Lok Sabha Question No. 1683 (UNSTARRED), answered on 2025-07-30
Subject: Subsidised Educational Loan
Ministry: MINORITY AFFAIRS
Asked by: Shri Arun Bharti

## 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

## GOVERNMENT OF INDIA MINISTRY OF MINORITY AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1683

ANSWERED ON 30/07/2025

## SUBSIDISED EDUCATIONAL LOAN

## 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   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   | State-wise Interest Subsidy and fund released under Padho Pardesh Scheme   |
|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|----------------------------------------------------------------------------|
| S. No .                                                                    | States                                                                     | 2020-21                                                                    | 2020-21                                                                    | 2021-22                                                                    | 2021-22                                                                    | 2022-23                                                                    | 2022-23                                                                    | 2023-24                                                                    | 2023-24                                                                    | 2024-25 (upto 30.09.2024)                                                  | 2024-25 (upto 30.09.2024)                                                  |
| S. No .                                                                    | States                                                                     | N.o. of benefici a-rie                                                     | Fund released (In Rs. Lakh)                                                | N.o. of benefi c-iarie                                                     | Fund released (In Rs. Lakh)                                                | N.o. of benefi c-iarie                                                     | Fund released (In Rs. Lakh)                                                | N.o. of benefi c-iarie                                                     | Fund released (In Rs. Lakh)                                                | N.o. of benefic- iarie                                                     | Fund released (In Rs. Lakh)                                                |
| 1                                                                          | Andhra Pradesh                                                             | 91                                                                         | 60.06                                                                      | 81                                                                         | 50.97                                                                      | 46                                                                         | 45.38                                                                      | 28                                                                         | 29.56                                                                      | 10                                                                         | 5.21                                                                       |
| 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 h                                                              | 3                                                                          | 1.91                                                                       | 1                                                                          | 1.21                                                                       | 1                                                                          | 0.84                                                                       | 1                                                                          | 0.27                                                                       | 0                                                                          | 0.00                                                                       |
| 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 Pradesh                                                           | 1                                                                          | 1.05                                                                       | 0                                                                          | 0.00                                                                       | 0                                                                          | 0.00                                                                       | 0                                                                          | 0.00                                                                       | 0                                                                          | 0.00                                                                       |
| 11                                                                         | Jammu& Kashmir                                                             | 132                                                                        | 60.27                                                                      | 202                                                                        | 65.07                                                                      | 149                                                                        | 75.06                                                                      | 97                                                                         | 43.78                                                                      | 29                                                                         | 5.79                                                                       |
| 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 9                                                                   | 3359                                                                       | 1710.8 4                                                                   | 2364                                                                       | 2243.1 2                                                                   | 1643                                                                       | 1325.2 7                                                                   | 380                                                                        | 162.28                                                                     |
| 15                                                                         | Madhya Pradesh                                                             | 82                                                                         | 50.39                                                                      | 51                                                                         | 30.17                                                                      | 33                                                                         | 32.87                                                                      | 16                                                                         | 15.16                                                                      | 4                                                                          | 3.22                                                                       |
| 16                                                                         | Maharashtr a                                                               | 300                                                                        | 225.79                                                                     | 265                                                                        | 194.36                                                                     | 148                                                                        | 140.90                                                                     | 74                                                                         | 60.51                                                                      | 11                                                                         | 5.08                                                                       |
| 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 Nadu                                                                 | 133                                                                        | 79.81                                                                      | 108                                                                        | 58.70                                                                      | 58                                                                         | 46.68                                                                      | 38                                                                         | 32.27                                                                      | 6                                                                          | 3.14                                                                       |
| 22                                                                         | Telangana                                                                  | 63                                                                         | 40.11                                                                      | 53                                                                         | 27.97                                                                      | 32                                                                         | 22.10                                                                      | 13                                                                         | 12.64                                                                      | 5                                                                          | 3.07                                                                       |
| 23                                                                         | Uttar Pradesh                                                              | 30                                                                         | 15.00                                                                      | 15                                                                         | 8.13                                                                       | 11                                                                         | 8.14                                                                       | 8                                                                          | 5.94                                                                       | 0                                                                          | 0.00                                                                       |
| 24                                                                         | Uttrakhand                                                                 | 12                                                                         | 4.32                                                                       | 7                                                                          | 4.59                                                                       | 7                                                                          | 5.90                                                                       | 4                                                                          | 2.12                                                                       | 0                                                                          | 0.00                                                                       |
| 25                                                                         | West Bengal                                                                | 19                                                                         | 8.38                                                                       | 11                                                                         | 7.95                                                                       | 5                                                                          | 4.80                                                                       | 2                                                                          | 4.03                                                                       | 1                                                                          | 0.53                                                                       |
|                                                                            | TOTAL                                                                      | 3656                                                                       | 2255                                                                       | 4622                                                                       | 2399                                                                       | 3140                                                                       | 2871                                                                       | 2081                                                                       | 1649                                                                       | 483                                                                        | 205                                                                        |

Year -wise & State/UT wise details of concessional loan disbursed & no. of students assisted under NMDFC education loan during last 5 years

(Amount Rs. in

| Sl. NO.   |                  | 2020-21   | 2020-21         | 2021-22   | 2021-22         | 2022-23   | 2022-23         | 2023-24   | 2023-24         | 2024-25   | 2024-25   |
|-----------|------------------|-----------|-----------------|-----------|-----------------|-----------|-----------------|-----------|-----------------|-----------|-----------|
| Sl. NO.   | State/UT         | Amt.      | No. of Students | Amt.      | No. of Students | Amt.      | No. of Students | Amt.      | No. of Students | Amt.      | No. Stude |
| 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         |
| 3         | Himachal Pradesh | 0.07      | 8               | 0.16      | 7               | 0.34      | 14              | 0.19      | 5               | 0.11      | 2         |
| 4         | Jammu& Kashmir   | 5.66      | 115             | 9.33      | 158             | 4.74      | 85              | 1.52      | 53              | 2.61      | 10        |
| 5         | Kerala           | 9.29      | 637             | 8.07      | 467             | 12.93     | 686             | 4.32      | 246             | 4.00      | 24        |
| 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         |
| 11        | West Bengal      | 79.11     | 1831            | 0         | 0               | 16.53     | 1194            | 3.66      | 166             | 15.99     | 64        |
| Total     | Total            | 106.05    | 2707            | 18.86     | 723             | 35.63     | 2064            | 12.47     | 673             | 22.81     | 100       |