Executive Summary:
This document presents the Ministry of Minority Affairs' response to questions regarding subsidised educational loans for minority students, including details on beneficiaries, subsidies provided, and efforts to improve participation. The Padho Pardesh Scheme, which provided interest subsidies for overseas studies, was discontinued from 2022-23 due to overlaps with other schemes and limited benefits. The National Minorities Development Finance Corporation (NMDFC) continues to provide educational loans at concessional rates.
Key Points / Main Content:
Padho Pardesh Scheme:
* The Padho Pardesh Scheme, offering interest subsidies on education loans for overseas studies for notified minority communities, has been discontinued from 2022-23.
* The decision was influenced by limited benefits and overlap with similar schemes implemented by other ministries.
NMDFC Educational Loans:
* NMDFC provides educational loans at lower interest rates exclusively to students from minority communities.
* Under Credit Line 1, the annual family income eligibility is up to Rs. 3.00 lakhs p.a. for both rural and urban areas.
* Under Credit Line 2, individuals with annual family income up to Rs. 8.00 lakhs p.a. can access higher financial assistance at a higher interest rate.
* Loan amounts up to Rs. 20.00 lakhs for courses in India and Rs. 30.00 lakhs for courses abroad are available.
* Interest rates are 3% p.a. under Credit Line 1 and, under Credit Line 2, 8% p.a. for male beneficiaries and 5% p.a. for female beneficiaries.
* Loans are disbursed based on demand from States/UTs through State Channelizing Agencies (SCAs).
* NMDFC loans are already offered at concessional rates, and no difficulties with repayment periods have been reported.
Beneficiary and Subsidy Details:
* Annexure details state-wise interest subsidy and funds released under the Padho Pardesh Scheme from 2020-21 to 2024-25.
* Annexure also provides State/UT-wise details of concessional loans disbursed and the number of students assisted under the NMDFC education loan scheme for the last five years (2020-21 to 2024-25).
Impact Analysis:
Minority Students:
* Impact: Reduced access to interest subsidies for overseas education through the Padho Pardesh scheme; continued access to educational loans at concessional rates through NMDFC.
* Action Required: Explore educational loan options through NMDFC and State Channelizing Agencies (SCAs).
State Governments/UT Administrations:
* Impact: Continued role in implementing NMDFC schemes through State Channelizing Agencies (SCAs), facilitating loan distribution based on local demand.
* Action Required: Continue to nominate SCAs and facilitate the implementation of NMDFC educational loan schemes based on demand.
NMDFC:
* Impact: Continued responsibility for providing educational loans at concessional interest rates to minority students.
* Action Required: Maintain concessional interest rates and monitor loan repayment, addressing any difficulties that may arise.
Key Entities Referenced
Ministry of Minority Affairs: The Indian government ministry responsible for minority affairs, overseeing schemes like Padho Pardesh and NMDFC.
Padho Pardesh Scheme: A scheme implemented by the Ministry of Minority Affairs providing interest subsidy on educational loans for overseas studies obtained by students from notified minority communities. It was discontinued from 2022-23 onwards.
National Minorities Development Finance Corporation (NMDFC): A Government of India undertaking under the Ministry of Minority Affairs that provides educational loans at lower interest rates to students belonging to minority communities.
Credit Line 1: A NMDFC scheme with annual family income eligibility criterion upto Rs. 3.00 lacs p.a. for both rural & urban areas.
Credit Line 2: A NMDFC scheme where persons with higher annual family income of upto Rs.8.00 lacs p.a. can avail higher quantum of financial assistance at a higher rate of interest.
Andhra Pradesh: A state in India which has beneficiaries of the Padho Pardesh Scheme.
Kerala: A state in India with a significant number of beneficiaries under the Padho Pardesh Scheme and NMDFC education loan.
Tamil Nadu: A state in India which has beneficiaries of the Padho Pardesh Scheme and NMDFC education loan.
