Maulana Azad Education Loan

Education plays an essential role in the growth and development of an individual and society. Therefore, to overcome the financial constraints faced by students, the government of India has launched various schemes and programmes to provide financial assistance to students. One such scheme is Maulana Azad Education Loan.

The Maulana Azad Education Loan scheme is a government-initiated scheme launched in 2003 that offers up to 7.5 lakhs. This scheme was started by the Ministry of Minority Affairs for students of minority communities, who wish to pursue higher studies in India. This loan is offered under ‘Maulana Azad Shaikshanik Karz Yozana’ at 3% interest rate.

Maulana Azad Education loan is offered to students who are going to pursue technical and professional courses in India. Here are the additional details of this scheme.

NOTE- Students are eligible to get loan amount of maximum 5 lakhs if he/she is the only person in the family taking Maulana Azad Education Loan but if two students of the same family are applying under the same scheme then the loan amount increases to 7.5 Lakhs for both students combined.

In order to qualify for the Maulana Azad Education Loan Scheme, the candidate must meet the following criteria requirement:
- The applicant must be a citizen of India and belong to a minority community i.e. Muslim, Sikh, Christian, Parsee, Buddhist, and Jain. 
- Only domiciles of Maharashtra can apply for this scheme
- The age of candidates should be between 16 to 32 years
- Applicants must have secured admission into a college/institute that is approved by Central Govt. /State Govt./AICTE/UGC/ISC for pursuing technical and professional courses like-  B.E, B.tech, B.pharma, MBA, MCA
- The family annual income limit of the applicant must be less than Rs 8,00,000/-

NOTE- There are a few courses that are not eligible under this scheme like- D.ed, B.ed, B.sc, M.sc

To get an education loan, the first step of applicants should be to collect a checklist of the required documents. The process of collecting documents checklist may seem daunting but it is required for a convenient and successful loan application process. Here is the list of a few specific documents one should arrange before applying for the Maulana Azad Education Loan.

Basic documents requirement for Student

Here is the list of a few mandatory documents for the applicants applying for Maulana Azad Education Loan:

• KYC documents (Aadhar Card, PAN Card, Passbook Xerox)
• 10th, 12th, diploma and graduation mark sheets/certificates
• Minority community certificate (provided by the governing authority)
• Domicile certificate ( proof of residency )- Voter ID Card, Ration Card, Driving license, Passport
• Six passport-size photos
• Verified admission letter from the college/university
• Complete fee structure of the whole course duration
• Bonafide certificate from recently completed school, college, or university (Compulsory)
• Copy of an online application form that one can download from the Maulana Azad Education Loan portal
• Copy of Freeship form ( to show in which category applicants have taken admission, and which scholarship they are getting). To download the form one can visit the official website
• NOC (Non-Objection Certificate) from a bank

NOTE- If the applicant is a girl, she must open a joint bank account with her father, mother, or guardian.

Basic documents requirement for Co-Applicant

It is crucial to have these necessary documents for the co-applicant/ parents for Maulana Azad Education Loan:

1. Basic KYC documents (Adhar Card, PAN Card, Ration Card)
2. Proof of profession and proof of income
   1. For business professionals-
      1.  Business transactions of more than 1 year
      2. Business number registered under co applicants name
      3. Last 3-year balance sheet or profit and loss account
      4. Address proof of business
   2. For salaried employees-
      1. Income certificate
      2. Salary slip of at least 3 months
      3. Employer's ID card
      4. 3 years Income Tax Return (ITR) or form 16 A
3. Proof of address (Voter ID Card, Passport, Drivers license, Electricity Bills, Ration Card)
4. A relationship certificate, can be any document proving the relationship with the applicant like- Birth certificate, or passport.

Basic documents requirement for Guarantor

Keeping a guarantor for the Maulana Azad Education loan is mandatory and an important aspect. There are lots of cases in which a loan gets rejected due to the ineligibility of a guarantor or not being able to provide necessary documents. So, here is the list of mandatory documents for guarantors. 

• Basic KYC documents (Aadhar Card, PAN Card)
• Proof of address (Driver's Licence, Ration Card, Passport)
• 3 years Income Tax return (ITR)
• Salary slip of more than 3 months and form 16 (for salaried professionals)

Eligibility to be a guarantor

• Any person either salaried ( government or private ) or Business/property holder
• The age of the guarantor should be less than 48 years
• That person must be filing an Income Tax Return (ITR) of more than 5 lakhs per annum
• In the case of collateral pledging, the guarantor should be available to sign the loan documents.

