Education Loan

Bank of Maharashtra Abroad Education Loan Explained

Bank of Maharashtra Abroad Education Loan Explained

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Get a comprehensive guide on Bank of Maharashtra education loan covering the eligibility, interest rate, documents needed, etc. Weigh the pros and cons for a better choice by the end.

GyanDhan
Aman
Updated on:  27 Feb 2024  | Reviewed By: 
Ankit Mehra 
| 4.2K | 7  min read

With the rising number of Indian students studying abroad, education loans from public sector banks have become an essential resource for many. Among them, Bank of Maharashtra stands out for its exclusive loan products designed to empower deserving students. With 29 million customers availing its customer-friendly banking services through its 2022 branches spread across the country, it offers education loans of up to Rs 80 lakhs to study in India and up to Rs 20 lakhs to study abroad. In this blog, we will discuss in detail the eligibility criteria, interest rates, documents needed, and more while taking Bank of Maharashtra abroad education loan.

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Overview of Bank of Maharashtra Abroad Education Loans

For studying abroad, the Bank of Maharashtra education loan funds up to INR 20 Lakhs. However, the maximum amount can be increased if the student’s application has more weightage factors, such as admission to a top institute, high collateral value, better CIBIL score of the co-borrower, etc. 

Check Your Education Loan Eligibility

Here are features of the Bank of Maharashtra education loan to study abroad:

Interest rate

Up to INR 7.5 Lakhs - 11.30%

More than INR 7.5 Lakhs - 10.95%

Eligible courses

Job-oriented professional, technical, or post-graduate level courses and post-graduate degrees like MBA, MS, MCA, etc. 

Processing fee

0.50% (refundable)

Margin money

Nil for up to INR 4 Lakhs and 15% of the loan amount above INR 4 Lakhs

Moratorium period

Course years + 1 year

Repayment during the moratorium period

Simple Interest (SI)

Loan tenure

Up to 15 years

Co-borrower requirement

The student’s parent

Security requirement

  • list items No collateral is required for up to INR 7.5 Lakhs
  • list items Collateral security of value equals 100% loan amount required for amounts more than INR 7.5 Lakhs excluding the margin money
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Bank of Maharashtra Abroad Education Loan Schemes

Bank of Maharashtra’s education loan schemes help students study at top institutions in India and abroad. Among them, the Model Education Loan Scheme offers. 

The Model Education Loan Scheme was introduced by Indian Bankers Association in 2001 to define the maximum loan amount for education loans. 

There are other education loan schemes by the Bank of Maharashtra, such as the Maha Scholar Education Loan Scheme and Maha Bank Skill Loan Scheme, available for students to study in Indian institutions. 

 

 

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Bank of Maharashtra Education Loan Interest Rate

As the table shows, the current interest rate for Bank of Maharashtra education loans is 10.95% - 11.30%. Note that this interest rate is applicable to Bank of Maharashtra loan schemes for abroad studies and not for higher education in India. 

  • list items Bank of Maharashtra education loan interest rate is floating, meaning market changes affect the interest rate.
  • list items Effective interest rate for education loans is the sum of RLLR (Repo Linked Lending Rate) and 1.65% - 2%. The current RLLR is 9.30% for all Bank of Maharashtra loans. Remember that the RLLR is subject to change, so the effective interest rates on education loans.
  • list items Interest concessions: 0.50% concession is available for girl students and 0.25% for deserving students. Also, up to 1% concession is given to students who regularly pay Simple Interest in the moratorium period. 

Apart from the general interest concessions, education loans from the Bank of Maharashtra offer.

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Interest Subsidy Schemes for Bank of Maharashtra Education Loans

  • list items Dr. Ambedkar interest subsidy scheme: Dr. Ambedkar Central Sector Scheme of Interest Subsidy on Educational Loans for Overseas Studies for Other Backward Classes (OBCs) and Economically Backward Classes (EBCs) will exclude the beneficiaries from paying the interest applicable for the moratorium period. For OBC students, the total income shall not exceed INR 8 Lakhs per annum, and for EBC students, the maximum annual income must be INR 2.5 Lakhs. 
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Eligibility Criteria for Bank of Maharashtra Education Loans 

The eligibility criteria for Bank of Maharashtra education loans for abroad studies are listed below:

  • list items The student should be an Indian national
  • list items The student must secure admission by entrance test or through a merit-based selection process
  • list items The student must have a minimum of 50% marks in the last qualifying exam
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Documents Required for Bank of Maharashtra Abroad Education Loans

