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Comprehensive Guide to Bank of Maharashtra’s Model Education Loan Scheme

Comprehensive Guide to Bank of Maharashtra’s Model Education Loan Scheme

Securing a good education is essential for a successful career. Understanding this need, Bank of Maharashtra offers a student education loan scheme that supports students financially.

This student education loan scheme is meticulously designed to cover educational expenses for students pursuing higher studies both in India and abroad. Here’s a detailed look into BOM’s education loan for studies in India and abroad along with all information related to eligibility, expenses covered, interest rates, and the application process.

Who is Eligible for an Education Loan?

Eligibility is a crucial factor when applying for an education loan. So, which students are eligible for an education loan? Bank of Maharashtra’s Model Education Loan scheme requires applicants to be Indian nationals (including Non-Resident Indian). The Bank also grants loans to Persons of Indian Origin (PIO) / Overseas Citizen of India (OCI) and students who are born abroad and are now studying in India after repatriation of their parents, loans can be considered for studies in India only. The loan is available for students who have secured admission to graduate, postgraduate, and professional courses in India and abroad. Admission should be obtained through an entrance test or merit-based selection process.

The eligibility for abroad education loan also depends on various other factors and we recommend you to get in touch with respective branch for a detailed understanding of the same.

Loan Amount and Coverage

The loan amount varies based on the location of the studies, course enrolled and other studies related expenses.

Expenses Covered

The education loan for abroad studies covers a wide range of expenses, including:

  • Tuition fees, exam fees, library fees, and lab fees.
  • Travel expenses, insurance premium, cost of books, equipment, and uniforms.
  • Caution deposit, building fund, and refundable deposit supported by bills/receipts.
  • Purchase of computers necessary for course completion.
  • Any other expenses required to complete the course, such as study tours, project work, and thesis.

Margin Requirements

The margin requirement is the portion of expenses that the student or family must fund. For loans up to ₹4 lakhs, no margin is required. For loans above ₹4 lakhs, the margin is 5% for studies in India and 15% for studies abroad.

Interest Rates

The education loan for abroad interest rate is structured to ease the financial burden on students and their families. Simple interest is charged during the moratorium period, which includes the course duration plus one year or six months after securing a job. Concessions in interest rates are available for girl students and meritorious students, making education loans more affordable.

Repayment Terms

Repayment of the education loan is designed to be convenient. The moratorium period consists of the course duration plus one year or six months after getting a job. The maximum repayment period is 15 years, ensuring that students have ample time to repay the loan without undue stress.

Security and Collateral
  • Loans up to ₹7.5 lakh: No collateral is required.
  • Loans above ₹7.5 lakh: Collateral is required as security.

Application Process

The education loan application online process is straightforward and convenient. Applicants need to fill out the application form and submit the required documents, including:

  • Proof of identity and proof of residence.
  • Passport size photographs, mark sheets, and proof of admission.
  • Schedule of expenses, borrower’s bank account statement for the last six months.
  • Income proof of the co-borrower (parents/guardian).
  • Copies of documents for collateral security, if applicable.
Special Schemes and Concessions

Bank of Maharashtra offers special concessions in interest rates for girl students and differently-abled students, promoting higher education among these groups. Additionally, the Bank offers additional concession to its existing housing loan borrowers and also extends concessions to meritorious students based on their previous academic performance.

Key Considerations

When applying for an education loan, it’s essential to consider the checklist for education loan for abroad interest rate. Along with this, you should also check if you can apply online for education loan.

Understanding the interest rate, repayment terms, and required documentation will ensure a smooth application process. Applicants must be aware of BOM education loan for abroad eligibility criteria to ensure they meet all the necessary requirements.

Conclusion

Bank of Maharashtra’s Model Education Loan Scheme provides comprehensive financial support for students aiming to pursue higher education in India and abroad.

By covering a wide range of expenses and offering favorable interest rates and repayment terms, the scheme is designed to make education accessible and affordable. Prospective students and their families should thoroughly understand the eligibility criteria, interest rates, and application process to take full advantage of this opportunity.

For more detailed information and to apply, visit the Bank of Maharashtra’s Education Loan Scheme page.

Author: Bank of Maharashtra
Date of Publish: 20 Jun, 2024

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