Once you submit the Loan application form and it gets approved, you will receive a sanction letter from Maulana Azad Minorities Financial Development Corporation Ltd. After getting a sanction letter you have to follow certain steps in order to get the disbursement of your loan amount. Here is the list of some compulsory steps that you should follow:

1. Three notarized documents- 
   
   1. Legal agreement with Maulana Azad Financial Development Corporation Ltd. notarized by applicant, co-applicant, and guarantor 
   2. Notarized promissory note
   3. 100 rupees stamp on guarantee letter by the guarantor
2. You have to sign 20 bank cheques and write them to Maulana Azad Minorities Financial Development Corporation Ltd.
3. Girl students have to provide a joint account with parents or guardians and have to submit bank cheques signed by both persons in that joint account.
4. Letter to Maulana Azad Minorities Financial Development Corporation Ltd (download from Maulana Azad Education Loan portal) putting all cheque details.
5. Self-declaration form ( this also you can download from their official website) stating that you will not close the savings bank account in which you are taking the disbursements.
6. Applicants have to make 2 separate files of all the supporting documents along with a sanction letter because one file gets verified at the district level and the other file at head office.

NOTE- If your guarantor is pledging property for your loan, they don’t need to pay for the stamp duty on that property.

The application process for the Maulana Azad Education Loan scheme for higher studies in India is completely online and hassle-free. One can apply online by visiting e- mamfdc portal. This portal provides a convenient application process to students belonging to a minority community i.e. Muslim, Sikh, Christian, Parsee, Buddhist, and Jain. Follow these simple steps to process your application:

Step 1: Go to the e-mamfdc portal and create an account by providing some basic details such as - name, date of birth, address, mobile no., email id, etc. 
Step 2: After that, you can re-login to the portal and start your Education loan application. Here you will have to provide detailed information related to your parents, course, guarantor, previous education, and some other details. 
Step 3: Once you have submitted all the details and uploaded all the documents, you can submit the application form and can track your application process by the user id provided to you. you will also receive notifications related to your application.
Step 4: You will have to visit the district office with the co-applicant and the guarantor after you receive the verification of your education loan from the Maulana Azad Minorities Financial Development Corporation Ltd. You, along with your guarantor and co-applicant, will have to sign the legal agreement in front of the district officer.
Step 5: If all the documents that you have submitted get verified then you will receive a sanction letter from the organisation otherwise you will receive a query letter mentioning the documents that are missing or not verified. So, update those documents and submit them again.

After your Education loan gets sanctioned, the first installment of your total loan amount will be directly credited to your bank account. However, it's not like your process is done and you will keep on receiving the next installments. There are a few documents you will have to submit to renew your loan amount for the next installment.

Documents required for Maulana Azad Education Loan Renewal

The renewal process of the Maulana Azad Education Loan is a lot easier than getting the sanction letter or the first disbursement. Here is the list of documents required for renewal :

1. Mark Sheet of the previous academic year of your college or university (Passing Certificate)
2. Bonafide certificate for the current academic year
3. Income certificate (not more than 8 lakhs)
4. Bank transaction copy showing the receipt of the last installment.
5. Report and application (both you can download from the Maulana Azad Education Loan Portal)

NOTE- It’s a myth among students that they will get the total loan amount in a single disbursement but it's not true, you will get your total sanctioned amount in installments till the end of your course duration. 

Repayment policies of Maulana Azad Education Loan

The repayment policies of Maulana Azad Education Loan are pretty convenient and student-friendly. Go through the below points to have a good understanding of the repayment policies:

• Repayment of the loan starts after 6 months of your course completion.
• Total repayment tenure is 5 years
• Repayment installments are once in 3 months unlike the usual EMIs

Eg.- If you have taken an education loan of 5 lakh rupees under this scheme, the total accumulated installment of 3 months including principal amount and interest amount would be 30,000 rupees For better understanding, you can use the WeMakeScholars EMI calculator.

The process of getting an Education Loan is always hectic because the process is slow, involves lengthy document checklists and the list goes on. But with WeMakeScholars, you can just skip to the good part by keeping your process completely online, smooth, and hassle-free.

WeMakeScholar is an organisation that is funded and supported by the Ministry of IT, govt. of India and our aim is to provide the best education loan options and support to the students, who are planning to complete their higher education from the best universities.

• End-to-end support from experts- when you process your application through us, our financial officers analyze your profile and suggest the best possible loan option available to you. We also provide you support until the repayment of the loan to deal with several issues such as a sudden increase in interest rate.
• Negotiation support- Our financial officers are well-trained and experienced in negotiating with lenders. They will negotiate with the lender on your behalf for different terms and conditions. So that you can get the best deal.
• Interest rate discount- We are partnered with 14+ private and public banks, so if you process your application with us, you can have up to a 2% discount on your education loan interest rate.
• Free of cost- As we are supported by the Ministry of IT under the Digital India campaign, we do not charge any fee for our services to applicants
• Faster Loan Process- In the case of public banks, we take only 21 days to complete your Education Loan process. Whereas, for private banks and NBFCs, it takes only 2-7 days to get your loan sanctioned.
• Tax benefits- There are various ways through which you can save lots of money while filing ITR (Income Tax Return). You can take full advantage of tax exemption under sec 80C and 80E. We at WeMakeScholars make sure to educate you on all these tax benefits.
• Cashback offers- Once you get your loan sanctioned through us and get your disbursement, you unlock the cashback offer of up to Rs. 3000.