GOVERNMENT OF INDIA
MINISTRY OF MINORITY AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 1683
ANSWERED ON 30/07/2025
SUBSIDISED EDUCATIONAL LOAN
1683. SHRI ARUN BHARTI:
Will the Minister of MINORITY AFFAIRS be pleased to state:
(a) the details of the students who have been benefited from the subsidised educational loan scheme
during the last five years, State-wise and year-wise;
(b) the details of the total amount of subsidies provided under the educational loan scheme for minority
students since 2020, State-wise and year-wise;
(c) the details of the States which have seen the highest number of beneficiaries under this scheme and the
efforts being made to improve participation in under represented regions;
(d) the steps taken by the Government to ensure that minority students from economically weaker
sections may access quality higher education through subsidised loans; and
(e) whether the Government is considering to increase the subsidy amount or extending the repayment
period for students facing financial difficulties and if so, the details thereof?
ANSWER
THE MINISTER OF MINORITY AFFAIRS
(SHRI KIREN RIJIJU)
(a) to (d): Ministry of Minority Affairs has implemented Padho Pardesh Scheme for providing subsidy on
the interest payable during the period of moratorium on the educational loan, obtained by students
belonging to the notified minority communities, for overseas studies. In recent years, the Government
eased the norms and has made various educational loans available to students conveniently, through
Public Sector Banks. It was observed that benefits of interest subsidy that get accrued to the beneficiaries
under the Padho Pardesh scheme were limited and also that there was an apparent overlap with other
similar schemes being implemented by other Ministries which were applicable to eligible minority
community students as well. In view of such overlaps, limited benefits and ease of availing education
loans on lower rates of interest, the Scheme had been discontinued from 2022-23 onwards.
The National Minorities Development & Finance Corporation (NMDFC), a Government of India
undertaking under Ministry of Minority Affairs, also provides educational loan, at lower rate of interest,
exclusively to students belonging to minority communities. The eligibility criteria under NMDFC
schemes are as follows:
The annual family income eligibility criterion under Credit Line-1 is upto Rs. 3.00 lacs p.a. for both
rural & urban areas. Under Credit Line -2, persons with higher annual family income of upto Rs.8.00 lacs
p.a. can avail higher quantum of financial assistance at a higher rate of interest.Under NMDFC Education Loan scheme, loan of up to Rs.20.00 lacs for courses in India &
Rs.30.00 lacs for courses abroad is available at an interest rate of 3% p.a. under Credit Line-1 while
interest @ of 8% p.a. is charged from male beneficiaries & 5% p.a. from female beneficiaries under
Credit Line-2. The schemes of NMDFC (including education loan scheme) are implemented through
State Channelizing Agencies (SCAs) nominated by respective State Govt./ UT Administration. The
education loans are extended based on actual demand from the respective States/UTs.
The details of the students who have been benefited from these loan scheme during the last five years,
state-wise and year-wise is at annexure.
(e): As far as education loans given by NMDFC is concerned, the loans are being extended at interest
rates of 3-8% per annum, which is already concessional as compared to prevailing market rates, and
NMDFC has not been reported any difficulty on account of repayment period so far.
*****ANNEXURE REFERRED IN REPLY TO PARTS (a) to (d) OF LOK SABHA UNSTARRED
QUESTION NO. 1683 FOR 30.07.2025 REGARDING “SUBSIDISED EDUCATIONAL LOAN”.
State-wise Interest Subsidy and fund released under Padho Pardesh Scheme
2024-25 (upto
2020-21 2021-22 2022-23 2023-24
30.09.2024)
S.
