Canara Padho Pardesh Interest Subsidy

About Canara Padho Pardesh Interest Subsidy

The Padho Pardesh Interest Subsidy Scheme aimed to boost minority community educational pursuit by providing Education Loan borrowers with an interest rate reduction during their study abroad period. The interest paid during the moratorium period will receive financial support from the subsidy program. This period includes both the length of study and a single-year or half-year period after employment.

Canara Padho Pardesh Interest Subsidy – Key Benefits

• The Interest subsidy scheme allows banks to eliminate entirely the interest expenses students pay for education loans acquired during the period of unemployment relief.

• Students enrolled in Master's, M.Phil. and Ph.D. degrees could utilise the subsidy to pay their study expenses abroad.

• The implementing agency function belonged to Canara Bank, which partnered with other banks to administer subsidy distribution.

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Eligibility Criteria

Applicants needed to fulfil specified qualifications to benefit from the Padho Pardesh scheme.

• The minority community includes Muslims together with Christians, Sikhs, Buddhists, Jains and Parsis (Zoroastrians) who are part of notified communities.

• The student can enter an approved degree program at respected foreign educational institutions where they obtained admission.

• The family earned a maximum of ₹6 lakh through all their income streams throughout the year.

• Students obtained Education Loan approvals through Scheduled Banking Institutions using the principles from the Indian Banks' Association (IBA) Model Education Loan Scheme.

Application Process

Three specific conditions existed for students who sought benefits from the Padho Pardesh interest subsidy program:

• Students must open applications for education loans at scheduled banking institutions to fund their overseas educational expenses.

• Students must provide admission documentation to the borrowing bank after bank confirmation that they qualify for loans. They also need to present proof of their minority membership and their income evidence.

• The Padho Pardesh portal of Canara Bank allows the lending bank to activate the subsidy process by uploading student information.

Tax Benefits on Education Loans

Tax benefits extend to people who acquire education loans through the Income Tax Act under Section 80E. Tax deductions based on Section 80E of the Income Tax law are available to those who paid education loan interest after their revoked standing is terminated. The Indian income tax regulations, through Section 80E only allow certain interest payments to qualify for deduction according to specific conditions. The Section 80E income tax benefit spans an eight-year duration. The entire 8-year duration qualifies for this benefit, which begins from the start.

Calculating Loan Repayments

Online income tax calculators demonstrate to borrowers their loan repayment obligations while showing them potential tax benefits available to them. Through the finance tools users obtain vital knowledge about upcoming payment advantages together with tax saving advantages.

Conclusion

Under the Padho Pardesh Interest Subsidy Schememinority students gain substantial advantages to reduce their international educational loan interest costs for their studies. Even though the scheme has ended the ability to claim tax deductions from student education loans under Section 80E stays intact.