In June 2006, the Government of India announced a welfare programme for students belonging to the minority section. Named Padho Pardesh, this scheme offers interest subsidies on education advances to study abroad.
Students belonging to the minority community should be provided with interest subsidies on their education loan. This provision is mentioned in section 2(c) of the National Commission for Minorities Act, 1992. This scheme aims to assist in the same and bring such subsidised education loans into the mainstream finances.
Such education loans are either unsecured or education loans against property. The former is an unsecured loan, and the latter is a secured loan. In an unsecured loan, a borrower does not use their property as collateral but, in a secured loan, the borrowers avails a loan against the property which is used as mortgage.
The amount of advances an individual can avail in an education loan against property depends primarily on their property value. With explicit knowledge, an individual can determine which one is better between loan against property and education loan and apply accordingly.
Other than choosing a suitable loan, it is just as vital to get acquainted with a few details regarding the scheme.
Steps to successfully apply for a Padho Pardesh scheme process
- First, an individual should apply for an education loan or education loan against property. After that, they are eligible to opt for the Padho Pardesh policy.
- An individual is subjected to provide their required documents to their respected lenders.
- The financial institution would further update the borrower’s personal information and the education loan details on the online portal of the policy.
Before applying for the procedure in haste, an individual should know that, among the various other aspects, the Padho Pardesh policy is only applicable to the following subjects –
- Pure science.
- Arts or Humanities.
- Veterinary science.
- Farm power and machinery.
- Ocean and atmospheric sciences.
Other than considering the subject offered in this policy, an individual is subjected to fulfil a few eligibility criteria to apply for interest subsidies provided under the scheme details.
Padho Pardesh eligibility criteria
- A borrower should apply for this scheme only if they are pursuing their higher studies like Masters, M.Phil or PhD.
- A borrower should belong to the economically weaker section with a yearly household income of Rs.3 lakh.
- Students are required to apply for an education loan before referring to this policy.
- A borrower should apply for this policy during the first year of their educational course.
To avail the benefits under the Padho Pardesh scheme, an individual is subjected to go through the processes depending on their lenders. Other than fulfilling the eligibility criteria, an individual needs to produce a few essential documents to their respective lenders. The documents required include –
- Identity proof like PAN card, Aadhaar card, Voter ID card, and other government identification cards should be provided.
- Address proof like Voter ID card, PAN card, Aadhaar card etc. should be provided.
- A salaried individual is subjected to produce their immediate salary slip.
- Salaried individuals are subjected to provide their Income Tax Return files.
- Photocopy of the documents of the mortgaged properties is required.
- A salaried borrower should provide their bank account statements of the previous 3 months.
- Other than the above-stated documents, a self-employed individual is subjected to furnish their bank account statement of the previous 6 months.
The interest and formalities vary between every financial institution; the loan amount differs as well. Financial institutions may offer advances up to Rs.3.5 crore an education loans against property. Other than the flexible tenor, there are a few specific details a borrower should know before applying for a loan against property for education.
Financial institutions like Bajaj Housing Finance Limited offer such loans at affordable interest rates and other borrower-centric benefits.
They also provide pre-approved offers that simplify the process of availing loans. These offers are also available on various other financial products including advances like loans against property, home loans, personal loans, etc. You can check your pre-approved offer by providing a few important details online.
Padho Pardesh is an initiative taken by the Government of India to provide the necessary education to deserving students belonging to economically weaker sections. Various financial institutions also play a significant role to provide the necessary financial assistance to the scheme. It is vital for a prospective student to have a complete idea about it before going forward with a loan application.