To help you make an informed decision, we’ve answered the most frequently asked questions about the abroad education loan offered by the Bank of Maharashtra.
Top FAQs on Bank of Maharashtra Education Loan
1. Who can apply for the Bank of Maharashtra Education Loan?
One of the best parts of this education loan is that all income groups are eligible. So, whether you belong to a high-income or modest-income family, you can still apply for this loan, provided you meet other eligibility criteria.
2. What is the maximum Bank of Maharashtra Education Loan amount I can get?
You can avail a secured loan of up to ₹1.5 crore for higher studies abroad. This amount can cover all major expenses like tuition fees, living expenses, travel costs, and other academic fees.
3. What is the funding structure & margin money required?
The bank offers funding of up to 85% of the total cost of education, and the remaining 15% is to be borne by the applicant or their family. This margin must be paid with every disbursement of the loan.
4. What is the rate of interest, & what concessions are available?
The standard rate of interest (ROI) for a secured loan is 10.05%. However, the bank offers several attractive concessions, including:
- 0.25% discount for Mahasaraswati RD account holders (3 years).
- 0.50% discount for girl students.
- 0.50% discount for existing housing loan borrowers (with at least 3 years completed).
- 0.50% discount for students of Premier Institutes.
- An additional 1% interest concession during the moratorium period (MP).
Please note: The total maximum concession is capped at 0.50%, excluding the 1% moratorium concession.
5. What levels and types of courses are covered under this loan?
Bank of Maharashtra offers loans for a wide range of programs, including:
- Master’s Degrees
- Bachelor’s Degrees
- Postgraduate Diplomas
- Pathway, Foundation, and Integrated Courses
However, it is important to note that UG Diploma and Certificate courses are not covered under this loan scheme.
6. What is the Loan Repayment tenure?
You can repay the loan within a period of up to 15 years after completing your studies and the moratorium period.
7. How is the Bank of Maharashtra Education Loan disbursed?
The bank ensures secure and convenient disbursal of funds;
Tuition Fees: Directly transferred to the University’s account.
Living Expenses
- For On-Campus Accommodation: Sent to the University.
- For Private Housing: 3–6 months of expenses are disbursed either to the landlord, in the
bank’s forex card, or to a country-specific account, depending on visa norms.
Moreover, the loan can be disbursed both pre-visa and post-visa, depending on the country-specific guidelines.
8. What kind of collateral is accepted?
For loans that require security, the following types of property and assets are accepted:
• Residential Flats or Houses
• Shops or Commercial Properties
• Fixed Deposits
• LIC policies
Note: Open plots are not accepted as collateral.
9. What is the Security Margin?
The bank usually sanctions up to 80% of the loan amount based on the Market Value (MV) of the pledged property or asset.
10. How long does it take to process the Bank of Maharashtra Education Loan (TAT)?
The Turnaround Time (TAT) for processing the Bank of Maharashtra education loan is between 20 to 30 working days. It is advisable to start the process early, especially if your admission deadlines are approaching.
11. Who can be a Co-Applicant or Sponsor?
To apply for tx`he loan, you’ll need a financial co-applicant. Eligible sponsors include, ParentsM Grandparents and Immediate family members. This ensures that someone is available to repay the loan in case the student is unable to do so.
12. Is serving simple interest during the study period mandatory?
No, paying simple interest during the moratorium period (course duration + 6 to 12 months) is optional. However, doing so will reduce your repayment burden in the long run.
13. Is there a requirement for a facing balance?
Yes, students are required to show a facing balance, which is usually maintained in the bank account to show financial readiness.
All in all, the Bank of Maharashtra education loan is a reliable and beneficial option for students looking to fund their higher education. With a high loan amount, competitive interest rates, and flexible repayment terms, it caters to a wide range of academic needs.
Since the criteria for education loan approval can vary based on your course, financial background, and collateral availability, it’s essential to understand each requirement thoroughly. If you're looking for additional guidance, consulting a trusted overseas education loan expert can help simplify the process and boost your chances of loan approval.