Padho Pardesh – Scope of scheme, Eligibility

In June of 2006, the Prime Minister launched his new 15-point plan for the welfare of minorities. It states that scholarship schemes for deserving students from minority populations shall be developed and executed. In addition, interest Subsidies on Educational Loans for Overseas Studies will help students from minority groups advance their education.

The scheme’s goal is to offer meritorious students from economically disadvantaged parts of registered minority communities with interest subsidies to pursue higher education overseas and improve their employability.

Scope of the scheme

This is a Central Sector Scheme to provide interest subsidy to students from minority communities, as defined by section 2 (c) of the National Commission for Minorities Act, 1992, on the interest payable for the period of the moratorium for Education Loans under the Scheme of Interest Subsidy on Educational Loans for Overseas Studies, to pursue approved courses of study abroad at the Masters and M.Phil/Ph.D levels.

Administrative Expenses

Under this programme, the ministry will set aside up to 5% of the annual allocation to cover administrative and linked expenditures, such as spending on office equipment, including computers and accessories, ads, employee engagement, and holding workshops and conferences. Workshops and conferences will also feature Ministry-organised gatherings to popularise and promote the plan by displaying successful companies and recipients. All expenses related to conducting and organising the event, including TA/DA and incidental, will be included in the cost. The Bank’s administrative costs for implementing the plan will be split as specified in the MoU. This provision will also be used for the scheme’s evaluation and monitoring, carried out by reputable outside institutions/agencies. The Ministry of Minority Affairs, Government of India, shall periodically examine the scheme’s financial and physical performance by appointing evaluation/impact studies to respected institutions/ organisations.

Rate of Interest Subsidiary

The Government of India will bear the interest payable by students who take out IBA education loans for the term of moratorium (i.e. course period plus one year or six months after acquiring a job, whichever comes first) as provided by the IBA Education Loan Scheme. After the moratorium period has expired, the student is responsible for paying the interest on the outstanding loan amount in line with the current Educational Loan Scheme, as amended from time to time. Beyond the moratorium period, the Candidate will be responsible for the principal instalments and interests.

Interest subsidiary Conditions

• The Scheme applies to international higher education. The interest subsidy will be tied to the Indian Banks’ Association’s (IBA) existing Educational Loan Scheme. It will be limited to students enrolling in Masters, M.Phil, and PhD level courses as specified in para 14.
• The interest subsidy under the scheme is only accessible to qualifying students once, whether at the Master, M.Phil., or PhD level. Students who drop out of school in the middle of a course for any reason or are dismissed from the institution for disciplinary or academic reasons will not be eligible for interest subsidies.
• If it is discovered that a student has broken any of the scheme’s terms, the subsidy will be terminated immediately.
• Suppose a student is determined to have gained a subsidy by making false statements, documents, or certifications. In that case, the subsidy will be immediately withdrawn/cancelled. In addition, the amount of the subsidy previously paid will be recovered with penal interest and initiate criminal action as required by law.
• If a student receives benefits under this scheme and then takes up Indian citizenship during the period, he will not be eligible for the interest subsidy.
• The selected bank will keep track of the funds received from the ministry in a separate account, keep records, and provide a quarterly report to the Ministry. The account and records will be available for inspection and audit by Ministry officers or any other agency designated by the Ministry of C & AG.
• Any further funds for interest subsidy payments will be issued to the designated Bank only when the utilisation certificate for previous releases is received, as required by GFR.
• The chosen Bank must post all necessary financial and physical accomplishments on its website and operate the scheme by the Memorandum of Understanding (MoU) that the designated Bank and the Ministry of Minority Affairs will sign.
•  Students from minority communities, who may also fall under the SC/ST/OBC categories, will not be eligible for interest subsidies under other Central Government/State Government initiatives for the same reason, according to the approved Bank.
• In conjunction with the Ministry of Minority Affairs, the designated Bank shall spell out the complete procedure for processing and authorising interest subsidies to qualified students.
• Based on the Census of 2011, quotas have been set for each state/UT and community, as shown in Annexure-I. The benefit of the Interest Subsidy will be delivered to notified minority populations to the degree practicable, according to the quota set. Seats can be transferred to other States or communities if students in one State or community are unavailable.
• The scheme’s terms and conditions can be altered at any time at the Ministry of Minority Affairs’ discretion to make the scheme’s execution more transparent and effective.

Monitoring and Transparency

The Ministry of Minority Affairs will monitor the scheme’s performance. A web-enabled monitoring mechanism will be put in place by the selected Bank. The Ministry will require the Designated Nodal Bank to submit quarterly financial and physical progress reports. The designated Nodal Bank shall keep year-by-year records of students receiving benefits, including the institute, location of the institute, class, gender, new or renewal, permanent address, parents’ address, and contact numbers and e-mail addresses. The official website of the designated nodal bank must include all important physical and financial information. The Ministry of Minority Affairs, Government of India, shall periodically examine the scheme’s financial and physical performance by appointing evaluation/impact studies to respected institutions/ organisations.

Eligibility

• For the courses listed in Para-14, the student must have achieved admission to accredited Master’s, M.Phil., or PhD programmes overseas.
•  They should have taken out a loan from a scheduled bank under the Indian Banks Association’s (IBA) Education Loan Scheme.
•  Students should apply for the scheme’s benefits during their first year of study. In any case, new applications received during the second or future years will not be considered.
• Applications covered under a reduced interest rate by multiple banks for each State/quota UT will be prioritised.
• If an Aadhaar number is accessible, payment of financial benefits may be connected. The Gazetted Notification S. O. 2409 (E) dated 14th June 2017 issued under Section-7 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits, and Services) Act, 2016 (18 of 2016) published on July 31, 2017, maybe consulted in this respect.