PNB Padho Pardesh

About the Scheme

The PNB Padho Pardesh Scheme has been launched to support students in overseas education through full interest coverage on their education loans for a certain prescribed period. This facility is applicable during the entire loan term and has a specific extension period thereafter. Thus, students do not have to serve any interest during this phase, making the loan repayment easy. The scheme helps students studying abroad by covering interest costs during the loan moratorium, allowing them to focus on their studies and careers.

Rate of Interest

The Padho Pardesh scheme offers an interest subsidy to ease the financial burden on students during their studies. Key details include:

• The government covers interest during the moratorium period (course duration + 1 year or 6 months after securing a job, whichever is earlier).

• The student requires no interest payment during this period.

• After the moratorium period, the student repays the outstanding loan with interest as per PNB’s education loan terms.

Features of the Scheme

• Total Interest Subsidy : Covers the interest payable during the moratorium period of the loan.

• No Repayment During the Courses : Interest payment will start only after the end of the moratorium.

• Financial Support : Helps families manage a child education plan by reducing the financial burden of overseas studies.

• Minority Community Benefit : Only for notified minority students.

• Long-Term Planning: Better financial management for maintaining a child investment plan and education costs is much easier.

Investment

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Eligibility of the Scheme

To be eligible for the benefit of the PNB Padho Pardesh education loan scheme, the students have to fulfil the following conditions:

• Must belong to a notified minority community (Muslim, Christian, Sikh, Buddhist, Jain, or Parsi).

• Must be admitted to an approved Master's, M.Phil, or Ph.D. course abroad.

• Must have taken an education loan from a scheduled bank as per the IBA scheme.

• Total family income should not be more than ₹6 lakh per year with a valid income certificate.

• It is a one-time subsidy for overseas studies for the student.

Documents Required

The following documents must be submitted by applicants to avail of the subsidy:

• A confirmed admission letter from a foreign university.

• A loan sanction letter from any scheduled bank.

• A copy of the current income certificate issued by any State/UT authority.

• Identity and address proof.

• A minority community certificate.

Most Important Terms and Conditions

• Duration of subsidy: The interest subsidy shall be available only during the moratorium period, and thereafter, the borrower shall repay the principal and interest as per the terms and conditions of the loan.

• Citizenship: The borrower must remain an Indian citizen throughout the loan. Loss of citizenship will cause the cancellation of the subsidy.

• Inaccuracy of Information: Wrong or misleading information given by a borrower shall lead to subsidy cancellation and possibly legal action.

• Policy Changes: The scheme is subject to modifications per directives from the Ministry of Minority Affairs.

• Tax Deduction: After the end of the moratorium, the interest paid on the education loan shall be eligible for tax deduction under Section 80E of the Income Tax Act.