Bank of Maharashtra Education Loan

Bank of Maharashtra is a public sector bank that offers education loans to students who wish to pursue higher education in India or abroad. The bank has a variety of schemes to fulfill the education loan requirements of students, under the following student loan products: Model Education Loan Scheme, Maha Scholar Education Loan Scheme, Maha Bank Skill Loan Scheme, and Interest Subsidy Scheme. 

In this article, we will provide a comprehensive guide to Bank of Maharashtra education loans, covering eligibility, interest rates, documents needed, schemes for abroad studies, schemes for study in India, interest subsidy scheme, repayment process, EMI calculation, and how to apply for an education loan from Bank of Maharashtra.

Bank of Maharashtra offers education loans to ambitious students who lack proper funds but have the potential to study hard and build a successful career. It has a variety of schemes to fulfill the education loan requirements of students, under the following student loan products: 

1. Model Education Loan Scheme
2. Maha Scholar Education Loan Scheme
   1. Part-time graduate/PG degree/diploma courses for working professionals- Category A 
   2. Part-time post-graduate degree/PG diploma courses for MBBS doctors 
3. Maha Bank Skill Loan Scheme 

Let’s understand all schemes under these products in detail

The education loan scheme for abroad studies, offered by the Bank of Maharashtra is quite unique due to its special features. Let’s find out what are those features

Model Education Loan Scheme

Note:
Education loan of an amount up to Rs 7.5 lacs is covered under the CGFSEL interest subsidy scheme. 

If your preferred course is not mentioned in the courses covered under this scheme, or if you are ineligible to get an education loan for your higher education abroad under this scheme. Still, no need to worry, we’ve got you covered. 

Request a callback or fill out the common application form to approach your financial officer at WeMakeScholars, they will analyze your loan profile and connect you to the best lender that will fulfill all your education loan requirements.

The education loan schemes of Bank of Maharashtra are specially designed to provide financial assistance to students taking admission in top educational institutions in India and acquiring quality education. 

Let’s understand the other aspects of each scheme individually, in detail;

Maha Scholar Education Loan Scheme

Purpose: Provide financial support to Indian students pursuing full-time degree/diploma courses in top-tier institutions, fostering enduring partnerships for sustained retail loan growth.

Eligibility: Indian nationals admitted to A, B, or C category institutions qualify.

Loan Amounts: Ranges from Rs.7.5 lakhs to Rs.80 lakhs, contingent on institution category and collateral availability.

Covered Courses: Includes full-time degrees, executive management courses like PGPX/EPGP, and part-time graduate/post-graduate courses for working professionals in category A institutions.

Expenses Covered: Tuition, exam/library/lab fees, study materials, laptops, deposits, insurance premiums, and more.

Margin: No margin for category A, 5% for B and C institutions.

Insurance Coverage: Group/life insurance covers outstanding amounts in unforeseen circumstances.

Repayment: Moratorium period plus one year, with a maximum repayment of 180 months (excluding the moratorium).

Processing Fee: No charges

Interest Rate Concession: 0.10% concession for female students and part-time courses for working professionals from category A institutions.

Part-time graduate/PG degree/diploma courses for working professionals- Category A 

Experience: Minimum 12 months of work experience required.

Occupation: Open to salaried and self-employed professionals (e.g., doctors, architects, advocates, chartered accountants).

Age Limit: Applicants should be below 50 years old and remain employed during their studies.

Courses Covered: Part-time graduate/post-graduate programs at Category A institutions in Management.

Loan Amount: Maximum loan amount: Rs.30.00 Lakh.

Course Duration: Minimum 1-year course duration required.

Income Deduction: 65% deduction from Gross Monthly Income.

Moratorium: Extends throughout the course duration plus 3 months.

Repayment Period: Salaried individuals: 15 years or until retirement, including the moratorium. Self-employed: 15 years, including the moratorium.

Interest payment: Compulsory interest payment during the moratorium.

Security: No need for collateral. Income assignment considered per Maha Scholar Loan Scheme guidelines for Category A full-time courses.

Part-time post-graduate degree/PG diploma courses for MBBS doctors 

Eligibility: Completion of an MBBS from an MCI-approved Indian medical college.

