Bank of Maharashtra Education Loan for Studying Abroad - Eligibility, Interest Rate, Amount, Security

Bank of Maharashtra Education Loan for Abroad Studies – Bank of Maharashtra (BOM) is one of India's large public sector banks that have the highest network of branches in the state offering an education loan to Indian as well as study abroad students. Under the model education loan scheme the Bank of Maharashtra provides the student loan for studying abroad. A study abroad education loan makes it possible to reduce the hefty amount of money for tuition fees and living costs like accommodation, food, traveling, etc. It is best to choose Bank of Maharashtra for taking education loans for abroad studies. To look into further details such as eligibility, interest rates, and loan process, the following article deals with information related to Bank of Maharashtra foreign education loan.

This Story also Contains

1. Model Education Loan Scheme for Studying Abroad- Key Points
2. Benefits of BOM Education Loan for Abroad Studies
3. Eligibility for Bank of Maharashtra Education Loan Abroad
4. Documents Required for Bank of Maharashtra Education Loan for Studying Abroad
5. How to Apply for the Bank of Maharashtra Education Loan for Abroad Studies?
6. Loan Amount and Coverage
7. Bank of Maharashtra Education Loan Interest Rate
8. What is margin amount for Bank of Maharashtra education loan?
9. Security and collateral for Bank of Maharashtra Education Loan
10. Repayment of Loan Amount
11. About Co-borrower
12. Disbursement Process

Model Education Loan Scheme for Studying Abroad- Key Points

Benefits of BOM Education Loan for Abroad Studies

These are some of the advantages of taking Bank of Maharashtra education loans for studying abroad.

• No Margin Money: No upfront margin money is required, making the process accessible for students without adding an immediate financial burden.
• No Collateral Security (for Premier Institutions): Students who get admission in premier universities abroad may benefit by not requiring collateral security, easing the loan application process.
• Broader loan Coverage: This loan covers all the essential aspects in the study abroad journey, such as tuition fees, accommodation, etc.
• ROI Concession to Girl Students: Female students receive a concession in the Rate of Interest (ROI), giving them better opportunities to grow.
• Instant In-Principle Sanction: The process has an instant in-principle sanction, because of which their loan gets approved even before they officially graduate from the selected university.
• Longer Repayment Period: The loan offers a repayment period of up to 15 years, easing the burden of EMI on students.

Eligibility for Bank of Maharashtra Education Loan Abroad

Students must fulfill the eligibility criteria to be considered for a Maharashtra Bank education loan -

• Citizenship: Students should be Indian nationals.

• Age: There is no age limit to be eligible for a Bank of Maharashtra Education Loan abroad.

• Recognised universities: Students should have secured admission to a higher education course in recognised institutions abroad through an entrance test or merit-based selection process.

• The following are eligible courses:

1. Graduation Courses – For job-oriented professions or technical courses offered by reputed universities.

2. Post Graduation Courses – MCA, MBA, MS, etc.

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Documents Required for Bank of Maharashtra Education Loan for Studying Abroad

The list of Bank of Maharashtra education loan documents given below has to be submitted by the student at the time of applying for a Bank of Maharashtra education loan for abroad education. Make sure you refer to this checklist before applying to the Bank of Maharashtra education loan for studying abroad.

Checklist for education loan

1. Proof of Identity
2. Proof of Address
3. PAN Card wherever available and applicable
4. Proof of Parental Income - For salaried class

   • Last 2 years ITR

   • Form - 16

   • Last 3 months' salary slips

   • Last 6 months' bank statement

5. Proof of Parental Income - For nonsalaried Class
   • Last 2 years ITR
   • Audited Balance Sheets
   • Past 12 months' bank statement
6. For agriculturists not filing income tax returns, an income certificate issued by a Tahsildar, Mandal revenue officer or Revenue Department Officer having state-level gazetted rank can be provided.

7. Proof of admission - For professional or technical courses abroad achieved through an Entrance test or merit-based selection process

8. Academic certificates - from 10th and 12th certificates and other qualifications (if any)

9. Graduation Mark sheets or certificates

10. Scorecards of Admission exams or else proof of obtaining a seat through merit-based selection process

11. Recognition of institute or college or university (approved by competent authority)

12. Admission acceptance letter from the university

13. Prospectus of institute or college or university

14. Fee structure of the course- This can be either in the Admission letter or College Brochure

15. Receipts of payment already made

How to Apply for the Bank of Maharashtra Education Loan for Abroad Studies?

The education loan process can also be done both online and offline. The offline process can be done by directly filling out the application form in the bank and submitting the required documents. The online application process is stated below -

• Check the eligibility of courses, university, and required documents to be submitted for the loan.

• Once the candidate makes sure that he/she meets the eligibility criteria, then proceed with the loan application.

• To apply for the loan, visit the site Bank of Maharashtra.

• Register an account as a student on the website.

• Fill in the personal details and occupational and financial details of both the applicant and co-applicant. Also, fill in the course and university details to be pursued by the candidate.

• Upload the necessary documents and submit the application.

• The loan application process, on average, takes around 15 days.

