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Last Modified : June 05, 2018
Bank of Maharashtra offers loan that can be availed by students to pursue graduation as well post-graduation courses both in India and abroad. The loan is extended with an affordable rate of interests and maximum benefits such as no prepayment charges and 0.50% concession to girl students.
There are various benefits of Education Loan for India and Abroad viz. financial assistance for pursuing education, tax benefits, easy loan disbursal, etc. The application process here is simple and can be done through both online and offline mode (bank branches)/which makes the process more user-friendly.
Bank of Maharashtra offers two types of education loans for students and also a Vocational educational loan. The first one is a Basic education loan and the second one is a Loan under Interest Subsidy scheme as direct by the Indian Government.
Eligibility to avail Bank of Maharashtra Education Loan Scheme
Key Details of Bank of Maharashtra Education Loan Scheme
Present Rate of Interest
Loan Amount | Applicable Rate of Interest |
Amount upto INR 4 Lacs | 12.75% |
Amount between INR 4 to 7.50 Lacs | 12.25% |
Amount above INR 7.50 Lacs | 11.50% |
Margin | Upto loan 4 Lacs – No margin Above 4 Lacs – for India: 5% for Abroad: 15% |
Maximum Loan Limit | For India – INR 10 Lacs For Abroad- INR 20 Lacs |
Security | Upto INR 4 Lacs: No security, parents/ guardian to be co-borrowers From INR 4 to 7. 50 Lacs: Third party guarantee required Above INR 7.50 Lacs: Collateral security equal to the amount of loan after providing a requisite margin |
Moratorium Period | Course Period + 1 year or 6 months after getting job |
Repayment (Maximum) | Upto INR 7.50 Lacs: 10 years Above INR 7.50 Lacs: 15 years |
Prepayment Charges | Nil |
Courses covered underBank of Maharashtra Education Loan Scheme
For India
For Abroad
Expenses covered underBank of Maharashtra Education Loan Scheme
Documents required for Bank of Maharashtra Education Loan Scheme
Interest Subsidy Scheme is an initiative of HRD Ministry, Government of India. The scheme is taken up by Bank of Maharashtra to allow students to avail education loans at the subsidy rates from the Bank of Maharashtra as approved by the Government. It is mainly for economically weaker students whose (total) family income does not cross more than INR 4.5 Lacs p.a.
Eligibility to avail Interest Subsidy on Education Loans
Key points of Interest Subsidy on Education Loans
Courses Covered under Interest Subsidy on Education Loans
Undergraduate and Post Graduate courses in:
Post Graduate Diploma approved by AICTE/ UGC
Answer: There are multiple schemes offered by Bank of Maharashtra apart from the basic education loan. These are:
Answer: The loan is granted in the name of the student
Answer: No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.
Answer: There is no age restriction for the applicant applying for education loan from Bank of Maharashtra. He/ she should only meet the other stated eligibility criteria’s.
Answer: Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.
Answer: Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.
Answer: Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.
Answer: You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.
Answer: Yes, you can apply online through Vidyalakshmi portal to avail for this loan.
Answer: Yes, by creating a login on Bank of Maharashtra web portal, you can view all details related to education loan online.
Answer: Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)
Answer:
Answer: Mostly Bank of Maharashtra asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Bank of Maharashtra. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.
Answer: Yes any scholarship or assistantship will be a part of margin charged on education loan.
Answer: Course Period plus one year, or six months after getting a job
Answer: Tenure of education loan provided by Bank of Maharashtra is maximum 15 years
Answer: MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.
Answer: Expenses covered by Bank of Maharashtra education loan are:
Answer: Yes, travel expenses are covered under this loan
Answer: This depends totally on bank’s discretion as whether a student meets other eligibility criteria or not.
Answer: Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)
Answer: Bank of Maharashtra provides additional 0.50% concession to students who secure admission to premier institutes such as IITs, IIMs, XLRI, or ISB.
Answer: The education loan offered by Bank of Maharashtra does not carry any prepayment charges or processing charges for studies in India or Abroad.
Answer: Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.
Answer: Pan Card is one of the mandatory document required by banks these days. It is mandatory because:
Answer: Yes diploma or certificate courses are eligible under Bank of Maharashtra Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping
Answer: Yes, it is mandatory to have a co-borrower to avail loan from Bank of Maharashtra.
Answer: Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.
Answer: Documents required from the co-borrower are:
Answer: You need at least 2 guarantors to avail loan from Bank of Maharashtra.
Answer: KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.
Answer: Repayment term:
Answer: You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.
Answer: EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below
Answer: The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee
Answer: It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student’s reason. You can contact your nearest branch for more details.
Answer: The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.
Answer: The interest rate is different for different category. Refer the table below:
Loan Amount | Applicable Rate of Interest |
Amount upto INR 4 Lacs | 12.75% |
Amount between INR 4 to 7.50 Lacs | 12.25% |
Amount above INR 7.50 Lacs | 11.50% |
Answer: Bank of Maharashtra offers
Answer: The documents that need to be submitted are:
Answer: No, the interest subsidy scheme is available only for studies applying for studies in India.
Answer: The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.
Answer: Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier). You can visit the official website of Bank of Maharashtra to calculate your tax benefit through their tax benefit calculator.
Answer: It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.
Answer: Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.
Answer: The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy
Answer: There are no additional benefits mentioned on the official website. You might contact your nearest branch for the same.
Answer: Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.
Answer: NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.
Answer: Visa is needed as a document proof but it is not a sole requirement.
Answer: A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.
Answer: student can reach out to the nearest branch in case of any query.
Customer Care Number:1800 233 4526/ 1800 102 2636
Customer Care Id: mahasecure@mahabank.co.in
