Bank of Maharashtra Abroad Education Loan Explained

    Updated on: 16 Jan 2023


    Abroad education loans are the investment for a prosperous future, and everyone wishes to secure it. An abroad education loan helps you in realizing your dream of studying at top universities in the world. The abroad education loans taken from Public Sector Banks (PSBs) are the icing on the cake for borrowers. Bank of Maharashtra being one of the most preferred lenders is certainly among the top choice for borrowers. There are several aspects of abroad education loans offered by the Bank of Maharashtra making it a perfect choice. The cost of a loan, flexibility in lending, an adjustment in terms of repayment, and several other factors make it a great choice for students who don’t want to overburden themselves at the time of repayment

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    We will be discussing all the details of the abroad education loans that are available with the Bank of Maharashtra. Every year thousands of students take abroad education loans from the Bank of Maharashtra and go abroad for higher studies at top universities of the world. 

    Overview of Abroad Education Loan from Bank of Maharashtra

    Particulars

    Details of Loan

      Maximum Loan Amount  

    INR 20 Lakh
    May increase for meritorious students, if need be.

    Loan Tenure

    15 Years

    Rate of Interest

    Up to INR 7.5 lakhs: RLLR (Repo Linked Lending
    Rate) + 2.00= 8.80 Above INR 7.5 lakhs: RLLR + 1.65= 8.45 (ER)

    Processing Fee

    Nil

    Margin

    15%

    Moratorium

    Course Period + 1 year

    Courses

      Job oriented Prof./Technical / PG courses/ Post graduation: - MCA, MBA, MS, etc  

     

    Abroad education loans from the Bank of Maharashtra is pretty wide in scale and scope. It offers a range of loans for students, and also varies the loan amount to terms of repayment on a case-to-case basis

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    Maximum Loan Amount

    The maximum loan amount in most cases is around INR 20 lakh for abroad education. However, the loan amount might vary from case to case. There are several cases wherein the bank gives loans with a higher amount when the borrower can pledge collateral of higher value. Meritorious students also get loans with higher value if they secure admission at top universities. 

    Margin

    The margin for abroad education is 15%. Margin money is the percentage of the cost of education that a student has to fund on its own. For instance, if you want a loan for INR 1Lakh then you will have to fund INR 15000 on your own. 

    Repayment Period

    The loan repayment period for an abroad education loan is 15 years. However, it is always advised to repay the loan as soon as possible. The rate of interest is pretty high for abroad education loans so it’s better to take less time in repayment. 

    Collateral

    The parents or the guardians act as co-applicant for an abroad education loan. Bank of Maharashtra gives only secured loans for education abroad. Like most PSBs Bank of Maharashtra also gives the option of third-party collateral wherein a close relative can pledge the collateral if you don’t have high valued collateral. 

    Courses Covered under Abroad Education Loan

    Most courses that are job-oriented and have bright prospects post-completion are included in the loan scheme. Most technical / PG courses/ Post graduation: - MCA, MBA, MS, etc are included in the loan scheme. 

    Expenses Covered Under the Loan

    Bank of Maharashtra loans are a comprehensive package that covers almost all your expenses for abroad education. The loan coverage includes the following:

    • Tuition fee for the university. 
    • The cost of study materials. 
    • The cost of purchasing some electronic items like Laptop, Tablet, etc that is needed for the completion of the course. 
    • The payment of the hostel. 
    • The travel expenses for going from the place of residence to the place of education. 
    • The cost of insurance is optional and will be considered only on request by the borrower. 
    • The cost of uniform or miscellaneous expenses. 

     

    Check Your Education Loan Eligibility Apply Here

    Bank of Maharashtra Education Loan Rules & Eligibility Criteria (for Abroad Studies)

    The rules & eligibility criteria for Bank of Maharashtra abroad education includes the following:

