The
Padho Pardesh scheme is a major section of the Indian government’s 15 Point
Programme with a basic aim towards the Welfare of Minorities. Under the
Ministry of Minority Affairs, this scheme provides subsidised educational loans
for students from the economically weaker section of the population to study
overseas.
It
is specifically meant to benefit minority communities including Muslims,
Christians, Sikhs, Buddhists, Jains and Parsis. Constituting 20.2% of the 1.2
billion Indian population, more than 36% of the 7.5 Lakh students studying
abroad hail from these ethnic groups. Padho Pardesh scheme provides subsidised
financial assistance to these students and for more who are unable to do so due
to financial constraints. Its subsidised loan scheme can be availed for higher
studies such as Masters, Ph.D. and M.Phil across various disciplines.
Subsidised Loans To Study Abroad
Studying
abroad includes more than just institution fees. According to the Economic
Times, the average cost of living in USA and Australia can sum up to around Rs.
75,000 and Rs. 86,000 per month. In the UK, living expenses inside or outside
London can vary either side of Rs. 1 Lakh.
As
much as 30% Indian students studying abroad prefer educational institutions
either in the USA, the UK or Australia. As such, studying abroad requires
nearly as much for tuition fees as for living expenses, if not more.
Subsidised
education loans provide such students a viable opportunity to meet the varied
expenses to pursue their dream courses abroad. Features of the subsidy –
●
The payable
interest accrued during the moratorium period
as per the Education Loan Scheme shall be met by the
Government of India.
●
Post
completion of the moratorium period, the student will be liable to pay interest
for the remainder of the loan amount.
Education
loans come with a pre-specified moratorium period. It typically includes course
duration and either 1 year after course completion or 6 months after
employment, whichever is earlier.
This
is the most important point of assistance provided by Padho Pardesh. The
student availing the loan is not required to repay the interest incurred during
the moratorium period. He/she only needs to meet the loan EMIs post the
moratorium period minus interest incurred during the same.
There
are numerous financial institutions which provide just as beneficial education
loans in India. For instance, lenders like Bajaj Finserv offer high-value Loans
Against Property for Education at attractive rates of interest and easy-to-meet
eligibility criteria.
Bajaj
Finserv also provides pre-approved offers with such loans which make the process
of availing them quicker and easier. These offers are available on various
financial products including secured loans such as home loans, unsecured loans
such as personal and business loans.
Conditions To Avail The Subsidy
●
Interest
subsidy offered by the scheme shall be directly linked to an existing loan
availed from the IBA (Indian Banks’ Association) or any financial institution
regulated under it.
●
Subsidy
will be available with each eligible student only once.
●
A student
discontinuing the course or expelled from the institution will not
be able to benefit from the scheme.
There
are certain other pointers every borrower should know before applying for a
loan against property.
Eligibility Criteria
●
The student
must have secured admission at pre-specified courses and at Masters, Ph.D. or
M.Phil degrees levels.
●
He/she has
to apply within the 1st year of the course.
●
The loan
must be availed from a financial institution registered under the Education
Loan Scheme of IBA.
●
A student
is only eligible if he/she belongs from a notified minority section and only if
the total annual income of his/her family is below Rs. 6 Lakh per annum.
Padho
Pardesh specifically aims to assist students from the socio-economic
perspective. It aims to uplift the economically weaker sections of the minority
population by meeting necessary finances required for abroad education. It is a
progressive ambition towards holistic upliftment of these sections of the
society, specifically the minorities. An online tool education loan calculator is used to calculate
the loan amount. You can optionally choose to finance your education with a
loan against property instead and use the property value to invest in your
child’s growth. Make sure to know the education loan details and terms before
applying for it.
