Bank of Maharashtra Education Loan

The education loan schemes of the Bank of Maharashtra are specially designed to provide financial assistance to students admitted to top educational institutions in India and acquire quality education. 

Let’s understand the other aspects of each scheme individually, in detail;

Maha Scholar Education Loan Scheme

Purpose: Provide financial support to Indian students pursuing full-time degree/diploma courses in top-tier institutions, fostering enduring partnerships for sustained retail loan growth.

Eligibility: Indian nationals admitted to A, B, or C category institutions qualify.

Loan Amounts: Ranges from Rs.7.5 lakhs to Rs.80 lakhs, contingent on institution category and collateral availability.

Covered Courses: Includes full-time degrees, executive management courses like PGPX/EPGP, and part-time graduate/post-graduate courses for working professionals in category A institutions.

Expenses Covered: Tuition, exam/library/lab fees, study materials, laptops, deposits, insurance premiums, and more.

Margin: No margin for category A, 5% for B and C institutions.

Insurance Coverage: Group/life insurance covers outstanding amounts in unforeseen circumstances.

Repayment: Moratorium period plus one year, with a maximum repayment of 180 months (excluding the moratorium).

Processing Fee: No charges

Interest Rate Concession: 0.10% concession for female students and part-time courses for working professionals from category A institutions.

Part-time graduate/PG degree/diploma courses for working professionals- Category A 

Experience: Minimum 12 months of work experience required.

Occupation: Open to salaried and self-employed professionals (e.g., doctors, architects, advocates, chartered accountants).

Age Limit: Applicants should be below 50 years old and remain employed during their studies.

Courses Covered: Part-time graduate/post-graduate programs at Category A institutions in Management.

Loan Amount: Maximum loan amount: Rs.30.00 Lakh.

Course Duration: Minimum 1-year course duration required.

Income Deduction: 65% deduction from Gross Monthly Income.

Moratorium: Extends throughout the course duration plus 3 months.

Repayment Period: Salaried individuals: 15 years or until retirement, including the moratorium. Self-employed: 15 years, including the moratorium.

Interest payment: Compulsory interest payment during the moratorium.

Security: No need for collateral. Income assignment considered per Maha Scholar Loan Scheme guidelines for Category A full-time courses.

Part-time post-graduate degree/PG diploma courses for MBBS doctors 

Eligibility: Completion of an MBBS from an MCI-approved Indian medical college.

Age Limit: The maximum age allowed is 45 years.

Covered Courses: Post-graduate degrees and PG diploma courses from MCI-approved medical institutions.

Loan Amount: Up to Rs.80.00 Lakh with 100% collateral; Rs.40.00 Lakh without collateral.

Course Duration: Minimum course duration: 1 year.

Moratorium: Course duration plus 6 months.

Repayment Period: 15 years (excluding the moratorium).

Maha Bank Skill Loan Scheme

Aim: This initiative offers financial support for skill development courses meeting the Skilling Loan Eligibility Criteria.

Eligible Courses & Institutions: Recognized institutions like ITIs, Polytechnics, NSDC/Sector Skill Council-affiliated partners, State Skill Missions/Corporations, schools, and colleges affiliated with recognized universities offering NSQF-aligned certificates/diplomas/degrees.

Minimum Qualification: As per NSQF and institution requirements.

Loan Amount: Rs.5,000 to Rs.1,50,000.

Margin & Processing Charges: None.

Security: No collateral needed.

Guarantee: Covered under CGFSSL. Parents/guardians as joint borrowers; spouse can be co-applicant where applicable.

Repayment Period:

• Up to Rs.50,000: Within 3 years.
• Above Rs.50,000 up to Rs.1 lakh: Within 5 years.
• Above Rs.1 lakh: Within 7 years.

Note: A special discount of 0.1% in the rate of interest is offered to girl students.

Bank of Maharashtra has its own EMI calculator available on its website, but we suggest you to use the WeMakeScholars Education loan EMI calculator, as it provides more detailed analysis about your repayment statistics, including:

• EMI amount
• Interest component in the EMI
• Principal amount repaid towards loan
• Outstanding loan amount

Here is an example of how to calculate the EMI for a Bank of Maharashtra education loan:

Let’s assume that you have taken a loan of Rs. 10 lakhs for a course period of 24 months. The interest rate is 8.5% per annum and the moratorium period is 12 months. You will not be paying during the study + moratorium period. Here is how you can calculate the EMI:

Calculate the total amount payable after the moratorium period:

Total amount payable = Loan amount + (Loan amount * Interest rate * Moratorium period / 12)
Total amount payable = 10,00,000 + (10,00,000 * 8.5 * 12 / 100)
Total amount payable = Rs. 11,02,000

Calculate the EMI using the following formula:

EMI = [P x R x (1+R)N]/[(1+R)N-1]Where,

P = Principal amount (loan amount)

R = Rate of interest (monthly)

N = Tenure (in months)

Monthly interest rate = Annual interest rate / 12
Monthly interest rate = 8.5 / 12 = 0.708%
Tenure = Course period + Moratorium period
Tenure = 24 + 12 = 36 months

EMI = [10,00,000 x 0.708% x (1+0.708%)36]/[(1+0.708%)36-1]

EMI = Rs. 32,042

So, the EMI for your Bank of Maharashtra education loan would be Rs. 32,042.

The education loan repayment period in the Bank of Maharashtra is 15 years, which starts immediately after the moratorium period ends. Students are provided an education loan sanction letter in which the current effective rate of interest is mentioned along with, repayment conditions, EMI amounts, outstanding loan amount along with other important parameters of the education loan repayment process.

Though students can pay monthly installments as EMI for the entire repayment period to repay their education loan, but they can end their education loan before the repayment period as well, by applying the following methods:

• Opting for shorter repayment periods
• Pre-payment or Part repayment
• Considering transferring your education loan

The Government of India has introduced several interest subsidy schemes for students who wish to pursue higher education in India or abroad. These schemes provide financial assistance or interest subsidies to qualifying students. Some of the popular schemes include:

1. Central Govt. Interest Subsidy Scheme (CSIS)
2. Padho Pardesh Scheme
3. Dr. Ambedkar Scheme for OBC and EBC

(To know more about these subsidy scheme click here)

Central Govt. Interest Subsidy Scheme (CSIS)

• Offers interest discounts on education loans up to 7.5 lakhs.
• Eligibility:
  
  • Indian citizenship required.
  • Applicable to Indian educational programs.
  • Income limit: Rs 4.5 lakhs annually.

Padho Pardesh Scheme

• For economically disadvantaged minority students, offering interest subsidies on international education loans up to 7.5 lakhs.
• Eligibility:
  • Indian citizenship required.
  • Applicable to Indian study programs.
  • Income limit: Rs 6 lakhs annually. 

Note: The Padho Pardesh Scheme has been inactive since April 1, 2022. Existing beneficiaries continue to receive benefits.

Dr. Ambedkar Scheme for OBC and EBC

• Provides interest-free education loans during moratorium for OBC and EBC students.
• Eligibility:
  
  • Required caste certificate.
  • OBC/EBC families with income below 8 lakhs annually.
  • Proof of income may be requested.
  • Admission in approved foreign Masters, M.Phil, or Ph.D. programs.