Bank of Maharashtra is one of the major public sector banks in the country. Home loans, education loans, deposit schemes, credit cards and debit cards are some of the financial products offered by the bank. A Bank of Maharashtra Education Loan can help students to pursue higher education in India or abroad. Bank of Maharashtra has a hassle-free loan application process, thereby making it a very popular credit product among aspiring students.
Features and Benefits of Bank of Maharashtra Education Loan:
Objective of the loan:
The objective or purpose of a Bank of Maharashtra Education Loan is to assist students with acquiring finances required to pursue various graduation and post-graduation level courses in India and abroad.
Expenses Considered for Bank of Maharashtra Education Loan:
The expenses covered by the loan include hostel expenses, tuition fees, money spent on purchasing books, instruments and equipment, travel expenses (when they study abroad) and other necessary expenses.
Amount of Education Loan:
The maximum loan amount offered is Rs 10 lakhs for education in India and Rs 20 lakhs for education in foreign countries.
The interest rates for Bank of Maharashtra Education Loans are as follows:
- 12.75% for loan amounts of Rs 4 lakhs or below
- 12.25% for loan amounts between Rs 4 and Rs 7.50 lakhs
- 11.50% for loan amounts above Rs 7.50 lakhs
During the moratorium period only simple interest is charged on the loan amount and after that compound interest is charged on a monthly basis.
Bank of Maharashtra does not charge any processing fees for education loans.
Repayment Period (EMIs)
6 months after getting employed or the duration of the course plus 1 year (whichever is earlier).
No security is required for education loans up to Rs 4 lakhs.
There is no margin for loans up to Rs 4 lakhs. For loans above Rs 4 lakhs, the margin for pursuing courses in India is 5% and for pursuing courses abroad it is 15%.
- No guarantor is required for loans up to Rs 4 lakhs.
- For loans between Rs 4 lakhs and 7.50 lakhs satisfactory 3rd party guarantee is required.
- For loans above Rs 7.50 lakhs, 2 guarantors and satisfactory collateral security is required.
The eligible courses for Bank of Maharashtra Education Loan are as follows:
Courses in India
Graduation courses, degrees or diplomas in colleges / universities / institutes approved by UGC / ICMR / AIBMS / AICTE etc.
Courses in foreign countries
Job oriented Professional / Technical / Post Graduation Courses such as MS, MBA, MCA etc.
Bank of Maharashtra Education Loan Eligibility and Documentation:
The eligibility criteria for Bank of Maharashtra Education Loans are as follows:
- The applicant should be an Indian National
- The applicant should have been selected for a professional / technical course, in graduation programme, degree or diploma in a college, university or institute approved by UGC / ICMR / AIBMS / AICTE etc.
- The applicant should have secured admission to a job oriented course such as MS, MBA, MCA etc. in a recognized foreign university.
The documents required for applying for Bank of Maharashtra Education Loans are as follows:
- Identity proof
- Admission letter of college, institute or university (in India or abroad)
- Brochure stating the course fee charged by the institute
Economically weaker students can take advantage of the Interest Subsidy scheme approved by the Government of India.
The features of this subsidy scheme are as follows:
- This scheme only applies to Technical or Professional courses in India that are offered by colleges/ universities or institutes recognized by UGC / ICMR / AIBMS / AICTE etc.
- Students who are expelled from any institution or if they discontinue the course due to reasons other than medical grounds are not eligible for this scheme.
- The subsidy is applicable only during the moratorium period of the loan.
- Only students with overall family income of less than Rs 4.5 lakhs per annum are eligible for this scheme.
- Students will be required to provide income proof from authorized by State or Central Government officials.
- Students can avail this interest subsidy only if they have not claimed subsidy under any other State or Central Government scheme.
Bank of Maharashtra Education Loan FAQs:
- Is there any insurance coverage provided with Bank of Maharashtra Education Loans? No, there is no insurance coverage provided with education loans from Bank of Maharashtra.
- Are the loans credited to the bank accounts of students? No, the loans are disbursed directly to the college or institute as per the course requirements.
- Are the loans granted to the students or their parents? The loans are granted directly to the students, with the parents acting as co-borrowers.
- How can I apply for a Bank of Maharashtra Education Loan? You can apply for a Bank of Maharashtra Education Loan on the online portal of the bank, or at any of the 75 selected Bank of Maharashtra branches.
- Are students pursuing PHD courses eligible for this loan? Yes, students who are pursuing PHD courses in university or institute recognized by UGC, ICMR and AIBMS, AICTE or other government bodies are eligible for this loan.
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