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Minority Student Education Loan Under Padho Pardesh Yojana 2025: Eligibility, Process & Interest Rate



Education is a powerful tool. It opens doors, breaks barriers and changes lives. But for many students from minority communities in India, financial limitations often stand in the way of their dreams. That’s where the Padho Pardesh Yojana steps in. This special scheme provides education loans with interest subsidies to help minority students study abroad without the heavy burden of repayment stress.

In this blog post, we will explain everything you need to know about the Minority Student Education Loan under Padho Pardesh Yojana 2025 – including its eligibility criteria, application process, interest rate, and much more. We’ll also answer some common questions and provide a helpful conclusion to guide you further.

🌍 What is the Padho Pardesh Yojana?


The Padho Pardesh Yojana is a Government of India scheme launched by the Ministry of Minority Affairs in collaboration with the Ministry of Education. The main aim is to offer interest subsidies on education loans to students from minority communities who wish to pursue higher education abroad.

This scheme helps economically weaker minority students access global education without being overwhelmed by the high cost of foreign study loans. By covering the interest on the loan during the course period and moratorium, the scheme offers a valuable financial cushion.

🎯Purpose of the Scheme

The main goals of the Padho Pardesh Yojana are:

  • To make international education more accessible for minority students.

  • To reduce the financial burden of education loans through interest subsidies.

  • To encourage higher education and skill development among minority communities.

  • To promote inclusion and equality in education.

👥 Who Can Benefit? (Target Beneficiaries)

The scheme is aimed at students belonging to notified minority communities under Section 2(c) of the National Commission for Minorities Act, 1992:

  • Muslims

  • Christians

  • Sikhs

  • Buddhists

  • Jains

  • Parsis (Zoroastrians)

📚 Courses Covered Under the Scheme

Students can avail the benefits of this scheme for approved courses at Master’s, MPhil or PhD levels in recognised foreign institutions.

Examples include:

  • Master’s in Engineering

  • MBA (Master of Business Administration)

  • PhD in Science or Social Sciences

  • MPhil in Humanities

Short-term or diploma courses are not covered.

🔍 Eligibility Criteria for Padho Pardesh Yojana 2025

To qualify for the Minority Student Education Loan under Padho Pardesh Yojana 2025, the student must meet the following conditions:

✅ 1. Minority Status

The applicant must belong to one of the notified minority communities in India as mentioned earlier.

✅ 2. Admission in a Recognised Foreign Institution

The student must have secured admission to a Master’s, MPhil or PhD programme in a foreign university or college.

✅ 3. Parental Income Limit

The total annual income of the family should not exceed ₹6 lakhs. This includes the income of the student’s parents or guardians.

Note: Income proof needs to be certified by a competent authority as per government rules.

✅ 4. Indian Citizenship

The applicant must be an Indian citizen and hold a valid Indian passport.

✅ 5. First Loan for Higher Studies Abroad

The subsidy is applicable only if this is the first loan taken for overseas higher education.

📝 How to Apply for the Scheme in 2025?

The process to apply for the Padho Pardesh Yojana has been streamlined through collaboration with designated banks. Here’s a step-by-step guide:

Step 1: Choose a Bank Offering the Scheme

Students must apply through banks recognised by the Indian Banks’ Association (IBA) that offer education loans under the Padho Pardesh Yojana.

Some of these include:

  • State Bank of India (SBI)

  • Punjab National Bank (PNB)

  • Canara Bank

  • Bank of Baroda

  • Union Bank of India

Step 2: Apply for an Education Loan

Apply for an education loan under the IBA Model Education Loan Scheme. Ensure the loan amount and course duration meet the scheme’s criteria.

Step 3: Submit Required Documents

  • Proof of minority status (self-declaration or religious certificate)

  • Admission letter from the foreign university

  • Income certificate from a competent authority

  • Passport and visa copy

  • PAN card and Aadhaar card

  • Loan application form and related documents as per bank requirements

Step 4: Interest Subsidy Application

Once the loan is approved, the bank will submit the student’s details to the Canara Bank, which is the nodal agency for handling interest subsidy claims.

