• UGI USER
  • Jan 21, 2023
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Ministry of minority affairs discontinued Padho Pardesh Scheme

News: The interest-subvention programme for school loans for students from minority communities who wish to pursue studies abroad has been terminated by the Ministry of Minority Affairs (MoMA) (Padho Pardesh)

 

  • The Indian Banks’ Association informed all banks last month that the Padho Pardesh Interest Subsidy Scheme would not be continued in 2022–2023. Until now, Canara Bank, the designated nodal bank, has carried out the scheme.
  • According to the Association’s statement to Banks, the current beneficiaries as of March 31, 2022, would continue to receive the interest subsidy during the loan’s moratorium term, provided they follow the current rules.

About the scheme

  • The scheme, which was a component of the then-prime minister’s June 2006 fifteen-point programme for the welfare of minorities, aims to provide meritorious students from economically underprivileged sections of notified minority communities with interest subsidies in order to improve their access to higher education at the master’s, master’s, and doctoral levels abroad and to increase their employability.
  • The Government of India will cover the interest owed by students who take out education loans as required by the Education Loan Scheme of the IBA for the moratorium period, which is the length of the course plus one year or six months after obtaining employment, whichever comes first.
  • After the moratorium period is complete, the student is responsible for paying the interest on the remaining loan balance in accordance with the current Educational Loan Scheme. Beyond the moratorium period, the Candidate shall be responsible for the Principal Instalments and Interest.