Age Limit: Maximum age allowed is 45 years.

Covered Courses: Post-graduate degrees and PG diploma courses from MCI-approved medical institutions.

Loan Amount: Up to Rs.80.00 Lakh with 100% collateral; Rs.40.00 Lakh without collateral.

Course Duration: Minimum course duration: 1 year.

Moratorium: Course duration plus 6 months.

Repayment Period: 15 years (excluding the moratorium).

Maha Bank Skill Loan Scheme

Aim: This initiative offers financial support for skill development courses meeting the Skilling Loan Eligibility Criteria.

Eligible Courses & Institutions: Recognized institutions like ITIs, Polytechnics, NSDC/Sector Skill Council-affiliated partners, State Skill Missions/Corporations, schools, and colleges affiliated with recognized universities offering NSQF-aligned certificates/diplomas/degrees.

Minimum Qualification: As per NSQF and institution requirements.

Loan Amount: Rs.5,000 to Rs.1,50,000.

Margin & Processing Charges: None.

Security: No collateral needed.

Guarantee: Covered under CGFSSL. Parents/guardians as joint borrowers; spouse can be co-applicant where applicable.

Repayment Period:

• Up to Rs.50,000: Within 3 years.
• Above Rs.50,000 up to Rs.1 lakh: Within 5 years.
• Above Rs.1 lakh: Within 7 years.

Note : A special discount of 0.1% in the rate of interest is offered to girl students.

Making your document available to your lender bank is the only foolproof way of starting the education loan process. In our recently published article, we have compiled the complete list of documents that are required for an education loan. You can go through it for your better understanding. While, here is the list of some basic documents for bank of maharashtra education loan:

1. Completed Application Form
2. Admission Confirmation: Proof of admission to the Institute.
3. Identification Copies: Passport, Voter ID, Driving Licence, or PAN Card copies.
4. Passport Photos: Two recent passport-size photographs of the applicant, co-applicant, and guarantor.
5. Educational Records: Latest qualified exam mark sheet result of the entrance exam through which admission is being taken (e.g. CAT, GRE, TOEFL, IELTS, etc.)
6. Income Proof: Parents' or guardians' income proof with the last 2 years' income tax statements.
7. Financial Statements: Six months' bank statement or recent salary slip.
8. Course Expenses Plan: Detailed breakdown of course expenses.
9. Current Financial Obligations: Details of existing loans and any scholarships received.
10. Institute Prospectus: Copy of the institute's prospectus for cost estimation.

Offline application process

• Visit the nearest bank of Maharashtra branch and ask the loan officer about the education loan products offered by the bank.
• Check your eligibility for education loan and fill the application form accordingly
• Collect all the documents required and submit them in the bank on your next visit to start your loan application process

Online application process
Go to the Bank of Maharashtra's official website or you can apply directly on WeMakeScholars official portal.

Initiate Application: Click on the "Apply Now" section designated for education loans.

Complete Form Details: Provide your information by filling out the application form with the necessary details.

Document Submission: Upload the essential documents as listed for the loan application.

Form Submission: After filling in all required fields, submit the form electronically. Additionally, it's advisable to print a copy of the application for your records.

Visit the Nearest Bank Branch: Proceed to your nearest Bank of Maharashtra branch to complete any further formalities or requirements regarding your loan application.

Pros
Here is the list of few pros that you can get when you process your education loan through bank of maharashtra:

• Cheaper rate of interest
• Easier repayment policies
• Wide coverage of education loan schemes
• Interest rate concession

Cons
The education loan process is not as simple as it looks, if you directly go to the banks and apply for an education loan. Here are the issues that you are sure to face if you approach directly to the banks:

• Maximum loan amount is INR 20 Lakhs, often requiring a 15% margin
• only includes specific courses, excluding vocational or pilot training programs.
• Issues in legal and valuation reports
• Delay in the process due to multiple bank visits
• Unavailability of correct information
• No particular list of required documents

Quick Processing: We process your loan - within 21 days from government banks and 7 days from private banks/NBFCs after you submit your documents.

Expert Guidance: Our team of financial officers helps you pick the best lenders and loan options based on your eligibility and bank offers.

