Pursuing higher education abroad is a dream for many students, and securing the necessary finances can be a crucial step towards achieving that goal. The Bank of Maharashtra offers an education loan scheme designed to assist students in covering the costs of studies at a prestigious international institution.
Here’s a comprehensive guide to the Bank of Maharashtra Education Loan scheme for abroad studies. But before diving into the details let’s discuss the benefits of selecting this leading nationalised bank for your overseas education loan.
Selecting the Bank of Maharashtra for an abroad education loan offers the following benefits:
Higher Loan Amounts: Depending on the applicant's profile and collateral offered, the Bank of Maharashtra may provide higher loan amounts to cover a significant portion of the educational expenses.
Competitive Interest Rates: The Bank of Maharashtra offers competitive interest rates on education loans for studying abroad, making it cost-effective for borrowers.
Quick Processing: The Bank of Maharashtra has streamlined processes for loan approval and disbursement, ensuring a quicker turnaround time for applicants.
Customized Loan Solutions: The bank offers tailored loan solutions based on the individual needs of students, including covering tuition fees, living expenses, travel costs, etc.
Flexible Repayment Options: The bank may provide flexible repayment options, including moratorium periods, allowing students to focus on their studies before starting repayment.
Knowing about these benefits must have enticed you to choose this bank for your loan. So, now we can get into the details about the types of education loan for abroad studies.
There are three types of abroad education loan schemes offered by the Bank of Maharashtra. Let’s discuss them in detail.
Model Education Loan Scheme
This is the most ideal scheme for students who wish to study abroad and will be the main focus of this article.
Maha Scholar Education Loan Scheme for Abroad Studies
This scheme is ideal for students who have secured admission to premium Universities & Colleges abroad like MIT, Oxford, Standford and others.
Maha Bank Skill Loan Scheme
This scheme is ideal for students who wish to participate in skill development courses to enhance their skills.
So, now that we know about the Schemes, the next thing one must always consider while choosing their Bank is the Interest Rate.
The Interest Rate for the education loan is pegged at 10.05% for loans with 120% collateral. Additionally, the Bank of Maharashtra provides various concessions to make the loan more affordable:
0.25% Concession for Maha Saraswati RD (accounts maintained for three years).
0.50% Concession for Female Students.
0.50% Concession for Housing Loan Borrowers who have completed at least three years.
0.50% Concession for Premier Listing Customers.
1% Interest Concession is offered additionally during the Moratorium Period (MP) only.
The total concession is capped at a maximum of 0.50%.
No matter which schemes you are applying to, there are certain Eligibility Criteria you need to meet. They are mentioned below.
The common Eligibility Criteria for an Overseas education loan from Bank of Maharashtra include:
Age: The applicant should be an Indian National between 18 to 35 years of age.
Academic Background: The applicant must have secured admission to a Recognized University/Institution abroad for a specific course.
Co-applicant: Usually, it is required to have a co-applicant such as a parent or guardian. Their income and financial background may also be considered.
Collateral: Collateral might be necessary depending on the loan amount. To secure the loan, the Bank of Maharashtra accepts various forms of collateral, including Residential Flats, Houses, Shops, Commercial Properties, Fixed Deposits and LIC Policies.
Note that, open plots are not accepted as collateral. As for education loans without collateral, it is necessary to have a co-applicant with a strong financial background.
Course and Institution: The course and institution should be recognized by relevant educational bodies and governments.
Repayment Capacity: The applicant or co-applicant should have a stable source of income to ensure repayment of the loan. This might encompass earnings from salary, business operations, and so forth.
Loan Amount: Students aspiring to study abroad can avail themselves of loans up to Rs. 1.5 Cr, providing substantial financial support to cover tuition fees, living expenses, and other associated costs.
Now that we know what makes you eligible for the loan, let’s have a look at the Documents you need to apply for the loan.
Proof of Identity: Documents such as Passport, Aadhaar Card, Voter ID, or Driving License.
Proof of Address: Documents like Passport, Aadhaar Card, Voter ID, Driving License, or utility bills (electricity/water/telephone bill).
Admission Letter: A copy of the Admission Offers or Acceptance Letter from a Foreign University or Institution.
Academic Records: Copies of Mark sheets and Certificates from previously attended Educational Institutions.
Course Fee Details: Breakdown of the Course Fees, including Tuition Fees, Examination Fees, Hostel Fees, etc., from the Foreign Institution.
Co-Applicant’s Documents: If applicable, documents of the co-applicant(s) such as Proof of Identity, Address, Income Proof, etc.
Income Proof: Salary Slips, Income Tax Returns (ITR), or other Income Proof Documents of the Applicant and Co-applicant.
Collateral Documents: If collateral is required, documents related to the collateral such as Property Papers, Fixed Deposit Receipts, etc.
Bank Statements: Bank Statements for the last six months to demonstrate the financial stability of the Applicant and Co-applicant.
Passport-sized Photographs: Applicant and co-applicant’s recent passport-sized photographs.
Once you have all these documents ready, then you can start your loan application. Bank of Maharashtra's Education Loan for Abroad Studies emerges as a beacon of hope for aspiring students seeking to pursue their academic dreams overseas. The Bank of Maharashtra education loan interest rate, coupled with its simple Eligibility Criteria, underscores its commitment to fostering educational advancement.
At Élan Overseas Education Loans, we highly recommend exploring the opportunities provided by Bank of Maharashtra's education loan, enabling students to embark on their journey towards a brighter future with confidence and ease. If you are planning to take an education loan from this bank, then you can connect with our Expert Education Loan Advisors for further assistance.
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