Bank of Maharashtra Education Loan

Bank of Maharashtra Education Loans

What Is an Education Loan?

An Education loan is the loan or funds acquired by an individual to pursue higher studies in India or abroad. The loan repayment commences for the student after completing the education and a period of 6 months is given as grace period to students to get or join a job.

The repayment amount will be determined by your choice of interest, you need to decide how you want to repay the loan. That is if you want to start paying during the time of moratorium period itself or after the moratorium period. The Moratorium period is the time of your education plus 6 months or 1 year given to get a job. It is only after this time that you are expected to pay the loan.

The loan interest starts to accrue at the time of dispersal of funds, so at the time of your graduation you have a huge amount to repay. The other option is your parents or guardian can start paying the loan during the moratorium period itself where it is calculated as a simple interest.

This way your loan amount at the time of graduation is drastically reduced.

There are 4 types of education loans in India

1. Under Graduate education loan - These are given to students who have completed their secondary education and looking to do higher studies in the form of under graduation. It can be done in India or abroad.

2. Post graduate education loan - These are education loans given to individuals who want to pursue post-graduation after completing under graduation course from a reputed university/college. Here also the loan can be for studying in India or abroad.

3. Parents availing education loan - This is the case where the parents take loan for the education purposes of their children. This is an unsecured loan and need not be for graduate or post-graduation courses but also for elementary and higher secondary courses.

4. Career growth education loans - These are loans provided to young people who want to pursue courses or trainings, certifications that will benefit their career growth.

About Bank of Maharashtra

Bank of Maharashtra Private Ltd was founded in 1993 as UTI Bank in Mumbai. It is the third largest private sector bank in India, providing a wide range of financial services to its customers, covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. The bank has 3300 branches and around 14,000 ATMs and nine international offices.

An Introduction to Bank of Maharashtra Education Loans

Education is one area where everybody is willing to spend a lot of money to live a prosperous life in the future. Being one of the major education loan providers, Bank of Maharashtra understands the needs of the students and offers extremely competitive education loans at better interest rates. Every year, a large number of students secure admissions in top universities and colleges in India and abroad with Bank of Maharashtra education loans.

Advantages of Bank of Maharashtra Education Loan

Following are some of the advantages of applying for an educational loan with Bank of Maharashtra.

• Low interest rate
• Less paperwork
• No processing fees
• Faster Disbursal
• No prepayment charges
• No pre-closure charges

Key Highlights of Bank of Maharashtra Education Loan

Features of Bank of Maharashtra Education Loan for Studies in India and Abroad

Objective: To provide term loan to Indian students for pursuing higher education in India and foreign universities

Quantum of Loan: Up to 10 Lakhs for studies in India and up to 20 Lakhs for studies overseas

Margin: No margin required for loans up to INR 4 Lakhs, 5% of margin for loans above INR 4 Lakhs for studies in India and 15% of margin for above 4 Lakhs for studies overseas

Repayment Period: The tenure is up to 10 years after completing the course for loans up to 7.5 Lakhs and 15 years for above 7.5 Lakhs. The moratorium period is 12 months after completing the course and 6 months after getting a job.

Security: The parents or the guardian will be the co-applicant or the loan and the primary debtor. Tangible collateral will be accepted as security by the bank with the third-party guarantee. No security required for loans up to 4 Lakhs.

Processing Fees: There are no processing fees for availing Bank of Maharashtra education loan.

Courses Covered

Studies in India:  Graduation courses/Colleges under Universities approved by UGC. Other courses leading to diploma / degree etc. conducted by colleges / universities approved by UGC / Govt. / AICTE / AIBMS / ICMR etc.

Studies Abroad: Job oriented Professional/Technical / PG courses/ Post Graduation: - MCA, MBA, MS etc

Expenses Covered

Expenses covered under Bank of Maharashtra education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools, and passage expenses, (for study abroad).

Eligibility Criteria: Who Can Apply?

• Must be an Indian Resident
• Applicant should have secured admission with the educational institution

Interest Rate of Bank of Maharashtra Education Loan for Studies in India and abroad:

Features of Bank of Maharashtra Skill Loan Scheme

Objective: To provide term loan to Indian students who wish to take up skill development courses

Quantum of Loan: Minimum of INR 5000 and Maximum of INR 1,50,000.

Margin: Nominal fee

Repayment Period: For loans up to INR 50,000 – 3 years, for loans between INR 50,000 and 1 Lakh – 5 years and for loans between 1 Lakh and 1.5 Lakhs – 7 years. The moratorium period is up to 6 months for 1-year courses and 12 months above 1-year courses.

Security: No security required, however, third-party guarantee will be taken.

Processing Fees: Nil

Courses Covered

Course run by Industrial Training Institutes (ITIs), Polytechnics or in a school recognized by central or State Education Boards or in a college affiliated to recognized university, training partners affiliated to National Skill Development Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a certificate / diploma / degree issued by such organization as per National Skill Qualification Framework (NSQF) is eligible for a Skilling Loan.

Expenses Covered

Expenses covered under Bank of Maharashtra education loan are payment of course fees, purchase of books, equipments, instruments, uniform, payment of hostel fees, examination fees, study tools etc.

Eligibility Criteria: Who Can Apply?

• Must be an Indian Resident
• Applicant should have secured admission with the educational institution

Interest Rate of Bank of Maharashtra Education Loan for Studies in India and abroad:

Documents Required

• Letter of admission
• Filled in Loan Application Form
• 2 passport size photographs
• Statement of cost of study
• PAN Card of the student and Parent/ Guardian
• AADHAR Card of the student and Parent/ Guardian
• Proof of identity (Driving Licence/Passport/Aadhar/ any photo identity)
• Proof of residence (Driving Licence/Passport/Electricity bill/Telephone bill)
• Student/Co-borrower/ guarantor's bank account statement for last 6 months
• IT return/ IT assessment order, of previous 2 years of Parent/ Guardian/ other co-borrower (if IT Payee)
• Brief statement of assets & liabilities of Parent/ Guardian/ other co-borrower
• Proof of income (i.e. salary slips/ Form 16) Parent/ Guardian/ other co-borrower

EMI Payment Methods

Bank of Maharashtra education loan can be repaid in following three ways.

Standing Instruction (SI): If you are an existing account holder with Bank of Maharashtra, Standing Instruction is the best mode of repayment. Your EMI amount will be debited automatically at the end of the monthly cycle from the Bank of Maharashtra account you specify.

Electronic Clearing Service (ECS): This mode can be used if you have a non-Bank of Maharashtra account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a non-Bank of Maharashtra account at your nearest Bank of Maharashtra Loan Centre. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

It is recommended that you opt for either the SI or ECS mode of payment for faster and less prone to error than the use of PDCs.

How to Apply for Bank of Maharashtra Education Loan?

You can either apply online or visit a nearby Bank of Maharashtra branch for the application. You can also download the education loan application form from the Bank of Maharashtra official website, complete the form and submit it the bank representative.

You can also check your eligibility for an education loan through CreditMantri and apply for it.

Bank of Maharashtra Education loan FAQ