Srinagar, July 30: The Government of India said that minority students from Jammu and Kashmir received over Rs 28 crore in subsidised education loans and interest subsidies over the last five years through central government schemes.
Responding to a question in the LokSabha on July 30, Union Minister for Minority Affairs KirenRijiju said that two major schemes have benefited students from J&K: the now-discontinued PadhoPardesh interest subsidy scheme and the ongoing National Minorities Development and Finance Corporation (NMDFC) education loan scheme.
Under the PadhoPardesh scheme, which was specifically meant to support overseas education for minority students, 609 students from J&K were provided interest subsidies between 2020 and September 2024. The total subsidy amount released to J&K students under this scheme stands at Rs2.50 crore. The scheme was discontinued in 2022–23 due to overlaps with other financial aid schemes and easier access to education loans at lower interest rates through public sector banks.
Meanwhile, the NMDFC education loan scheme, which continues to operate, provided financial support to 514 students from J&K during the same period. A total of Rs 26 crore was disbursed to these students through concessional loans for pursuing higher studies in India and abroad. In 2021–22 alone, 158 students from J&K received loans worth Rs 9.33 crore, the highest disbursal year in the state.
The NMDFC loans are provided at low interest rates, 3% per annum under Credit Line-1 (for families with annual income up to ₹3 lakh), and 5–8% under Credit Line-2 (for incomes up to ₹8 lakh). The scheme is implemented through State Channelizing Agencies (SCAs) nominated by the UT administration.
The Ministry said that it has not faced major challenges with loan repayment so far and is not currently considering changes to the subsidy amount or repayment terms. However, it reiterated its commitment to ensure that economically weaker students from minority communities continue to access higher education through affordable financing options.
