Features of Bank of Maharashtra Unsecured Education Loan
- High Loan Limits: Up to â‚ą10 lakh for studies in India and â‚ą20 lakh for studies abroad, covering premier institutions without collateral up to â‚ą7.5 lakh.
- Competitive Interest Rates: Floating rates linked to MCLR, ranging from 8.55%–8.90%, with concessions for girl students and meritorious students.
- Comprehensive Expense Coverage: Covers tuition, hostel, books, equipment, travel (for abroad studies), exam/library fees, and other course-related costs.
- Flexible Repayment Tenure: Up to 15 years post-moratorium (course duration + 1 year or 6 months after employment), with no prepayment penalties.
- No Collateral Up to â‚ą4 Lakh: Loans up to â‚ą4 lakh require no collateral security. Parents or guardians act as co-borrowers, ensuring accessibility even for students from modest financial backgrounds.
- Broad Eligibility: Available to Indian nationals admitted to recognized educational institutions via merit or entrance exams. Covers a wide range of courses including UG, PG, technical, professional, and skill development programs. No age restrictions apply.
- Wide Course Coverage: Supports graduation and postgraduation courses (B.A., B.Com, M.Sc., etc.), professional programs (engineering, medical, management), diploma/certification, and NSQF-aligned skill development courses.
- Interest Subsidy Schemes: Includes CSIS for EWS (income ≤ ₹4.5L), Padho Pardesh for minorities studying abroad, and Dr. Ambedkar Scheme for OBC/EBC students. These cover interest during the moratorium period.
- No Processing Fees: Zero upfront processing charges, reducing initial costs and enhancing affordability for all students.
- Tax Benefits: Interest paid qualifies for tax deduction under Section 80E for up to 8 years, reducing the effective borrowing cost.
- Instant Sanction for Premier Institutions: Fast-track in-principle approvals for students admitted to top institutes like IIMs, IITs, AIIMS, XLRI, ISB, etc.
- Relaxed Criteria for SC/ST: No margin money and relaxed eligibility norms apply to students from Scheduled Castes and Tribes, promoting social equity.
- Support for Premier Institutes: Up to 100% financing and no collateral for premier institution students. Extra coverage includes â‚ą1.5 lakh for two-wheelers and â‚ą0.75 lakh for additional educational expenses.
- Skill Loan Scheme: Provides loans up to â‚ą7.5 lakh for vocational training under the NSQF framework without the need for collateral.
- EMI Calculator: Online calculator tool helps estimate monthly EMIs based on loan amount, interest rate, and tenure—helpful for financial planning.
- Affordable Interest Rates & Concessions: Floating rates (8.55%–8.90%) with concessions: 0.10% for girl students, up to 0.25% for meritorious students, and 0.25% for Mahasaraswati account holders.
- Flexible Repayment Terms: Repayment up to 10 years for loans ≤ ₹7.5 lakh and up to 15 years for loans > ₹7.5 lakh, excluding moratorium. No prepayment penalty.
- Moratorium Period: Includes course duration + 1 year or 6 months post-employment, whichever is earlier, easing the burden during job search.
- Easy Application Process: Apply online via Bank of Maharashtra portal or Vidya Lakshmi or visit a nearby branch. Instant approval for premier institutes with minimal documentation.
- Competitive Interest Rates: The Bank of Maharashtra offers competitive interest rates, ranging from 10.55% to 11.30% for unsecured educational loans, particularly for studies abroad.
- Concessions for Specific Groups:
The bank provides special interest rate concessions to encourage inclusivity. Female
students receive a 0.50% concession, promoting higher education among women.
- Flexible Loan Amounts: The unsecured educational loan covers a wide range of expenses, with loan amounts up to â‚ą10 lakh for studies in India and â‚ą20 lakh for studies abroad.
- Comprehensive Expense Coverage: The loan encompasses various education-related expenses, including examination fees, laboratory fees, and the cost of laptops or computers essential for studies.
- No Margin Money for Lower Loan Amounts: For loans up to â‚ą4 lakh, the Bank of Maharashtra does not require any margin money, meaning students can receive 100% financing.
