Padho Pardesh scheme discontinued by Ministry of Minority Affairs: The Ministry of Minority Affairs (MoMA) has discontinued the scheme of interest subsidy on education loans for overseas studies for students belonging to minority communities (Padho Pardesh). The Indian Banks’ Association informed all banks last month that the Padho Pardesh Interest Subsidy Scheme would not be continued in 2022–2023. Until now, Canara Bank, the designated nodal bank, has carried out the scheme. The existing beneficiaries as on March 31, 2022, will continue to receive the interest subsidy during the moratorium period of the loan, subject to compliance with the extant guidelines, according to the Association’s communication to Banks.
January 2023 Current Affairs Quiz
Padho Pardesh Interest Subsidy Scheme from 2022-23: Objective
The objective of the scheme, which was part of the then Prime Minister’s June 2006 fifteen-point programme for the welfare of minorities, is to award interest subsidy to meritorious students belonging to economically weaker sections of notified minority communities to provide them better opportunities for higher education at Masters, M.Phil and Ph.D levels abroad and enhance their employability.
About the Padho Pardesh Interest Subsidy Scheme from 2022-23
Under the scheme, interest payable by the students availing education loans as prescribed under the Education Loan Scheme of the IBA for the period of moratorium (that is course period, plus one year or six months after getting a job, whichever is earlier) shall be borne by the Government of India.
After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the student, in accordance with the existing Educational Loan Scheme. Beyond the moratorium period, the Candidate shall be responsible for the Principal Instalments and Interest.
Important takeaways for all competitive exams:
- Canara Bank Headquarters: Bengaluru;
- Canara Bank Founder: Ammembal Subba Rao Pai;
- Canara Bank MD and CEO: L V Prabhakar;
- Canara Bank Founded: 1 July 1906.