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

Bank of Maharashtra Education Loan – Bank of Maharashtra (BOM) is a major public sector bank in India with the largest network of branches in the state offering education loan to students for the purpose of studies in India and abroad. Under the model education loan scheme the Bank of Maharashtra provides the student loan for study abroad. The high cost of tuition fees and living expenses like accommodation, food, travel, etc., can be made affordable to Indian students to study in foreign countries with the help of a study abroad education loan. Choosing the Bank of Maharashtra loan is one of the best education loan for abroad studies. Let us look at more details like eligibility, interest rates, and loan process for Bank of Maharashtra abroad education loan in this article.

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 an Indian national.

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

• Students should have secured admission to a higher education course in recognized institutions abroad through Entrance Test or Merit-Based Selection process.

• 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.

Bank of Maharashtra Education Loan Amount

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

• Tuition Fees mentioned in the admission letter/university brochure

• Hostel fees

• Cost of books

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. Bank of Maharashtra education loan interest rate for abroad is cumulative of base interest rate (9.60%) and an additional percentages.

Bank of Maharashtra Education Loan Interest Rate

• The BOM abroad education loan interest rate for amounts upto 7.5 lakhs is 11.3%

• The Interest rate for Bank of Maharashtra abroad education loan for amounts above 7.5 lakhs is 10.95%

Special Interest Rates: 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

Margin Amount for Bank of Maharashtra Education Loan

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

• For Premium institutions - Nil

• Up to 4 lakhs - Nil

• Above 4 lakhs – 15% for studies abroad

Margin money - Not all banks provide 100% education loans. The margin amount is a certain percent of money to be paid by the candidate in the whole cost of education 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 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 Deposit, Government Securities, Public Sector Bonds, National Savings Certificate, Kisan Vikas Patra, Life Insurance Policy, 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 study loan for abroad is up to 10 years after completion of the course for loans up to 7.5 lakhs. Similarly, the repayment term for 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 duration 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. 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 for abroad studies 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.

Documents Required for Education Loan in Bank of Maharashtra

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.

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 Tahsildar or 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?

The education loan process can also be done both online and offline. The offline process can be 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/her meets the eligibility criteria, then proceed with the loan application.

• To apply for the loan visit the site Vidya Lakshmi Portal at www.vidyalakshmi.co.in/Students/index

• Register an account as a student on the website.

• Fill in the personal details, occupational and financial details of both 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 averagely takes around 15 days.

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

Bank of Maharashtra Education Loan Customer Care

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 head office at 020-25514501 to 12.

Check other Abroad Education Loans

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