Padho Pardesh scheme discontinued by MoMA

Category : National Published on: January 23 2023

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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).
All banks were notified by the Indian Banks’ Association last month about the discontinuation of the Padho Pardesh Interest Subsidy Scheme from 2022-23.
The scheme so far was being implemented through Canara Bank, the designated nodal bank.
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.
As per MoMA’s latest annual report, during the year 2020-21, an amount of ₹20.20 crore was released to Canara Bank for reimbursement of interest subsidy of fresh plus renewal candidates under the Scheme.