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Know More About Padho Pardesh Scheme For Education Loans

Padho Pardesh Scheme

Padho Pardesh Scheme for Education Loans provides an opportunity for young talents who have excelled in their exams and come from economically disadvantaged minority communities to pursue higher education abroad. This scheme, launched by the Government of India and the Indian Banks’ Association (IBA), provides an interest subsidy on Education Loans for overseas studies. Not only are they given a sharp mind and increased employability, but they are also given a new lease on life.

The interest rates on education loans are extremely high. As a result, candidates from poor, backward, and minority communities find it difficult to pursue their dreams. The central government will help deserving students by subsidising the interest on education loans through the Padho Pardesh Scheme.

Key Features Of Padho Pardesh Scheme

  • Educational welfare for minorities: The scheme’s main goal was to help students from poor and minority communities obtain loans at subsidised interest rates for educational advancement.
  • 100% subsidy on the interest rate: The interest rate on educational loans is extremely high. As a result, many students are unable to afford these credits. With the Padho Pardesh Scheme in place, students will receive a 100% credit subsidy.
  • Covering the course duration: Another feature of the scheme is that students will receive a subsidy for the duration of the course. As a result, they will be able to focus on the course.
  • Partial courses are also included: Many courses are taught in sections, with one section taught in India and the rest taught in other countries. Candidates will receive the subsidy as long as the degree is provided by a foreign university.
  • The number of beneficiaries: To date, the programme has benefited 1343 students. These candidates are members of the minority community and have been accepted to foreign universities.
Padho Pardesh Scheme

Eligibility Criteria Of The Scheme

  • Must be a member of a recognised minority community – The main requirement for the candidate is that he or she be a member of a recognised minority community. The list includes Christians, Muslims, Sikhs, Jains, Buddhists, and Parsis.
  • Must be admitted to a recognised university – All candidates who wish to benefit from the Padho Pardesh Scheme must be admitted to a recognised foreign university.
  • Must pursue higher education – Only candidates pursuing master’s, M.Phil, PhD, MBA, and other courses at this level will be eligible for the interest rate subsidy. The list also includes PG Diploma courses.
  • Must fall within an income group – Only candidates with a yearly family income of 6 lakhs or less will be eligible for academic loan subsidies. Crossing the line will result in the application being rejected.
  • Must be sanctioned by an enlisted bank – Candidates will be able to apply for the benefit if the loan was granted by an enlisted bank by the central government.
  • Loan amount – Only candidates who have taken an education loan of less than 20 lakhs will be eligible to apply for the scheme.
  • Must be an Indian citizen – Finally, the candidate who wishes to benefit from the Padho Pardesh Scheme must be a legal citizen of the country.

Loan Rules Under The Scheme 

  • Loan Amount – According to the program’s rules, any minority candidate who has obtained a credit of 20 lakhs or less from any Indian bank for meeting the requirement of education from a foreign university is eligible to apply.
  • Rate Of Interest – The student will not be required to pay interest for the duration of the course. They will also receive a one-year and six-month buffer period once the course is completed and they have found work, respectively (whichever is before). Once this period has expired, the remaining interest and principal must be paid.
  • Loan Repayment – The creditor must repay the amount only after the course.
  • Mode Of Repayment – All payments will be made to the student’s account. To obtain the loan amount, the student can use internet banking or a check. They will be required to repay both the loan and the interest in the same manner.
  • Loan Term – The candidate will receive the interest subsidy for as long as the course is scheduled to continue. After completing the course, the government will wait either one year or six months, beginning when the candidates are hired.

List Of Banks Under The Scheme

The subsidy should be linked to the Indian Banks Association, also known as the IBA. Any IBA-affiliated cooperative bank, private bank, scheduled commercial bank, public sector bank, and more will be able to sanction a loan under this scheme. According to government reports, the central authority has already allotted a whopping budget of Rs 7.50 crore. The government intends to use this money to assist as many students from the minority community as possible.


The Government of India launched the Padho Pardesh scheme to provide an interest subsidy to meritorious students from minority communities. The programme allows students to finish their higher education abroad. The Central Government launched the scheme with the primary goal of providing an interest subsidy to deserving students from economically disadvantaged backgrounds. Scholarships are available to help students from minority communities complete their higher education abroad and improve their job opportunities. 


What is Padho Pardesh Scheme?

  • “Padho Pardesh” – Interest Subsidy Scheme on Educational Loans for Overseas Studies for Students from Minority Communities.

Who is eligible for the Padho Pardesh scheme?

  • The student must have been accepted into approved courses at the Master, M. Phil, or Ph. D levels abroad. He/she should have obtained a loan from a scheduled bank under the Indian Banks Association’s (IBA) Education Loan Scheme for the purpose.

What are the benefits of the Padho Pardesh Scheme?

  • Students are eligible for a 100% interest subsidy on educational loans until the moratorium period (i.e. course period plus one year or six months after getting a job, whichever is earlier) as prescribed by the Indian Banks Association’s Education Loan Scheme (IBA).

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Padho Pardesh Scheme

Know More About Padho Pardesh Scheme For Education Loans

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