    • Nationality - The student/ loan applicant should be an Indian citizen and have a valid Indian passport. 
    • Admission Criteria - The student must have secured admission to the university through an entrance test or on the basis of merit. 
    • Documents Required For Loan - One must have all the documents in place before applying for the abroad education loan. You must ensure that all the documents are authentic as any discrepancy in the document will lead to the rejection of the loan application. Also, you should start collecting the documents right after getting the letter of acceptance from the university. The loan process can take even around a month in some cases so it’s better to start early and be assured of the loan. One needs to have the following documents handy for Bank of Maharashtra’s abroad education loan:
      • Duly filled loan application form without any discrepancy in the information provided by the applicant. 
      • The letter of acceptance/ letter of admission or any other relevant document that proves your admission to the university. 
      • A complete statement of the cost of education abroad. 
      • Two passport-size photographs must be clear with no blurry or overly shining element in them. 
      • PAN card of both the applicant and the co-applicant. 
      • Aadhar card of both the applicant and co-applicant. 
      • Proof of residence (Electricity bill, municipal tax receipts, Driving license, Telephone bill, Passport, etc.)
      • Proof of identity(Driving license, Passport, Voter ID card, or any other photo identity). 
      • IT return/ IT assessment of the last two years of the Parent or Guardian who is the co-applicant in the loan. It is applicable only if they are an income taxpayer. 
      • Proof of income of the Parent or Guardian who is the co-applicant in the loan. Salary slips and Form 16 can be used as proof of income. 
      • Bank statement of the last six months of the borrower and the co-applicants (Parents or Guardian or any other co-borrower).
      • Statement of all the assets and liabilities of the Parents or Guardian or any other co-borrower. 
      • Marks sheet of the last qualifying exam based on which the student is seeking admission for higher education in the university abroad. 
      • Details regarding the scholarship and loans (if the student has any). 
    • EMI Payment Methods by Bank of Maharashtra  - Bank of Maharashtra gives a range of options for EMI payments of the abroad education loan. Borrowers can choose one option among the following for education loan repayment:
      • Standing Instruction - It is perhaps the best mode of EMI payment on your abroad education loan. However, it is only available for existing account holders in the Bank of Maharashtra. In this mode of payment, the monthly EMIs are automatically debited from your bank account without any hassle. 
      • Electronic Clearing Services - Just like the method of EMI payment in the Standing Instruction this method of payment also deducts the monthly EMIs from the bank account that you will give. The only difference is that it is available for those borrowers who don’t have an account in the Bank of Maharashtra. 
      • Post Dated Cheques - If a borrower is not comfortable with the electronic modes of payment then they can use this option for EMI payments. The borrower has to submit some post-dated cheques at the nearest Bank of Maharashtra education loan center. One has to keep submitting the post-dated cheques at regular intervals at non- ECS(Electronic Clearing Services) centres. 

    Out of all the options provided by the bank most borrowers choose either the first or the second option for EMI payments. The Post Dated Cheques mode is quite cumbersome and needs physical visits to banks at regular intervals. 

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    Interest Subsidy Schemes Available with Bank of Maharashtra Abroad Education Loan

    Students who are prompt in their EMI payments during the period of study abroad are eligible for interest subsidy. So, if you are paying your interest regularly then you may be eligible for a subsidy of 1% on the interest rate. However, the subsidized interest rate is only applicable for the moratorium period or the repayment holiday. The repayment time period is one-year post completion of the course, and it is applicable in all cases. 

    Read Also,

    Padho Pardesh Interest Subsidy Scheme

    • The interest subsidy is given to meritorious students from the minority community for pursuing higher courses in abroad education. 
    • The students have to submit their proof of eligibility to get an interest subsidy. 
    • After getting the confirmation bank will automatically update the details of students on the ‘Padho Pardesh’ portal. 
    • The portal is open for two months in every quarter, and students can apply for the scheme. 
    • A wide range of courses are available for students to choose from, and interest subsidies will be provided on loans for these courses. 

    Choosing Bank of Maharashtra Among Others

    Bank of Maharashtra loans is distinct from other banks in several aspects, and it is the reason why it is among the most preferred lenders for abroad education loans. The advantages of getting your abroad education loans from the Bank of Maharashtra include -

    • The rate of interest is very low when compared with other lenders, especially private sector banks and NBFCs.
    • The processing fees are also low which makes it an affordable loan for studying abroad.
    • The loan is sanctioned pretty fast as compared to other PSBs. 
    • The bank will not penalize the prepayment of the loan. 
    • The bank doesn’t even charge for pre-closure of the loans.

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