PSB Padho Pradesh Scheme for Studying Abroad

About the PSB Padho Pradesh Scheme for Studying Abroad

The PSB Padho Pradesh Scheme of Interest Subsidy on Educational Loans for Overseas Studies is a Central Government initiative. It is implemented through scheduled banks under the Indian Banks’ Association (IBA) framework and monitored via the Ministry of Minority Affairs portal (not limited to a single bank like Punjab & Sindh Bank). The education loan scheme is only restricted to the students who are members of minority communities as stated in Section 2(c) of the National Commission for Minorities Act, 1992.

PSB Padho Pradesh Scheme for Studying Abroad - Rate of Interest

Under this scheme, the Government of India pays the entire interest on the education loan during the moratorium period. The benefit applies only to those loans taken from scheduled banks under the IBA-approved education loan scheme.

The interest rates typically follow the EBLR structure:

• Loans above ₹7.5 lakh for overseas education may have rates like EBLR (7.55%) + 1.85% = 9.40%

The interest subsidy is credited directly to the loan account through the Direct Benefit Transfer (DBT) system during the moratorium period. If you want to structure your overseas studies better, consider exploring tools such as a child education allowance to plan for your child’s future academic needs.

If you want to structure your overseas studies better, consider exploring tools such as a child education plan calculator to estimate future academic expenses.

Investment

Secure

Secure your child’s future with or without you

Start Investing

₹10,000/Month

& Get

₹1 Crore^*

VIEW PLANS

*Standard T & C Apply

Features of the PSB Padho Pradesh Scheme for Studying Abroad

Here are the features of the PSB Padho Pradesh Scheme for studying abroad:

• Moratorium Interest Coverage: The government will cover all the interests within the course term and a grace period of one year.
• Applicable Once Only: The Subsidy is provided once during the level of Master's or PhD.
• Linked to IBA Loan Scheme: Requirement: Has to be availed together with Punjab & Sind Bank education loan with a scheduled bank, along with IBA requirements.
• Gender Quota: According to the scheme, 35% of the overall slots will be taken over by female students.
• Selection Committee Process: This is the process in which the awarding of subsidies is achieved, and the process is conducted by a committee that is instituted by the Ministry of Minority Affairs.
• Online Application Mandate: Applications must be submitted through the National Scholarship Portal (NSP) within the prescribed timeline.

Eligibility Criteria for PSB Padho Pradesh Scheme for Studying Abroad

The PSB Padho Pradesh Scheme has the following eligibility requirements for studying abroad:

• Community Status: Applicant should be a member of a legally-notified minority community.
• Admission Proof: Must have secured admission abroad in an approved Master's, M.Phil, or PhD programme.
• Loan Requirement: A typical education loan of a scheduled bank under the IBA scheme must be approved.
• Fresh Application Timing: The subsidy will only be applied in the first year of the course; no subsequent applications will be taken.
• Income Limit: The annual family income from all sources must not exceed ₹6 lakh, verified through a valid income certification.

Planning early through a child's education plan can make funding education abroad easier and reduce reliance on loan subsidies.

Documents Required for the PSB Padho Pradesh Scheme for Studying Abroad

The following documents are required to apply to the PSB Padho Pradesh Scheme to study abroad:

• Proof of minority community status.
• An admission letter from a foreign institution.
• Copy of the education loan sanction letter.
• An income certificate issued by a competent state authority.
• Valid Indian passport.
• Declaration form and affidavit (if applicable).
• Aadhaar-linked bank account details for DBT verification (where applicable).

People also read: Sukanya Samriddhi Yojana

Most Important Terms and Conditions

Here are some of the most important terms and conditions for the PSB Padho Pradesh Scheme:

• Course Discontinuation Clause: In case a student is expelled or drops out, he will not be entitled to the subsidy.
• Citizenship Requirement: If the student renounces their Indian citizenship while on the loan, the subsidy will be withdrawn.
• False Document Penalty: Any falsification causes an immediate termination of subsidies and leads to prosecution.
• Post-Moratorium Liability: Student is liable for all the interests and instalments following the termination of the moratorium.
• Subsidy Cap Condition: The interest subsidy is applicable only for the approved loan amount under the IBA scheme and is subject to government allocation limits.