While both education loans against property and Padho Pardesh scheme help aspiring students especially for higher education abroad, they are distinct between themselves.
It is important for students to understand the basic features and subsequently differences between the two so that they can choose the right line of credit for themselves.
The basic features and objectives of Padho Pardesh scheme are discussed below –
Subject to several criteria requirements, students can avail even up to 100% subsidy on their mortgage loan or loan against property, under this initiative.
Padho Pardesh scheme offers 100% subsidy on a loan sum going up to Rs.20 lakh.
The Government of India bears the subsidy up to the moratorium period.
Especially for meritorious but economically backward or minority pupils, this scheme offers the chance for education abroad.
The Padho Pardesh scheme process is also easy and user-friendly with the online application method.
Interestingly, education loans on property can be a great option pitched against this government initiative. While it does not offer any subsidy, benefits offered under it are discussed below –
The loan amount can go up to Rs.3.5 crore depending on the financial institution. This can be used to cover all academia related expenses from tuition cost and flight tickets to accommodation costs.
The repayment tenor is usually extensive and goes up to 20 years, making it convenient for borrowers to repay easily.
The eligibility criteria of education loan against property are usually much less complicated when compared to the government initiative, making it not just a convenient option but also the most prompt one.
Pupils should check all of their expenses and requirements before deciding on the loan they want to apply to finance their studies abroad.
Additional Read : How To Pay Off Education Loan On Property Faster
