SBI Padho Pardesh Interest Subsidy Scheme

About the Scheme

The SBI Padho Pardesh Interest Subsidy Scheme is designed to help students from economically weaker sections (EWS) access quality education in foreign countries. The scheme covers education loans for various graduate, post-graduate, and professional courses offered by reputed institutions across the globe. It offers attractive interest subsidies, making studying abroad more affordable for deserving students.

Schemes - Rate of Interest

Under the SBI Padho Pardesh Interest Subsidy Scheme, the rate of interest varies based on the loan amount and the applicant’s financial background. Here’s a breakdown:

• Loan amount up to ₹7.5 lakh: The interest rate is subsidized by the government, ensuring minimal burden on the borrower.

• Loan amount above ₹7.5 lakh: The interest rate is determined as per the prevailing terms of the bank but still benefits from the subsidy.

As a student, you can also benefit from the Section 80E of the Income Tax Act, which allows you to claim tax deductions on the interest paid for education loans. Use this income tax calculator to estimate your potential tax benefits.

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Features of the Scheme

Here are some key features of the SBI Padho Pardesh Interest Subsidy Scheme:

• Loan Coverage: The loan covers tuition fees, examination fees, travel expenses, and other academic-related costs.

• Moratorium Period: Students enjoy a repayment moratorium, meaning repayment starts one year after course completion or six months after securing a job.

• Interest Subsidy: Government subsidy on interest for economically weaker sections (EWS).

• Loan Limit: Up to ₹20 lakh for undergraduate and postgraduate courses abroad, ensuring ample coverage for various educational expenses.

• Flexible Repayment: Repayment options are flexible, and students can choose a tenure based on their financial situation.

This scheme works in tandem with other educational programs like the SBI education loan, which can help in financing your studies at prestigious institutions.

Eligibility of the Scheme

To be eligible for the SBI Padho Pardesh Interest Subsidy Scheme, you need to meet the following criteria:

• Nationality: Indian citizens with valid proof of nationality.

• Income Criteria: The scheme is primarily for students from economically weaker sections, whose family income is less than ₹8 lakh per annum.

• Course: The applicant should have secured admission to a recognised course at a reputed foreign institution.

• Age: Applicants should be below 35 years of age.

• Co-Borrower: A co-borrower, such as a parent or guardian with a stable income, is required.

Additionally, this scheme is beneficial for parents looking to secure their child's future through options like a child education plan or child investment plan, which ensures that they have enough resources to support their child's educational aspirations.

Documents Required

Here is a list of documents required to apply for the scheme:

• Admission Letter: From the foreign educational institution.

• Fee Structure: Detailing tuition and other associated costs.

• Academic Records: Marksheets and certificates of prior education.

• Proof of Identity: For both the applicant and co-borrower.

• Proof of Income: Income certificate of the co-borrower.

Important Terms and Conditions

The SBI Padho Pardesh Interest Subsidy Scheme is designed to provide financial assistance to students pursuing higher studies abroad. Below are the key terms and conditions for availing the benefits under this scheme:

1. Eligibility for Courses:

   • The scheme applies to students enrolled in Master’s, M.Phil, and Ph.D. programs abroad as specified in paragraph 14 of the scheme guidelines.

   • Subsidy benefits are restricted to one-course level per student, either Master’s, M.Phil, or Ph.D.

2. Single-Time Benefit:

   • Eligible students can avail of the subsidy only once during their academic pursuit at any of the specified levels.

   • Students discontinuing their courses mid-stream or those expelled due to disciplinary or academic issues will not qualify for the subsidy.

3. Compliance Requirements:

   • Violation of any condition stated in the scheme will result in the immediate discontinuation of the subsidy.

   • Students providing false statements, documents, or certificates to obtain the subsidy will face subsidy withdrawal, recovery of funds with penal interest, and possible criminal action under applicable laws.

4. Citizenship Condition:

   • Students will forfeit the subsidy if they give up their Indian citizenship during the loan tenure.

5. Bank Obligations:

   • The designated bank is required to maintain a separate account and records for funds received from the Ministry.

   • Banks must submit quarterly reports to the Ministry for audit and inspection by authorized agencies.

   • Additional funds will be released only upon submission of utilization certificates as per General Financial Rules (GFR).

6. Transparency Measures:

   • Financial and physical progress must be uploaded by the designated bank on its official website.

   • The scheme is implemented in accordance with the Memorandum of Understanding (MoU) signed between the bank and the Ministry of Minority Affairs.

7. No Dual Subsidy:

   • Students belonging to Minority Communities who also fall under SC/ST/OBC categories cannot avail subsidies from other Central or State Government schemes for the same purpose.

8. Processing and Quota Allocation:

   • The detailed procedure for processing and sanctioning subsidies will be developed by the designated bank in consultation with the Ministry.

   • State/UT-wise and Community-wise quotas based on Census 2011 are fixed, as outlined in Annexure-I.

   • If no eligible students are available in a State or community, seats may be transferred to other States or communities.

9. Scheme Evaluation:

   • The scheme will undergo regular evaluations by the Ministry or any appointed agency to ensure its effective implementation.

10. Policy Updates:

    • The Ministry of Minority Affairs reserves the right to amend the terms and conditions of the scheme at any time to improve transparency and effectiveness.

Students aspiring to study abroad are encouraged to carefully review these terms and conditions before applying for the SBI Padho Pardesh Interest Subsidy Scheme.