How to Apply Padho Pardesh Scheme For Education Loan?

The Padho Pardesh Scheme is a Government of India initiative aimed at providing interest subsidies on education loans for students from economically weaker sections (EWS) of minority communities who want to pursue higher education abroad. This scheme helps reduce the financial burden of education loans by covering 100% of the interest during the moratorium period (course duration + 6 months or 1 year after completion).

🔹 Key Features of the Padho Pardesh Scheme

✅ 100% Interest Subsidy: The government pays the full interest amount during the moratorium period.
✅ For Studying Abroad: Available for postgraduate, PhD, and higher studies.
✅ For Minority Communities: Open to students from Muslim, Christian, Sikh, Buddhist, Jain, and Parsi communities.
✅ Income Criteria: Family income should be below ₹6 lakh per annum.
✅ Applicable on Government Bank Loans: Loans taken under the Indian Banks’ Association (IBA) Model Education Loan Scheme are eligible.

🔹 Eligibility Criteria for Padho Pardesh Scheme

✔ Nationality: Must be an Indian citizen.
✔ Religion: Belong to a notified minority community (Muslim, Christian, Sikh, Buddhist, Jain, Parsi).
✔ Course Level: Only for postgraduate (Master’s), PhD, or higher studies abroad.
✔ Income Limit: Family income must not exceed ₹6 lakh per year.
✔ Loan from Scheduled Banks: Loan must be taken from banks following the IBA Model Loan Scheme.
✔ Moratorium Period: Subsidy is only applicable during course duration + 6 to 12 months.
✔ One-Time Benefit: A student can avail of the subsidy only once.

- 🔹 How to Apply for Padho Pardesh Scheme?
- Step 1: Take an education loan from an eligible bank (SBI, PNB, BOB, etc.).
- Step 2: Submit proof of belonging to a minority community.
- Step 3: Provide income certificate (showing family income ≤ ₹6 lakh).
- Step 4: The bank will apply for the interest subsidy on your behalf.
- Step 5: If approved, the government will pay the interest during the moratorium period.
- 🔹 Discontinuation of the Padho Pardesh Scheme
- In 2023, the Government of India announced the discontinuation of new applications under the Padho Pardesh Scheme. However, students who had already availed of the subsidy earlier will continue to receive benefits until their moratorium period ends.
- 📢 Alternative Schemes Available:
  If you are looking for interest subsidies, consider:
  ✔ Ambedkar Central Sector Scheme (for OBC/EWS students).
  ✔ National Overseas Scholarship (NOS) for SC/ST students.
- 🔹 Benefits of the Padho Pardesh Scheme
- ✔ Reduces loan burden – The government covers interest for up to 6 years.
  ✔ Encourages higher education abroad – Helps students from minority communities study at top global universities.
  ✔ Supports EWS students – Makes education loans more affordable.
- Although new applications are not accepted anymore, other subsidy schemes and scholarships are available for financially weaker students. Would you like details on alternative options?
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