The Indian Government issued the Padho Pardesh scheme intending to contribute to the Welfare of Minorities. The main motive is to help minority communities, which includes Muslims, Sikhs, Christians, Buddhists, Parsis and Jains.
As stated under the Ministry of Minority Affairs, this program provides subsidised education loans for candidates who belong to the economically weaker minority group so that they can study overseas. It has been witnessed that more than 36% of 7.5 lakh students who pursue higher studies abroad belong to either of these categories.
For such reasons, padho pardesh scheme was issued to provide financial support to all those candidates who want to opt for further studies after graduation, but do not get the opportunity due to financial burden. Students can avail the benefits for various courses, such as PhD, Masters and M.Phil.
However, before proceeding with it, learn all the education loan details along with eligibility criteria and benefits. You must have a clear idea to avoid any issues that might hinder the process. Additionally, you can even finance your education with the help of a loan against property as they offer longer tenors and affordable interest rates.
Meet the Following Eligibility Criteria
To avail benefits of Padho Pardesh scheme, you must comply with the following:,:
- Must apply within a course’s first year.
- Must have earned admission at one of the pre-specified courses along with Masters, M.Phil or PhD levels.
- Annual family income must be below Rs. 6 lakh.
- Must avail such credits from any of the financial institutions linked with the Education Loan Scheme issued by the IBA.
- Must belong to a minority
What Are The Circumstances Under Which This Subsidy Can Be Availed?
- Interest subsidy earned through this scheme would be linked directly to an existing loan. However, this loan must be availed from the Indian Banks’ Association (IBA) or some other financial institution under it.
- If a student discontinues or gets expelled, he or she would not be able to enjoy the benefits of this scheme.
- An eligible applicant can avail such benefits only once.
How Are Subsidized Loans For Higher Education Beneficial?
When it comes to studying abroad, expenses are not limited to institution fees; the cost of living increases as well. The Economic Times suggests that living cost in Australia and the USA can round up to approximately Rs. 86,000 and Rs. 75,000 per month, respectively. On the other hand, living in the UK can cost around Rs. 1 lakh every month.
Almost 30% of the Indian students prefer to choose one of these locations for higher studies, and thus, it might be quite challenging to accomplish the same without additional support such as education loan. Subsided loans play a significant role in this case as they help to meet various expenses that come along with studying outside India. In simple terms, such credits provide with the opportunity to pursue higher education abroad.
However, there are certain things you need to know before applying for a loan. Some of these include:
- This loan for education in India states that the Government would take care of the interest accrued in the moratorium period of a loan.
- Once the moratorium period is over, students are liable to pay the interest amounts. However, that interest would be calculated on the remaining credit.
The moratorium period usually comprises of the course duration and another extra year or six months after you get employed, depending on which period ends prior.
If you don’t qualify for this scheme, then opt for a loan against property for education from financial institutions like Bajaj Finserv. The company offers loan up to Rs. 3.5 Crore with tenors up to 20 years.
They also provide with pre-approved offers to simplify the entire process and make it less time-consuming. Such offers can be applied to a wide range of financial products, including home loans, personal loans, business loans, etc.
The Padho Pardesh scheme has helped the minorities to stay at par with the rapid growth in education in this country. Check padho pardesh scheme process before applying and also fulfill the eligibility criteria for it. This program has provided with additional benefits for them to study abroad and turn their dreams into reality.