Minority communities in India constitute around 20.2% of the total population. Over 36% of Indian students that are studying abroad belong to these groups. In the context of such data, the Government of India has started a program aimed towards the welfare of the minority communities.
The Padho Pardesh scheme under the Ministry of Minority Affairs provides subsidized loans for students to help them pursue higher education in foreign universities. Students from minority ethnic groups like Muslims, Christians, Buddhists, Parsis, and Jains can avail of this subsidy.
This scheme can be availed to pursue higher studies such as Masters, Ph.D., and M.Phil. in various trades.
A Brief Idea about the Scheme
Pursuing higher education can be expensive. Costs of education in India are rising day by day. However, the expenses required abroad are much higher.
According to a recent survey, about 30% of Indian students prefer universities in UK, Australia or the U.S.A for higher studies. Tuition fees in reputed institutions in these countries can burn a hole in the pocket of any individual.
Along with tuition fees, the cost of living in these countries can also be really expensive. The cost of living in countries like Australia and the U.S.A can range between Rs. 75,000 to Rs. 85,000 per month. Expenses can go up to either side of Rs. 1 Lakh in a month in the U.K.
Students can avail of subsidized credit to fund the required expenses for higher studies. Padho Pardesh scheme, with its wide range of features, helps individuals avail their loan against property for education across affordable interest rates.
Conditions to Avail Subsidy under the Padho Pardesh Scheme
An interest subsidy will be provided only if the specific conditions are met. Here is a list of things to know before applying for a loan against property for education with interest subsidy.
- Applicants can avail of interest subsidy only on existing loans that are availed under the Indian Bank’s Association (IBA) or financial institutions regulated by it.
- Students can avail of interest subsidy once for their undergraduate or postgraduate courses. They can also avail it on integrated graduation and post-graduation courses.
- Interest subsidies under this scheme will not be allowed for students who leave their education mid-way or are expelled from the institution on academic or disciplinary grounds. However, students discontinuing owing to medical issues can still avail subsidies if they provide proper documentation from the head of the Institute.
Features of the Scheme
This scheme provides affordable subsidized education loans in India to help students pursue their dreams. The features it comes with are as follows-
- Payable interest acquired during the moratorium period shall be paid by the Government of India.
- Students shall be liable to pay interest on the remaining loan amount after completion of the moratorium period.
The moratorium period is usually the duration of the course plus 6 months after employment or after 1 year of course completion, whichever is earlier.
This is the most crucial benefit that students can avail of with the Padho Pardesh scheme. Students availing the loan do not have to pay the interest accumulated during the moratorium period. They only need to pay the EMI’s after completion of the course.
Borrowers also need to avail loans from a financial institution that offers the most favorable terms to make the most of their credit along with this scheme.
Bajaj Finserv is one such financial institution that offers such credits with affordable interest rates. Some of the other features they offer include –
- Loans up to Rs. 1 Crore and Rs. 3.5 Crore for salaried and self-employed individuals, respectively.
- Zero foreclosure charges.
- Easy balance transfer facility.
- Flexible loan tenors ranging from 2 to 20 years.
They also provide pre-approved offers to avail of such loans quickly and easily. Pre-approved offers are valid on various financial products, like home loans, business loans, personal loans, etc.
You can check out your pre-approved offer by sharing only a few necessary details. The Padho Pardesh scheme aims to improve the literacy rates in India. It tries to uplift the minority communities by providing them with the funds to meet the necessary expenses of their higher education.
There is much more education loan on property schemes available to secure funding for their child’s education. You can reduce your debt considerably by availing this scheme when you finance your education with a loan against property.
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