Lower Interest Rates: Through us, get rates 0.5% to 2% lower than usual bank rates.

Negotiation Support: We negotiate better terms and rates on your behalf.

Simple Online Application: Apply from home easily. Our portal minimizes bank visits.

Continuous Assistance: We support you through all loan stages, from sanctioning to repayment.

Tax Saving Assistance: Learn about ways to save on taxes with government-approved schemes like Section 80E, 80C, etc.

Cashback Offer: Enjoy up to Rs 3,000 cashback upon loan approval.

Free Services: Our all services are free for all applicants, because we are supported and funded by the IT Ministry's Govt. of India under Digital India Campaign.

Bank of Maharashtra has its own EMI calculator available on its website, but we suggest you to use the WeMakeScholars Education loan EMI calculator, as it provides more detailed analysis about your repayment statistics, including:

• EMI amount
• Interest component in the EMI
• Principal amount repaid towards loan
• Outstanding loan amount

Here is an example of how to calculate the EMI for a Bank of Maharashtra education loan:

Let’s assume that you have taken a loan of Rs. 10 lakhs for a course period of 24 months. The interest rate is 8.5% per annum and the moratorium period is 12 months. You will not be paying during the study + moratorium period. Here is how you can calculate the EMI:

Calculate the total amount payable after the moratorium period:

Total amount payable = Loan amount + (Loan amount * Interest rate * Moratorium period / 12)
Total amount payable = 10,00,000 + (10,00,000 * 8.5 * 12 / 100)
Total amount payable = Rs. 11,02,000

Calculate the EMI using the following formula:
EMI = [P x R x (1+R)N]/[(1+R)N-1]
Where,
P = Principal amount (loan amount)
R = Rate of interest (monthly)
N = Tenure (in months)
Monthly interest rate = Annual interest rate / 12
Monthly interest rate = 8.5 / 12 = 0.708%
Tenure = Course period + Moratorium period
Tenure = 24 + 12 = 36 months
EMI = [10,00,000 x 0.708% x (1+0.708%)36]/[(1+0.708%)36-1]
EMI = Rs. 32,042

So, the EMI for your Bank of Maharashtra education loan would be Rs. 32,042.

The education loan repayment period in Bank of Maharashtra is 15 years, which starts immediately after the moratorium period ends. Students are provided an education loan sanction letter in which the current effective rate of interest is mentioned along with, repayment conditions, EMI amounts, outstanding loan amount along with other important parameters of the education loan repayment process.

Though, students can pay monthly installments as EMI for the entire repayment period to repay their education loan, but they can end their education loan before the repayment period as well, by applying the following methods:

• Opting for shorter repayment periods
• Pre-payment or Part repayment
• Considering transferring your education loan

The Government of India has introduced several interest subsidy schemes for students who wish to pursue higher education in India or abroad. These schemes provide financial assistance or interest subsidies to qualifying students. Some of the popular schemes include:

1. Central Govt. Interest Subsidy Scheme (CSIS)
2. Padho Pardesh Scheme
3. Dr. Ambedkar Scheme for OBC and EBC

(To know more about these subsidy scheme click here)

Central Govt. Interest Subsidy Scheme (CSIS)

• Offers interest discounts on education loans up to 7.5 lakhs.
• Eligibility:
  
  • Indian citizenship required.
  • Applicable to Indian educational programs.
  • Income limit: Rs 4.5 lakhs annually.

Padho Pardesh Scheme

• For economically disadvantaged minority students, offering interest subsidies on international education loans up to 7.5 lakhs.
• Eligibility:
  • Indian citizenship required.
  • Applicable to Indian study programs.
  • Income limit: Rs 6 lakhs annually. 

Note: The Padho Pardesh Scheme has been inactive since April 1, 2022. Existing beneficiaries continue to receive benefits.

Dr. Ambedkar Scheme for OBC and EBC

• Provides interest-free education loans during moratorium for OBC and EBC students.
• Eligibility:
  
  • Required caste certificate.
  • OBC/EBC families with income below 8 lakhs annually.
  • Proof of income may be requested.
  • Admission in approved foreign Masters, M.Phil, or Ph.D. programs.