Padho Pardesh Scheme

The Padho Pardesh scheme was introduced by the government to offer interest subsidies to deserving students from economically weaker sections of minority communities. This initiative supports students pursuing higher education abroad by reducing their financial burden and enhancing their global employment prospects.

As a centrally sponsored scheme, Padho Pardesh provides interest subsidies in accordance with the National Commission for Minorities Act, 1992. The subsidy covers the interest accrued during the moratorium period of education loans taken for overseas studies under the ‘Interest Subsidy Scheme on Educational Loans for Overseas Studies’. It applies to approved postgraduate, M.Phil, and PhD programs abroad.

• You belong to the economically weaker section with a gross family income within Rs. 6 lakh annually. You must present the income certificate issued by the state government to avail of this scheme.
• You must issue a self-declaration or certificate of belonging to the minority community as declared under section 2(C) of the National Commission for Minorities Act, 1992

If you need funds for pursuing your higher education but aren’t eligible for the Padho Pardesh scheme, consider other education loan schemes such as the Bajaj Finserv loan against property for higher education. Meet our simple eligibility criteria and get the loan amount in your account within 72 hours*. Opt for our Flexi facility to withdraw and pre-pay as per your needs and availability of funds. You can lower your EMIs by up to 45%* if you choose to pay only interest as EMI for the initial tenor. You can avail balance transfer facility at nominal charges and get loan of up to Rs. 10.50 Crore*.

Once you have submitted your loan against property application, our associate will call you to assist you with the next steps within the next 24 hours*.

*Terms and conditions apply

Interest subsidy conditions

• The Padho Pardesh scheme supports students pursuing higher education abroad by offering an interest subsidy, which is linked to the Indian Banks' Association (IBA) educational loan scheme. This subsidy is granted only once to eligible students—either for a Master’s, M.Phil, or PhD program.

• To promote gender inclusivity, 35% of the total slots are reserved for female applicants. If eligible female candidates are unavailable, the seats may be allocated to male students.

• Students who discontinue their studies mid-way or are expelled for academic or disciplinary reasons are not eligible for the subsidy. If any terms of the scheme are violated, the subsidy will be discontinued. Additionally, if a student renounces Indian citizenship during the subsidy period, they will no longer be eligible for the benefit.

• The government covers the interest payable during the moratorium period (course duration plus one year or six months after employment, whichever is earlier). After this period, the student must repay the loan, including interest and principal, as per standard loan terms.

 How to apply for Padho Pardesh scheme?

To apply for the Padho Pardesh scheme, eligible students must first secure admission to a recognized overseas institution and apply for an education loan under the Indian Banks’ Association (IBA) model. Once the loan is sanctioned, the bank will guide the applicant through the Padho Pardesh application process. Students need to submit relevant documents, including income proof, minority community certificate, and admission details. The bank forwards the application to the concerned authorities for subsidy approval. It’s important to ensure all documents are accurate and complete, as the interest subsidy is processed directly through the lending bank under this scheme.

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