Summary: There are 2 major interest subsidy schemes you can avail if you’re looking for Interest Subsidy for your education loan for abroad studies. In this article, we have covered both the schemes in detail, their eligibility criteria, who can apply and how to can avail them.
To start with, by availing interest subsidy, you can only waive off the simple interest payable during the period of moratorium of the education loans. The interest rate of your education loan still remains unaffected. However, these schemes bring a huge difference to the monthly loan EMI loan you will have to pay so make sure you read on to know how you can apply.
The Interest Subsidy for International education loans are only offered by standardised banks. Apart from the attractive interest rates offered, one additional benefit offered is the simple interest subsidy scheme for international student loans under 2 major schemes.
Academically strong students from backward communities and are from financially weak families can apply for two schemes under India Government to obtain Interest Waiver / Subsidy for their International Education Loan. These benefits enable them to waive their interest expenses during the moratorium period of their education loan. These two schemes are :
- Padho Pradesh Scheme
- Dr. Ambedkar Central Sector Scheme
Padho Pardesh Scheme
Padho Pardesh Scheme scheme is eligible only for students belonging to a community declared as minority communities in terms of section 2 (c) of the National Commission for Minorities Act, 1992. The scheme gives relief on the interest payable for the period of the moratorium for the Education Loans under the Scheme of Interest subsidy on Educational Loans for Overseas Studies to pursue approved courses of studies abroad at Masters and M.Phil/Ph.D levels.
Eligibility Criteria for availing Padho Pardesh Scheme:
- Students should apply for the benefits under the scheme during 1st year of the course.
- Students must be doing/ have secured admission for Masters / M.Phil or PhD courses
- The loan obtained must be from a scheduled bank under Indian Banks Association
- Preference will be given to loans with lower interest rates
- The family income of the student must not exceed 6 lakhs per annum
Please note that only 400 total seats are available and 35% of seats will be earmarked for girl students. Only in case of non-availability will these seats be given to the other gender.
Subjects/Disciples eligible for Padho Pradesh Scheme
The subjects/disciplines in which courses may be undertaken for the grant of interest subsidy are:-
- Arts/ Humanities/ Social Sciences
- Pure Sciences
- Bio- technology/ Genetic Engineering
- Industrial Environmental Engineering
- Nano- technology
- Marine Engineering
- Petro-chemical Engineering
- Plastic Technology
- Cryogenic Engineering
- Automation Robotics including artificial intelligence
- Laser Technology
- Low Temperature Thermal Dynamics
- Art Restoration Technology
- Dock and Harbour Engineering
- Imaging System Technology
- Composite Materials Engineering including Decentralized power Distribution (for Solar Heat) system, Energy Storage Engineering, Energy conservation, Energy Efficient Habitat
- Packaging Engineering/ Technology
- Nuclear Engineering
- Information Technology including Computer Engineering, Software, Software Quality assurance, Networking/Connectivity Engineering, Communication system under Hazardous or Post-disaster conditions, Multi-media Communication
- Industrial Safety Engineering
- Agriculture & Agro Technology
- Floriculture & Landscaping
- Food Sciences & Technology
- Forestry & Natural Resources
- Plant Pathology
- Energy Studies
- Farm Power & Machinery
- Veterinary Sciences
- Soils & Water Management
- Plant Breeding & Genetics
- Small- scale Rural Technology
- Ocean & Atmospheric Sciences
How to Apply for Padho Pardesh:
- Go to the Scheme application website here.
- Submit the relevant documents stating that you’re eligible for the interest subsidy scheme.
- Your bank will submit your personal information in the same portal.
For more details, check out this Students FAQ page by Ministry Of Minority Affairs.