Students do not need to apply separately for the interest subsidy. The bank takes care of the submission.

💸 Interest Rate Details and Subsidy Coverage

Here’s what you should know about the interest rate and subsidy under Padho Pardesh Yojana:

🔐 Subsidy Period

  • The subsidy covers the interest charged during the course period plus one year of moratorium (i.e. grace period after course completion).

  • After this period, the student has to pay interest and principal as per the bank’s terms.

📉 Interest Rate

  • The interest rate is set by the bank, usually as per RBI education loan guidelines.

  • It typically ranges between 9% to 12% depending on the loan amount and tenure.

  • The government pays the entire interest during the subsidy period.

Example: If your education loan interest rate is 10% and your two-year course plus one year moratorium adds up to 3 years, the government will pay the interest for those 3 years.

📅 Timeline and Deadline for 2025

  • The scheme is available for students who take loans during the academic year 2025–26.

  • Students must ensure that the bank submits the interest subsidy application within the financial year to Canara Bank.

  • Late or incorrect applications may result in denial of subsidy, so early action is recommended.

📂 Important Documents Checklist

Here’s a list of key documents you’ll need during the process:

Document Description
Minority Certificate Self-declaration or religious document
Income Certificate Issued by local government authority
Admission Letter From foreign university
Loan Sanction Letter From the bank
Passport Copy With student visa
PAN and Aadhaar Card Personal ID proofs
Academic Certificates For eligibility verification

✅ Key Benefits of Padho Pardesh Yojana

  • Full interest waiver during course + moratorium period

  • Encourages global exposure for minority students

  • Promotes inclusive education

  • No extra paperwork for subsidy claim (done by banks)

  • Supports career development and future opportunities

⚠️ Things to Keep in Mind

  • The subsidy is not a grant; you must still repay the loan principal after the subsidy period.

  • The subsidy is available only once per student.

  • Keep all documents updated and maintain communication with the bank.

  • Track your subsidy status via your bank's or Canara Bank’s online portal, if available.

🙋 Frequently Asked Questions (FAQs)

1. Can I apply for Padho Pardesh subsidy if I already have an education loan?

No. The scheme is valid only for the first education loan taken for studying abroad.

2. Is there any limit on the loan amount?

There is no fixed limit under the scheme itself, but banks usually lend up to ₹20–30 lakhs for foreign education, depending on the course, university and repayment capacity.

3. Do I need to repay the subsidy?

No. The interest subsidy is not repayable. But the principal amount of the loan must be repaid after the moratorium period.

4. Is the scheme open for students applying to any country?

Yes, there is no restriction on the country, as long as the foreign university is recognised and the course is eligible (Master’s, MPhil or PhD).

5. Can I get both a scholarship and the Padho Pardesh interest subsidy?

Yes, but the combined financial support should not exceed the actual cost of education. You must declare all financial aids at the time of loan sanction.

6. How will I know if my interest subsidy is approved?

The bank will inform you, and the subsidy amount will be adjusted against your loan account by the Canara Bank (nodal agency).

7. Has the scheme been discontinued?

The government had paused the scheme temporarily in 2023, but for 2025, it is expected to continue in a revised form. Always check the latest circular from the Ministry of Minority Affairs or the bank.

🧭 Thematic Conclusion: Education Without Financial Barriers

In a country as diverse as India, education must be inclusive. The Padho Pardesh Yojana 2025 reflects the government’s efforts to create equal opportunities for all, especially those who have historically faced financial and social challenges.

This scheme can be a turning point for many bright young students from minority communities who dream of studying abroad but hesitate due to high costs. With the interest burden taken care of during the study period, students can focus on their learning and future.

If you or someone you know meets the eligibility criteria, don’t let financial limitations stop your dreams. Reach out to a trusted bank, gather your documents and take the first step towards a brighter, global future.

Stay tuned to official updates on the Padho Pardesh Yojana through the Ministry of Minority Affairs, Canara Bank, or your education loan provider.

Let your journey to global education begin – with hope, support, and a little help from Padho Pardesh.


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