According to recently released data, the number of Indian students abroad increased from 1.32 million in 2023 to 1.34 million in 2024. It’s clear that higher education abroad has become increasingly attractive for Indian students seeking global exposure.
However, studying at international universities comes with a hefty price tag. Tuition fees and living expenses can be enormous by Indian standards, and costs can easily range up to ₹30 lakhs or more per year.
Many students therefore require education loans to fund their education abroad. The Bank of Maharashtra offers education loans to study abroad and support students’ aspirations.
This article analyzes the Bank of Maharashtra’s education loan schemes for Indian students studying abroad.
Why choose the Bank of Maharashtra education loans?
The Bank of Maharashtra is a very well-known and reputed public sector bank. It has 30 million customers across the country. After restructuring the bank has emerged as a top performing public sector lender with 2,200 branches.
Bank of Maharashtra (also known as BoM) offers many types of education loans to help students achieve their dreams. Here’s why BoM education loans are a smart choice:
- BoM education loans have competitive interest rates, which can help students save on interest payments.
- They offer flexible repayment terms and schedules to accommodate applicants with different financial situations.
- Students can choose from various repayment options, such as monthly installments, quarterly installments, or bullet payments.
- The bank offers an online application process, making the process more convenient and efficient.
Also Read: Education loan for Study Abroad Guide for Students
Bank of Maharashtra overseas education loan schemes
In 2024, there are two Bank of Maharashtra education loan schemes.
Model Education Loan Scheme
Meant for Indian students studying in India and approved institutions abroad.
Maha Scholar Education Loan Scheme
For Indian students studying in premier institutions in India such as IITs, IIMs, NITs, etc.
Besides, the bank also offers the Mahabank Skill Loan Scheme for those who want vocational training at ITIs and various polytechnics.
Features of the BoM Model Education Loan Scheme for study abroad
The Bank of Maharashtra offers the Model Scholar Education Loan Scheme for financial assistance to students pursuing higher education. This education loan scheme is for students who secure admission to premier institutions in India or abroad.
BoM Model Education has competitive interest rates and concessions to make education more affordable. The repayment tenure can be decided such that it suits your needs.
Here are the key features of Bank of Maharashtra student loan for study abroad:
Purpose
For studies in India and abroad.
Eligibility
- For education loans in India: The bank finances graduation courses in colleges or universities approved by UGC. Other eligible courses include diplomas or degrees by colleges/universities approved by UGC, AICTE, and other bodies.
- For education loans abroad: BoM education loans are available for professional or technical courses and several postgraduate courses like MCA, MBA, MS, etc.
Age
The bank does not have any age preference. The student must be an Indian national and have secured admission through tests and merit-based selection.
Maximum Loan Amount
- In India: For education in India BoM provides up to ₹10 lakhs.
- Abroad: For study abroad a sum of ₹20 lakhs.
- Loans above these limits can be considered based on merit and case-to-case evaluation.
Security
- Up to ₹7.5 lakhs there is zero collateral security required.
- Above ₹7.5 lakhs there has to be collateral security that matches the loan amount.
- Parents or guardians have to be joint borrowers.
All eligible education loans should be covered under the Credit Guarantee Fund Scheme for Education Loans (CGFSEL). Under this scheme, the government provides a guarantee to banks for education loans up to ₹7.5 lakh.
Margin
- Up to ₹4 lakhs BoM does not require any margin required.
- Above ₹4 lakhs the bank specifies a 5% margin for studies in India and a 15% margin for studies abroad. Therefore for a 40 lakh loan, the student’s family has to self finance ₹6 lakhs.
Rate of Interest
Details of interest rates are mentioned in the next section
Repayment
- The course period plus a uniform one-year moratorium after completing studies.
- Repayment of the loan is spread over a maximum of 15 years after the moratorium ends, with the loan payable in 180 equated monthly installments (EMIs).
Special Offers
- 0.50% interest rate concession for female students.
- 0.50% concession if a housing loan borrower exists with the bank.
- Up to 0.25% concession for meritorious students.
Other Features
- The loan will be granted to students with parents as co-borrowers.
- The loan is disbursed as per requirements directly to the institution or college.
- Pre-approved education loans are available for students applying to multiple universities or colleges for study abroad.
Application
Applications should be made through the Vidya Lakshmi Portal. The bank doesn’t accept in-person applications.
Also Read: How to Get an Education Loan without Parental Support?
