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Padho Pardesh

Padho Pardesh Scheme

Last Updated 01st Oct 2022

  • Padho Pardesh Scheme provides education loans with subsidised interest for pursuing higher education abroad.
  • This scheme was announced in June 2006 to promote higher education among minority communities.
  • Applicants must be from minority communities with an income of below Rs. 6 lakh per annum to avail the benefits of this scheme.
  • Under this scheme, the applicable interest on the loan is reimbursed by the Government for the moratorium period.
  • This subsidy scheme is offered on a wide range of academic courses including Science, Commerce, Humanities, etc.
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Padho Pardesh Subsidy Scheme

Padho Pardesh Scheme is an overseas education loan launched by the Indian Government for the students of minority communities. Under this scheme, students willing to pursue higher studies abroad can get an education loan with interest subsidy. This subsidised loan scheme is operated under the guidance of the Government of India, Ministry of Minority Affairs and the Indian Bank Association (IBA).

The most lucrative benefit of the Padho Pradesh Scheme is its interest subsidy component. The Ministry of Minority Affairs guarantees to reimburse 100% of the interest payable on the education loan throughout the moratorium period. The moratorium tenure includes the course tenure plus one year or six months after getting employed, whichever comes earlier. After this period, the outstanding payable interest has to be borne by the student or his/her family. This scheme can be availed on education loan taken from any bank which is a member of the IBA. You will need to provide proof of belonging to the minority community and falling within the specified income bracket set by the government to enjoy the scheme benefits.

Step by Step Process for Padho Pardesh Scheme on Education Loan

For availing the Padho Pardesh Scheme benefits, you will firstly need to apply for an education loan at a bank. Below given are the steps by which you can apply for the interest subsidy scheme on education loans.

  • Check the different educational loan schemes offered by banks who are members of the Indian Bank Association(IBA) and select a lending bank.
  • Visit the official website of the chosen bank.
  • Fill in the education loan application form accurately and submit.
  • Submit the relevant documents to the bank representative after he gets in touch with you.
  • After completion of the document verification, the bank will sanction the loan amount, which will be credited to your specified bank account.
  • After getting the loan, inform the chosen bank about your willingness to avail the Padho Pradesh Scheme.
  • You need to submit the additional documents required to prove your eligibility to avail the interest subsidy scheme benefits.
  • In case you are found eligible, the bank will then upload your personal information as well as loan details on the portal of the Padho Pardesh.

Step-By-Step Guide to Apply for Padho Pardesh Scheme on Property

You can enjoy the benefits of Padho Pardesh Scheme on education loan against property. The steps to be followed for availing this scheme on the property are, given below.

  • Compare the different educational loan schemes offered by the registered banks and choose a suitable one.
  • Visit the bank’s official website.
  • Submit the loan application form after filling it with accurate details.
  • After the bank representative gets in touch with you, submit the documents asked to provide.
  • After document verification, your pledged property will be inspected by the lender.
  • On approval of the inspection, the lending bank will disburse the loan in your bank account.
  • Then, inform your lending bank that you want to avail the Padho Pardesh Scheme.
  • Prove your eligibility for the subsidy scheme by submitting the required documents.
  • If found eligible, then the bank will feed in your personal details as well as the terms of the loan on the Padho Pardesh portal.

Eligibility Criteria For Padho Pardesh Scheme

The Padho Pardesh scheme aims to provide loans to students pursuing education overseas in varied academic fields. However, you need to comply with certain criteria to be eligible for the loan. The eligibility criteria mostly vary from one lender to another, some of the common criteria being the following.

  • You must belong to the minority community.
  • You and your family’s annual income must not exceed ₹ 6 Lakh.
  • You must have secured admission in a preferred higher degree course like Master’s degree, M.Phil or PhD at a foreign university.
  • You must pursue any of the following academic courses for availing loan under the Padho Pardesh scheme:
    • Pure Science
    • Commerce
    • Humanities
    • Master of Business Administration
    • Ocean and Atmospheric Sciences
    • Veterinary Science
    • Farm Power and Machinery


How to Apply for Subsidy on Padho Pardesh Scheme?

You can apply for a subsidy on the Padho Pardesh scheme after availing the education loan from a bank. Follow the steps given below for applying for the subsidy scheme:

  • Get an education loan by filling an application form and submitting the required documents.
  • Intimate the bank about your desire to apply for the Padho Pardesh Scheme.
  • Submit the relevant documents at the lending bank to prove your eligibility for availing the scheme benefits.
  • If on verification, you are found eligible for the scheme by the concerned bank, the latter will upload your personal information along with the loan specifications into the scheme’s portal. After that,
    you can enjoy the interest subsidy on your education loan.

Can I Avail this Padho Pardesh Scheme Benefit on Property?

Yes, you can avail Padho Pardesh Scheme benefit on property. For this, you have to first apply for an education loan on the property at a bank who is a member of the IBA that is the Indian Bank Association . You can apply for the loan online through the lending bank’s website or visit the bank’s branch and submit the application form along with the necessary documents. Once you have availed the loan, you can then apply for the Padho Pardesh scheme by submitting the documents needed to prove your eligibility for the scheme. On successful verification of the documents, you will be enabled for the interest subsidy benefits under the scheme.

What is Eligibility Criteria to get Padho Pradesh Scheme ?

In order to get Padho Pardesh Scheme benefits you must belong to the minority community having an annual income of less than ₹ 6 Lakh. Further, it is mandatory that you have got admission in Master’s. M.Phil or PhD courses. The academic courses can be pursued in various disciplines such as, Pure Science, Commerce, Arts, MBA, Farm Power and Machinery, Ocean and Atmospheric Sciences, and Veterinary Science among others.

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