"Padho Pardesh" interest subsidy scheme for Overseas studies for Indian minority communities

Ministry of Minority Affairs, Government of India, has introduced "Padho Pardesh" scheme for providing 100% interest subsidy on Educational Loans for International studies for the Indian students belong to the Minority Communities. This article talks about all the details information regarding this scheme.


The objective of the scheme is to provide award interest subsidy to meritorious students belonging to economically weaker sections of minority communities groups including Christians, Buddhists, Parsis, Jain and Muslims. Minority Affairs Minister Najma Heptullah proposed the scheme as "Padho Pardesh" scheme. It provides them better opportunities for higher education abroad and enhance their employability.
This is a Central Section Scheme under section 2(c) of National Commission for Minorities Act, 1992, for Overseas Studies to pursue approved courses of studies abroad at Masters and Ph.D. levels.

Padho Pardesh interest subsidy scheme

Conditions for the Subsidy

  • The subsidy shall be linked with existing Educational Loan Scheme of Indian Bank's Association (IBA) and restricted to enrolled for course at Masters, M.Phil. and Ph.D. degrees
  • The scheme shall be available to the eligible students only once, either for Masters or Ph.D. level. This subsidy shall not be available to those students who either discontinued the course mid-stream due to any reason, or those who are expelled from the disciplinary committee
  • If any student is found by false statement/certificates, the subsidy will be withdrawn or cancelled and subsidized amount shall be recovered
  • If any student violates any condition of the scheme, the subsidy will be discontinued
  • The terms and conditions can be changed at any time by Ministry of Minority Affairs to improve procedure and achieve more accurate implementation
  • Students shall not be gives up Indian citizenship during the tenure of the loan

Eligibility Criteria

The student should take admission in the approved courses at Masters, Ph.D. or M.Phil. degree overseas. He/She should have availed loan under the Education Loan Scheme of the Indian Banks Association (IBA).

Income Criteria

Total income of the employed candidate or his/her parents/guardians for unemployed candidate shall not exceed INR 6 lakh per annum. Income certificate issued by the authority in the State/Union Territory should be submitted.

Interest Subsidy

As per the scheme, interest payable by the students availing of the education loans of the IBA for the period of moratorium i.e. course period, plus one year or six months after getting job, whichever is earlier, as per the Education Loan Scheme of the IBA, shall be handle by Government of India.
After moratorium period is over, the interest on the outstanding loan amount shall be paid by the student. The student will bear the Principal installments and interest beyond moratorium period.
The scheme will be implemented by the designated Bank as per MoU between the Bank and Ministry of Minority Affairs.

Approved courses under the scheme

Following courses are eligible for pursuing studies abroad for interest subsidy shall be leading to Master degree, Ph.D. or M.Phil.

  1. Arts/Humanities/Social Sciences
  2. Commerce
  3. Engineering
  4. Pure Sciences
  5. Bio-technology/Genetic Engineering
  6. Nano-technology
  7. Industrial Environmental Engineering
  8. Marine Engineering
  9. Plastic Technology
  10. Petro-chemical Engineering
  11. Cryogenic Engineering
  12. Optometry
  13. Laser Technology
  14. Mechatronics
  15. MCA
  16. MBA
  17. Agronomy
  18. Medical
  19. Industrial Safety Engineering
  20. Horticulture
  21. Plant Pathology
  22. Energy Studies
  23. Agriculture and Agro Technology
  24. Art Restoration Technology
  25. Imaging System Technology
  26. Nuclear Engineering
  27. Packaging Engineering/Technology
  28. Food Sciences and Technology
  29. Dock and Harbour Engineering
  30. Soils and Water Management
  31. Plant Breeding and Genetics
  32. Veterinary Sciences
  33. Automation Robotics including artificial intelligence
  34. Any other Subject (Subject may be deleted or added by the Ministry from time to time as per the situation)

Few points to remember

  • Loan sanctioned and disbursed from 2013-14 onwards will only be eligible for interest subsidy
  • Currently subsidy is restricted to 20 lakh limits specified under IBA model scheme
  • Certificate is required at the time of availing loan
  • Self declaration is enough for loan application
  • Ministry will reimburse 100% interest component of the Educational loan availed by a student from Bank up to moratorium period
  • Student can take Educational Loan from any Scheduled commercial Bank and member urban Co-operative Banks etc. which is a member of IBA
  • You can obtain Minority Certificate from any religious body, from School/College Principal or Self -declaration

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