- Support for Premier Institutions: Students admitted to premier institutions like IIMs, IITs, ISB, XLRI, or AIIMS can avail loans without margin money, even for amounts exceeding â‚ą4 lakh.
- Interest Subsidy Schemes: The Bank of Maharashtra participates in the Central Sector Interest Subsidy Scheme, providing full interest subsidy during the moratorium period for students from economically weaker sections.
- Long and Flexible Repayment Tenure: Repayment tenure is up to 15 years for loans above â‚ą7.5 lakh and up to 10 years for lower amounts. Moratorium includes course duration plus one year or six months after employment.
- Tax Benefits: Borrowers can claim tax deductions on the interest paid under Section 80E of the Income Tax Act for up to eight years. This reduces the effective cost and encourages financial responsibility.
- Hassle-Free Application Process: Available both online and offline with minimal documentation. The application process is streamlined, and no processing fees apply under specific schemes like Maha Scholar.
- Support for Diverse Courses: Covers job-oriented professional and technical programs, postgraduate degrees, and skill development courses. Includes institutions approved by UGC, AICTE, and reputed foreign universities.
- Customer-Centric Features: No prepayment penalties allow early repayment without cost. The bank provides strong customer support through 2,263 branches and online guidance.
- Empowering Marginalized Communities: Offers interest subsidies and concessions for female, minority, and EWS students. Supports social mobility by removing financial barriers to quality education.
Frequently Asked Questions (FAQs)
What is an unsecured educational loan from Bank of Maharashtra?
An unsecured educational loan is a loan offered without requiring any collateral or security,
primarily based on the student's academic background and future earning potential.
Who is eligible to apply for an unsecured educational loan from Bank of
Maharashtra?
Indian students who have secured admission to professional or technical courses in recognized
institutions in India or abroad are eligible, subject to the bank’s credit and academic criteria.
What is the maximum loan amount offered without collateral?
Bank of Maharashtra may offer up to â‚ą7.5 lakhs for studies in India and a higher amount for studies
abroad without collateral, depending on the applicant’s profile and co-applicant’s financial
strength.
What is the interest rate for unsecured educational loans?
The interest rate is typically linked to the bank’s base rate or external benchmark (like RLLR) and
may vary based on the loan amount, course, and institution. Concessions are available for female
students.
What documents are required to apply for the loan?
You need admission proof, academic records, KYC documents, income proof of co-applicant, and fee
structure from the institution.
Is a co-applicant mandatory for unsecured education loans?
Yes, a parent or guardian is generally required as a co-applicant to support the loan repayment.
What expenses are covered under the loan?
The loan covers tuition fees, examination fees, books, equipment, travel expenses (for studies
abroad), hostel fees, and other related costs.
How long is the repayment tenure for unsecured education loans?
Repayment can typically be made over a period of up to 15 years, including a moratorium period
during the course and an additional grace period of 6 to 12 months.
When does repayment start?
Repayment starts after the moratorium period, which includes the course duration plus 6 to 12
months.
Can I prepay the loan before the end of the tenure?
Yes, Bank of Maharashtra usually allows prepayment of education loans without any prepayment
charges.
Do I need to pay interest during the study period?
Simple interest may be charged during the moratorium period. You can choose to pay it during the
study period or have it capitalized.
Are there any processing fees for the loan?
There may be a nominal processing fee, which can vary depending on the loan amount and the nature of
the course.
How do I apply for an unsecured education loan from Bank of Maharashtra?
You can apply by visiting the nearest branch, through the official website, or via an authorized
loan facilitator. It’s advisable to check eligibility and documentation before applying.
List of Bank of Maharashtra Unsecured Education Loans
- Loan for Studies in India
- Loan for Studies Abroad
- Loan for Professional & Technical Courses
- Loan for Vocational Training & Skill Development
- Loan for Full-time Degree/Diploma Courses
- Loan for Part-time/Evening Courses
- Loan for Certificate Courses
- Loan for Online Education Programs
- Loan for Management Studies (MBA/PGDM)
- Loan for Medical & Paramedical Courses
- Loan for Engineering & Technical Studies
- Loan for Aviation & Pilot Training
- Loan for Competitive Exam Coaching