Padho Pardesh scheme – Objective, eligibility, benefits & more
According to a recent survey, the number of Indian students opting to go overseas to pursue a career in higher education has shown a drastic increase in the last few decades. Based on the data analysed by the UNESCO Institute of Statistics, the number of Indian overseas students have risen to above 3 lakh in 2016 from just around 66,000 in 2000.
The cost of education is ever increasing. This is why the Government of India, the Ministry of Minority Affairs, and IBA have introduced the Padho Pardesh interest subsidy scheme which provides education loans aimed to benefit minority communities who are looking forward to study abroad.
Objective of Padho Pardesh scheme
In order to opt for higher education overseas, availing an education loan is considered among the most feasible financial choices to cover diverse expenditures. With the introduction of the Padho Pardesh scheme, the Government of India aims to reward meritorious students, who belong to the financially weaker section of minority communities across the country.
Application process
Students belonging to the minority communities who are willing to study abroad can consider the following steps to enrol themselves in the Padho Pardesh scheme process –
- Firstly, you need to avail an education loan or an education loan against property from your desired financial institution to finance your higher education.
- After availing the loan, you can apply for the Padho Pardesh scheme by heading to the nearest branch of your financial institution or refer to the online application process for the same.
- In both cases, you are required to provide all the necessary documents to your financial institution to prove that you are meeting the demands of the eligibility criteria.
- Your financial institution will submit your details on the Padho Pardesh portal and conclude the application process.
After completing the application process, you will be informed about the sanction or rejection of this subsidy scheme within 15 days. You will also be eligible for added benefits on your education loan moratorium period.
Since education loans comprise end-use restrictions, it is advised to opt for an education loan against property. As a parent, you can avail an education loan against property to fund your child’s education fees as well as travelling and living expenditures.
Eligibility criteria and benefits of Padho Pardesh scheme
This government initiated subsidy scheme is available only for the amount of interest payable for education loans available to study abroad. There are certain other terms and conditions involved surrounding the Padho Pardesh scheme, they are –
- Community centric scheme
This subsidy scheme is for communities which have been stated as a minority community as per the conditions of Section 2(C) of the National Commission of Minorities Act, 1995.
- Relevant documents
Applicants have to provide substantial documents proving that they belong to the financially weaker section of the society with a gross annual family income of Rs.6 lakh. Among the necessary documents, the income certificate provided by the state government is vital to avail this subsidy scheme.
- Penalty fee
In case of education loan amounts above Rs.2 lakh, an interest of 2% is applied to the outstanding amount of the overdue period.
- Legitimate lending organisation
The Padho Pardesh subsidy scheme is applicable for education loans or education loans against property availed from reputed financers registered under the Indian Bank’s Association, as per the guidelines stated in the Revised Model Education Loan scheme for education in India and abroad.
Bajaj Housing Finance Limited, a reputed HFC, additionally brings forth pre-approved offers that make availing such loans quick and easy. These offers are also applicable on numerous other financial products such as home loans, personal loans, credit cards, etc. Check your pre-approved offer by providing your name and contact details.
- Gestation period
The subsidised interest on your education loan is calculated monthly by a simple interest method during the repayment holiday period.
Other than the above terms, the features of a Padho Pardesh loan is quite similar to an ordinary education loan against property which are –
- Substantial loan amount
Borrowers can avail an education loan against property with a substantial loan amount of up to Rs.3.5 crore based on their eligibility at affordable interest rates. In order to avail a higher amount, you need to improve your loan eligibility. This can be done by learning how your credit score affects your loan eligibility.
- Flexible tenor
Salaried individuals can opt for a loan tenor ranging from 2 to 20 years while self-employed borrowers can select a loan tenor of up to 18 years. Such extended tenors help to finance your child’s education with a loan against property with ease.
- Online account management
With the online account management facility, you can access your loan details anytime, anywhere.
Hence, keeping the above discussion in mind, you will not face any issues while applying for a Padho Pardesh scheme on your education loan against property to fund your child’s educational expenditures for studying overseas. Refer to a leading lender for the most beneficial loan terms and features.
