How is Padho Pardesh Helping Minority Students in Post-Graduate Courses? Read this
According to the Indian Ministry of External Affairs, around 7.5 lakh Indian students were pursuing their education abroad as of July 2018. To support and sustain the trend of global education, the government has introduced Padho Pardesh. This is an interest subsidy plan on education loans for overseas education.
This government project is for financially weaker minority communities who are eligible for higher studies outside the country.
Overseas education requires substantial funds for tuition fees, admission fees, expenses of study materials, examination fees, travel cost, accommodation and food expenditures, medical costs, etc. Thus, such subsidy schemes on educational loans become helpful for students.
Benefits of Padho Pardesh scheme
Meritorious students, applying for an education loan under this scheme, can avail the following advantages.
- 100% interest subsidy
The most important and helpful feature of Padho Pardesh plan is the interest subsidy benefits for meritorious students from the minority community. Under this government-backed plan, economically weaker students are entitled to avail 100% of interest subsidy during the moratorium timeline.
- Significant loan amount
Under the Padho Pardesh scheme process, students can avail the above-said interest subsidy on a significant loan amount up to Rs.20 lakh to pursue higher education abroad.
- Covers multiple subjects
To provide an uninterrupted opportunity to pursue post-graduate education in desired disciplines, the Padho Pardesh project covers 41 subjects. Students can choose their respective choices from arts, social sciences, humanities, commerce studies, business management, engineering, pure science, information technology, computer applications, medicine, veterinary, agriculture, etc.
Furthermore, advanced higher studies like cryogenics, laser technology, ocean and atmospheric sciences, mechatronics, genetic engineering, automation robotics, nuclear engineering, imaging system technology are also covered under this plan.
- Relaxation in repayment tenor
Individuals can start to repay the loan amount either 1 year after they have completed the education course or 6 months after their employment, whichever occurs first.
- Basic and simple eligibility criteria
With simple and transparent eligibility criteria, candidates can avail this facility easily.
1. This subsidy facility is only applicable for the deserving students who come from some distinguished minority community as per the constitution of India. Minority community includes Muslims, Sikhs, Buddhists, Jains, Christians and Zoroastrians or Parsis.
2. While applying for Padho Pardesh, candidates must seek admission in a reputed abroad university to pursue higher studies after graduation.
3. Moreover, applications must be submitted within the first year of the concerned course.
4. Furthermore, individuals should be enrolled in any of the approved subjects under Padho Pardesh plan.
5. The entire income of the applicant, from all possible sources, must be within Rs.6 lakh per year. In the case of unemployed candidates, the income threshold applies to his/her parents or guardians.
A certificate issued by an authorized body also needs to be submitted as income proof, along with other supporting documents.
- Simple application process
The government also kept the application process uncomplicated so individuals can apply for this interest subsidy plan easily.
1. Several financial institutions provide education loans. As a first step, candidates need to avail a loan to study overseas. Once he/she achieves loan approval and disbursement, individuals can apply for Padho Pardesh subsidy.
2. Next, applicants should submit all required documents validating the eligibility criteria.
3. After that, lenders can enter candidates’ details and loan information on the online portal of this subsidy plan.
So, individuals can finance education with a loan against property and avail the facility of flexible repayment tenor. Moreover, such secured lines of credit give you access to a significantly higher principal sum, which may be necessary when looking to fund an overseas education.
At any rate, before applying for a loan against property, consider whether you are comfortable with the tenor and other related aspects. Otherwise, the debt can compromise your financial security.