Many aspire to pursue higher education, but the growing expenses frequently become a barrier. The Bank of Maharashtra education loan aims to give students who want to pursue high-quality education in India or outside financial support. This post will walk you through the features, advantages, requirements for qualifying, and application procedure for a Bank of Maharashtra education loan.
Bank of Maharashtra Education Loan Overview
Maximum Loan Amount | Up to ₹20 lakhs |
Loan Tenure | Up to 15 years |
Interest Rate | Ranges from 10.55% to 11.30% |
Special Scheme | Maha Scholar Education Loan Scheme with an effective ROI of 9.45% |
Coverage | Tuition fees, living expenses, and other academic-related expenditures |
Eligibility | Available for students studying in India and abroad |
Top Institutions Covered | IIM, IIT, ISB, XLRI, AIIMS, and other reputed institutions |
Repayment Flexibility | Flexible repayment options tailored to student needs |
What is an Education Loan?
An education loan is a loan or sum of money obtained by a person to continue their education in India or outside. Following graduation, the student’s loan repayment begins, and they are granted a six-month grace period to find or accept employment.
Your choice of interest rate will influence the repayment amount; you must choose how you wish to pay back the loan. That is if you wish to begin making payments either during or after the moratorium period. The moratorium period is the duration of your study plus an additional six months or a year to find employment. You only need to make the payment after this period. You have a substantial amount to return by the time you graduate because the loan interest begins to accrue at the time the funds are disbursed. The alternative is for your guardian or parents to begin making loan payments during the actual moratorium period when the interest is computed as simple interest.
4 Types of Education Loans in India
- Career growth education loans: These loans are given to young people who wish to enroll in training programs or earn certificates that would advance their careers.
- Under Graduate education loan: Students who have finished secondary school and want to pursue further study through undergrad are offered these. It might be carried out overseas or in India.
- Post-graduate education loan: Following their completion of undergraduate studies at a reputable university or institution, these education loans are granted to those who choose to pursue post-graduation studies. Here, too, the loan may be taken out for overseas or Indian education.
- Parents availing of education loan: In this instance, the parents take out a loan to help their kids with their schooling. This is an unsecured loan that can be used for primary and upper secondary education as well as graduate or post-graduation courses.
Bank of Maharashtra Education Loan Interest Rate
- The interest rate on Bank of Maharashtra education loans fluctuates in response to changes in the market.
- Interest discounts are offered to girls at a rate of 0.50% and to meritorious, worthy students at a rate of 0.25%. Additionally, students who consistently pay Simple Interest throughout the moratorium period are eligible for a discount of up to 1%.
- The Repo Linked Lending Rate (RLLR) plus 1.65% to 2% is the effective interest rate for student loans. For all loans from the Bank of Maharashtra, the current RLLR is 9.30%. Keep in mind that the effective interest rates on school loans are subject to vary, just like the RLLR.
Pros of Education Loan Bank of Maharashtra
- After the student receives the first payout, the processing charge is reimbursed.
- Students who qualify can receive interest subsidies when they repay their loans.
- When compared to many private banks and NBFCs, the interest rate on education loans offered by the Bank of Maharashtra is cheaper.
- Girls, deserving students, and students who consistently pay interest throughout the moratorium period are all eligible for concessions.
- Section 80 E allows students to receive tax benefits when they repay the interest on their student loans.
How to Apply?
Online Application:
- Click on the “Loans” tab after visiting the Bank of Maharashtra’s official website.
- Click “Apply Online” after choosing “Education Loan” from the drop-down menu.
- Provide the necessary information on the online application form, such as your data, course details, and loan requirements.
- Upload the required files, which ought to contain proof of identity, address, and income.
- Wait for a call from a bank representative after applying.
Offline Application:
- Ask for an application for an education loan when you visit a nearby Bank of Maharashtra location.
- You must now complete the application form by providing the necessary information, such as your details, course details, and financing requirements.
- Include the necessary paperwork, such as identification, proof of address, and evidence of income.
- Give the bank agent your application.
- Await the bank to process your application and get in touch with you for additional verification or supporting evidence.
Conclusion
For students who need financial assistance to fulfill their academic goals, the Bank of Maharashtra Education Loan is the best option. It guarantees hassle-free finance for education in India or overseas with affordable interest rates, flexible payback plans, and covering for living expenses and tuition. Make the most of this chance to invest in your future and easily achieve your professional goals.