The Padho Pardesh scheme was introduced by the Ministry of Minority Affairs as an interest subsidy scheme on education loans for students aiming to study abroad. It is exclusive to meritorious students who belong from financially weaker sections of the minority communities: Sikhs, Muslims, Christians, Parsis, and Buddhists.
Under this scheme, the Government of India will pay the interest on education loan availed by minority students until the moratorium period. After such period is over, a student will have to continue paying the interest on the remaining loan amount.
Eligibility Criteria for Padho Pardesh
It can be availed by the eligible students only once to pursue either Masters, M.Phil. or Ph.D. degrees.
The scheme will not be available to students who discontinue their course midway.
The candidate cannot change his/her citizenship during the loan term.
How to Avail the Scheme
Eligible candidates are required to refer to lenders designated under the Padho Pardesh scheme when applying for an education loan.
The candidate needs to produce documents attesting he/she belongs to any of the specified minority communities along with KYC documents.
Must produce proof of admission in case of a foreign university.
The terms and conditions for the scheme are stringent and subject to change by the Ministry of Minority Affairs as and when they see fit. An individual can therefore avail a loan against property for education in India or abroad. Such loans come with less stringent terms, no end-user restriction, and a lower rate of interest. Also, it comes with a higher grant amount to meet all education related expenses such as accommodation, food, logistics, etc.