• Once the bank confirms the candidate's application, sign the loan agreement and collect the loan sanction letter.

Loan Amount and Coverage

The maximum loan amount provided by Maharashtra Bank education loan for students to study abroad is 20 lakhs, while it is 10 lakhs to study in India. However, loans for a higher amount can be considered on a merit and case-to-case basis. The following expenses can be considered with the Bank of Maharashtra education loan amount abroad:

What all expenses are covered under Bank of Maharashtra education loan?

• Tuition Fees mentioned in the admission letter/university brochure

• Hostel fees

• Cost of books, equipment, uniforms

• Exam fees

• Library fees

• Lab fees

• Travel expenses

• Insurance premium

• Caution deposit

• Building fund, and refundable deposit supported by bills/receipts

• Purchase of computers necessary for course completion

• Study tours, project work, and thesis

Bank of Maharashtra Education Loan Interest Rate

Bank of Maharashtra offers some of the lowest interest rates on Education loan in India. Bank of Maharashtra Education Loan interest rates vary from 10.95% to 11.3% with additional concessions based on merit. The tenure is 15 years for amounts above 7.5 lakhs, which is sufficiently long. The Bank of Maharashtra education loan interest rate for abroad is a cumulative of the base interest rate (9.60%) and an additional percentage.

Interest rates for Bank of Maharashtra Education Loan

• The BOM abroad education loan interest rate for amounts upto 7.5 lakhs is 11.15%

• The Interest rate for Bank of Maharashtra abroad education loan for amounts above 7.5 lakhs is 10.20%

Special schemes and concessions

A concession is provided on the Maharashtra Bank education loan interest rate for the following cases:

• Girl students - 0.5% concession on Interest rates

• Existing home loan borrowers - 0.5% concession on interest rates

• Meritorious Students - 0.25% concession on Interest rates

Repayment Terms

The repayment terms of Bank of Maharashtra education loans is convenient and easy. The moratorium period includes the duration of the course and one year or six months after getting a job. The maximum repayment period is 15 years, ensuring students have enough time to pay back the loan without any stress.

What is margin amount for Bank of Maharashtra education loan?

Following are the margin money requirements for different categories of Bank of Maharashtra abroad education loans.

• For Premium institutions - Nil

• Up to 4 lakhs - Nil

• Above 4 lakhs – 15% for studying abroad

Margin Money - Not all banks provide 100% education loans. Certain percentage of the whole amount needs to be paid by the candidate from their own pockets. The margin amount can be paid for each disbursement made by the bank to the college. This can be done by depositing the required amount in a bank account on a year-to-year basis. Scholarships can also be included in margin money calculations.

Security and collateral for Bank of Maharashtra Education Loan

The security for education loans from the Bank of Maharashtra can be in the form of property (land or building), bank term deposits, government securities, public sector bonds, national savings certificates, Kisan Vikas Patra, life insurance policies, shares, and securities, etc. Here, the loan amount required by the candidate decides the security requirement for the Bank of Maharashtra abroad education loan as follows:

• Upto 7.5 lakhs – No collateral is required. Parents or Guardians have to be joint borrowers.

• Above 7.5 lakhs – Collateral equivalent to the quantum of finance after providing requisite margin along with parents or guardian as joint borrowers

Repayment of Loan Amount

The repayment term of a study abroad loan is up to 10 years after completion of the course for loans up to 7.5 lakhs. Similarly, the repayment term for a loan amount above 7.5 lakhs is 15 years. The grace period is 12 months after completion of studies and 6 months after employment. Here, the grace period is the delay in payment for a short period of time after the completion of studies and employment. During the grace period, the candidate gets enough time to look for suitable jobs and settle.

About Co-borrower

Co-borrower is an individual who co-signs the loan and acts as the primary debtor. A co-borrower for an education loan from the Bank of Maharashtra must be an Indian citizen and parent or guardian of the student. Here, the co-borrower will pay the monthly interest for the Bank of Maharashtra education loan abroad, from the date of the disbursement till the moratorium period. At the start of the repayment period, EMI must be paid monthly or partly for the whole repayment period by the co-borrower or the student. Proof of income is to be submitted by the parent when applying for a Bank of Maharashtra education loan abroad, but this proof will not be considered for assessment of the loan.

Disbursement Process

Disbursement of education loans by the Bank of Maharashtra will be done directly to the institute in stages as per the requirement or demand of the university. The first disbursement of the Bank of Maharashtra abroad education loan will cover the payment of semester fees and hostel expenses given in the admission card. Subsequent amounts will be released annually, proportionate to the expenses towards tuition fees, hostel fees, etc. The special feature of the Bank of Maharashtra abroad education loan includes zero margin for the student loans applied for premier institutions/universities.

Interested students can visit the official website or contact the nearest branch for further information on education loans from Bank of Maharashtra. They can also contact the toll-free number at 1800-233-4526.

Similarly, there are other banks that provide education loans to students and stand out as the top education loan providers in India to study abroad. Students can also look for the best education loan that meets their requirements and apply accordingly to shine their future

Check Other Abroad Education Loans