not eligible for Padho Pardesh scheme.
I’m applying for education loan for an amount of 20 lakh and I’ve a personal loan of amount 7 lakh shall I apply for education loan and my family income is around 6 lakh per annum
As per the scheme you are eligible for Padho pardesh subsidy as your family income is below Rs.6 lakh. However, the question of how the bank had sanctioned a personal loan of Rs.7 lakh. if the loan was sanctioned on the basis of your present income, they may ask you to close the loan before considering the new loan.
Hello Sir,
I have applied for the scheme one year before ,when I started my studies in October 2017 in Germany. I have submitted various documents from my flight ticket to my third semester payment details from bank( i have totally 4 semester). I have started my studies with the hope of the loan and now its really its a trouble for me.Because my parents had to lend money on high interest from various others. I really need a solution for this problem. Everytime we approach the canara bank they say more documents required. Can you sugguest me whom should I approach so I can get this done soon.
Padho pardesh scheme is applicable to you if you have availed education loan and you belong to a minority religion. From the above information I could not make out whether you have availed education loan or the bank is asking you for some more documents to sanction loan to you. If the bank has declined your loan it has to give a valid reason for declining the loan. You may click the following link to know revised education loan scheme in India.https://bankingschool.co.in/loans-and-advances/highlights-of-revised-model-educational-loan-scheme/
Sir ,
Took a loan of 20 lakhs in 2015 to study ms abroad Australia, from SBI. Kept of asking bank officials about Pado pardesh scheme and submitted income proof each and every year for interest subsidy.now the moratorium period has over and EMI has to be paid . Didn’t get job yet. And didn’t get any interest credit in loan account. While inquiring bank officials about whether I will get it in future or not , there are not giving any proper answer , what to do sir.kindly advice.thanking you in advance
Please click the following link to know whether your name is in the list. http://www.minorityaffairs.gov.in/schemesperformance/padho-pardesh-scheme-interest-subsidy-educational-loans-overseas-studies-students-belonging-minority
Hi,
Your website says that MoM opens portal every quarter for banks to apply for subsidy. However, my bank claims that MoM is not opening the portal for renewal applications on a regular basis and my bank is submitting my subsidy claim very very late to MoM portal (My Dec 2016 subsidy for renewal was submitted in April 2018). there are many such examples of delay caused by my bank. If my bank claims the subsidy late from MoM, the subsidy will be applied late to my loan account and the interest on cumulative interest will keep on growing and I will end up paying more interest to bank because of this. Can you tell me when did MoM open portal for RENEWAL applicants for bank to claim the subsidy for financial year 2015-16, 2016-17, 2017-18 and FRESH application portal for all the above years?
This will help me in knowing whether my bank is negligent in applying my subsidy or MoM is not opening the portal on regular basis. Also, what can i do in such case?
Thanks!
As per the revised guidelines, (i) Portal will be opened only once in a financial Year for fresh applications. In case, the sufficient number of applications have not received the portal may be opened again subject to the availability of sufficient funds under the scheme.
(ii) For renewal cases, the portal may be opened in every quarter or as decided by the Ministry.
(iii) The applications received for a claim of interest subsidy will be examined and recommended for the award of interest subsidy under the scheme by a Selection Committee. However, subsidy for 2015-16, 2016-17, 2017-18 are already declared by the Ministry Of Minority. You may contact Joint Secretary, MOM through phone or mail. Search in google for name and address of the particular joint secretary.
(iv) 35% seats will be earmarked for girl students. In case of non-availability of girl students, seats can be transferred to boys students. Periodicity of review will be decided by Ministry.
(v) The decision of the Selection Committee in regard to awarding the interest subsidy will be final and no appeal could be filed against it.
Hello Surendra Sir,
I am Rishabh Jain and I am going for my masters to US and have taken a loan of 40 lakhs. Am I eligible to apply and can I get still get interest subsidy on 20 lakhs only?
Thanks and Regards,
Rishabh
Dear Rishabh Jain, 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 and whose overall family income is not more than Rs.6.00 lakh per annum. Presently, the subsidy is restricted to the limits specified under the IBA model scheme i.e. Rs 20.00 lakh only.
Dear Sir/Madam,
I am planning to pursue masters in computer science, and my annual income is 6lpa but my parents income is less than 4lakhs. If I will have to pursue higher studies, i have to quit my job and income as a choice. My question to you is, if I resign my job and apply for the loan, will I be eligible for interest subsidy for 20 lakhs.
Waiting to hear from you!
Once you have secured admission to foreign Universities to pursue higher studies (i.e Post-Graduate Diploma, Masters, M.Phil, and Ph.D. level) you need to leave the job in India. In that case, your overall family income is not more than Rs.6.00 lakh per annum. You can apply for an interest subsidy under Padho- Pardesh scheme. Inform your bank about your intention to claim a subsidy under the Padho-Pardesh scheme to enable them to upload your details to Nodal Bank.