The documents required for Bank of Maharashtra education loans include identity documents of the student and co-borrower and the student’s academic documents as listed below: 

  • list items Identity and address proofs
  • list items PAN card
  • list items Income proof for salaried co-borrower:  Last 2 years ITR Form-16 Last 3 months salary slips Last 6 months bank statement
  • list items Last 2 years ITR
  • list items Form-16
  • list items Last 3 months salary slips
  • list items Last 6 months bank statement
  • list items Income proof for non-salaried co-borrower:  Last 2 years ITR Audited Balance sheet Last 1 year bank statement
  • list items Last 2 years ITR
  • list items Audited Balance sheet
  • list items Last 1 year bank statement
  • list items For agriculturists with no ITR, an income certificate from Tahsildar or other relevant authorities is required
  • list items Proof of admission
  • list items Academic certificates
  • list items Proof of securing admission upon merit, such as an entrance exam results
  • list items Proof to show that the university of study is recognized by a reliable body
  • list items Prospectus of the institution
  • list items Fee structure of the course
  • list items Receipt of the fee already paid

 

See here a complete list of documents required for education loans.

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How to Apply for Education Loan in Bank of Maharashtra? 

Since the Bank of Maharashtra has branches nationwide and gives alternate options for applying, getting a Bank of Maharashtra education loan is hassle-free if you meet the eligibility requirements. Bank of Maharashtra education loan application is online and offline. To apply online, follow the steps below: 

  • list items Visit the official website of the Bank of Maharashtra
  • list items Click the tab ‘Apply now’
  • list items Fill in your details and register. 

Once you do this, the bank will get in touch with you. Alternatively, you can apply for an education loan from the Bank of Maharashtra through the Vidya Lakshmi portal.

To apply offline, visit the nearest Bank of Maharashtra branch with the required documents. It is advised that you register on the website before visiting the bank to apply. 

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Pros and Cons of Bank of Maharashtra Abroad Education Loans

Before applying, take a close look at Bank of Maharashtra education loans closely to make a better decision. Here are the pros and cons of education loans from the Bank of Maharashtra.

Pros:

  • list items The interest rate for education loans from the Bank of Maharashtra is lower compared to many private banks and NBFCs. 
  • list items There are concessions for girl students, meritorious students, and to students who regularly pay interest during the moratorium period.
  • list items The processing fee is refunded one the student gets the first disbursement. 
  • list items Eligible students can get interest subsidies in their loan repayment.
  • list items Students can get tax benefits under section 80 E in their education loan interest repayment. 

Cons:

  • list items The maximum amount available is INR 20 Lakhs with 15% margin money in typical cases.
  • list items List of eligible courses is limited to a few, excluding vocational courses, pilot training courses, etc. 

Before you initiate the application, go through the details of Bank of Maharashtra education loan to make an informed decision. Apply only if the Bank of Maharastra education loan matches your concerns. Check your education loan eligibility for education loans by Bank of Maharashtra and other lenders. 

Read also

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Frequently Asked Questions

What is the maximum loan limit of Bank of Maharashtra education loan?

The maximum loan amount to study in India is INR 10 Lakhs and to study abroad is INR 20 Lakhs for Bank of Maharashtra education loans. The maximum loan amount can be higher on a case to case basis. 

How to get interest subsidy for education loan from the Bank of Maharashtra?

If a student is eligible for interest subsidy benefits, the proof of eligibility must be submitted to the Bank of Maharashtra to get the subsidy benefits. 

Is the Bank of Maharashtra a good option for education loans?

Deciding a bank good or bad depends on the customer’s perception of the loan terms. The Bank of Maharashtra is a public sector bank offering education loans at an affordable interest rate and with subsidies and tax benefits. Generally, education loans from public sector banks are considered good and better than loans from private sector banks or NBFCs. 

What is the interest rate for the Bank of Maharashtra education loan?

The interest rate for Bank of Maharashtra education loans varies between 10.95% - 11.30%, depending on various factors such as the quantum of the loan, collateral value, academic and financial details of the applicant and co-applicant, etc. 

What are the chances of getting an education loan from the Bank of Maharashtra?

The chances of getting an education loan from the Bank of Maharashtra are high for those applicants with proper documents and vice versa. 

Check Your Education Loan Eligibility


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