No States Fund Fund Fund Fund Fund
N.o. of N.o. of N.o. of N.o. of N.o. of
. released released released released released
benefici benefi benefi benefi benefic-
(In Rs. (In Rs. (In Rs. (In Rs. (In Rs.
a-rie c-iarie c-iarie c-iarie iarie
Lakh) Lakh) Lakh) Lakh) Lakh)
1 Andhra 91 60.06 81 50.97 46 45.38 28 29.56 10 5.21
Pradesh
2 Assam 6 3.20 1 0.28 0 0.00 0 0.00 0 0.00
3 Bihar 11 3.78 8 2.40 6 3.42 4 2.83 0 0.00
4 Chandigarh 3 1.38 2 0.25 1 1.67 1 1.20 0 0.00
5 Chhattisgar 3 1.91 1 1.21 1 0.84 1 0.27 0 0.00
h
6 Delhi 19 8.23 13 5.64 8 5.73 4 3.45 2 1.40
7 Goa 13 9.76 4 3.41 3 1.38 1 0.54 0 0.00
8 Gujarat 103 67.37 82 45.08 55 52.71 37 32.87 11 4.95
9 Haryana 14 5.04 12 5.63 11 6.15 5 4.66 2 0.37
10 Himachal 1 1.05 0 0.00 0 0.00 0 0.00 0 0.00
Pradesh
11 Jammu & 132 60.27 202 65.07 149 75.06 97 43.78 29 5.79
Kashmir
12 Jharkhand 8 2.46 6 2.29 2 1.13 1 0.19 0 0.00
13 Karnataka 275 195.12 229 130.33 129 122.34 57 44.00 11 5.29
14 Kerala 2236 1360.2 3359 1710.8 2364 2243.1 1643 1325.2 380 162.28
9 4 2 7
15 Madhya 82 50.39 51 30.17 33 32.87 16 15.16 4 3.22
Pradesh
16 Maharashtr 300 225.79 265 194.36 148 140.90 74 60.51 11 5.08
a
17 Odisha 4 4.42 5 3.20 2 3.12 2 1.25 0 0.00
18 Puducherry 12 9.60 9 6.39 5 4.58 3 1.00 0 0.00
19 Punjab 59 22.21 74 21.11 46 26.00 29 18.68 10 4.09
20 Rajasthan 27 15.06 24 12.90 18 17.20 13 6.42 1 0.37
21 Tamil 133 79.81 108 58.70 58 46.68 38 32.27 6 3.14
Nadu
22 Telangana 63 40.11 53 27.97 32 22.10 13 12.64 5 3.07
23 Uttar 30 15.00 15 8.13 11 8.14 8 5.94 0 0.00
Pradesh
24 Uttrakhand 12 4.32 7 4.59 7 5.90 4 2.12 0 0.00
25 West 19 8.38 11 7.95 5 4.80 2 4.03 1 0.53
Bengal
TOTAL 3656 2255 4622 2399 3140 2871 2081 1649 483 205Year -wise & State/UT wise details of concessional loan disbursed & no. of students assisted under NMDFC
education loan during last 5 years
(Amount Rs. in cr)
2020-21 2021-22 2022-23 2023-24 2024-25
Sl. No. of No. of No. of No. of No. of
NO. State/UT Amt. Students Amt. Students Amt. Students Amt. Students Amt. Students
1 Chandigarh 10.03 1 0 0 0 0 0 0 0 0
2 Gujarat 1.34 68 0.74 37 0.23 13 0 0 0 0
Himachal
3 Pradesh 0.07 8 0.16 7 0.34 14 0.19 5 0.11 2
Jammu &
4 Kashmir 5.66 115 9.33 158 4.74 85 1.52 53 2.61 103
5 Kerala 9.29 637 8.07 467 12.93 686 4.32 246 4.00 243
6 Maharashtra 0 0 0 0 0 0 2.08 163 0 0
7 Rajasthan 0 0 0 0 0.33 20 0.67 35 0 0
8 Tamil Nadu 0.09 7 0.09 7 0.15 14 0.03 5 0.1 10
9 Tripura 0.35 37 0.46 46 0.38 38 0 0 0 0
10 Uttarakhand 0.11 3 0.01 1 0 0 0 0 0 0
West
11 Bengal 79.11 1831 0 0 16.53 1194 3.66 166 15.99 646
Total 106.05 2707 18.86 723 35.63 2064 12.47 673 22.81 1004