Bank of Maharashtra education loan interest rate & concessions
Here are the official interest rates in October 2024 for various Bank of Maharashtra education loans:
| Scheme | Interest Rate | Effective Interest (annual) |
| Model Education Loan Scheme | ||
| Up to Rs 7.50 Lacs | RLLR + 2.00 | 11.30 |
| Above Rs 7.50 Lacs | RLLR + 1.65 | 10.95 |
| Maha Scholar Education Loan Scheme | ||
| List AAA | RLLR – 1.20 | 8.10 |
| List AA | RLLR – 0.95 | 8.35 |
| List A | RLLR – 0.80 | 8.50 |
| List B (Up to 7.5 Lacs) | RLLR + 0.90 | 10.20 |
| List B (Above 7.5 Lacs) | RLLR + 0.65 | 9.95 |
| List C (Up to 7.5 Lacs) | RLLR + 1.15 | 10.45 |
| List C (Above 7.5 Lacs) | RLLR + 0.90 | 10.20 |
| Maha Scholar Overseas Education Loan Scheme | RLLR + 0.50 | 9.80 |
The Bank of Maharashtra offers RLLR-based education loans.
RLLR stands for Repo Linked Lending Rate. It is a lending rate that is directly linked to the repo rate. It is the rate at which the Reserve Bank of India lends money to commercial banks. RLLR changes immediately when the repo rate changes. EBR-linked lending rates are not available at present.
Currently for the past several quarters the RBI repo rate is 6.5%. If the repo rate rises or falls the effective interest rate will change.
Note: If you’re considering a Bank of Maharashtra student loan, it’s also worth exploring the interest rates available through FundRight (by GradRight). With a single FundRight account, you can compare education loan offers from 15 leading domestic and international lenders. FundRight simplifies the loan process by allowing you to see all your options in one place, eliminating the need to visit multiple banks or NBFCs.
FundRight offers several unique benefits. You can access both collateral-free and co-signer-free loan options, giving you flexibility based on your financial needs. The platform also connects you with a personal financial advisor to help negotiate better terms on interest rates, processing fees, and insurance costs. Additionally, you only need to upload your documents once, saving time and effort. By choosing FundRight, you could secure the lowest possible rate and reduce your overall loan expenses, making it easier to focus on your studies abroad.
Create your FundRight account today to explore your loan options and make the best financial choice for your future.
Concessions
Bank of Maharashtra education loan also offers excellent concessions that make the loans even more affordable:
- The bank offers an interest rate concession of 0.50% for girl students.
- Existing Housing Loan borrowers are eligible for a 0.50% interest rate concession.
- Meritorious students can receive an interest rate concession of up to 0.25%.
- The overall maximum interest rate concession allowed is 0.5%.
Other important points
- Simple interest applies during the moratorium period. At this time the repayment is not required. Afterward, when the student is employed interest is compounded monthly.
- A 1% concession is provided if the loan is serviced regularly and when interest or repayments are made during the study period.
- Interest concession is applicable only during the moratorium period.
Eligibility criteria for Bank of Maharashtra education loan application
Indian nationals who have secured admission to prestigious institutions in India or abroad can apply for an education loan with the Bank of Maharashtra. This loan opportunity is available to all students seeking to fund their higher education.
Documents required for Bank of Maharashtra education loan
To apply for an education loan from the Bank of Maharashtra, you must submit a completed application form along with several key documents.
Here’s a table outlining the documents required for an education loan from the Bank of Maharashtra:
| Documents Required | |
| KYC Documents | • Photo ID (PAN Card, Passport, Driving License, Voter ID, or Aadhar)• Proof of address |
| Income Documents | |
| Salaried Individuals | • Salary slips for the last 3 months• Income Tax Return (ITR) for the last 2 years (if applicable)• Salary account statements for the last 6 months |
| Self-employed Individuals | • ITR for the last 2 years• Business bank account statements for the last 12 months• Audited balance sheets and profit & loss statements for the previous 2 years• Proof of business (shop act certificate or Gram Panchayat certificate)• Tax paid challan or Form 26AS |
| Agriculturalists | • Income certificate issued by Tahsildar• Forms 8A and all 7/12 extracts with supporting evidence of income (for those not filing tax returns) |
| Academic Documents | • 10th standard mark sheet• 12th standard mark sheet• Diploma/Degree mark sheets for all semesters• Required exam scorecards or proof of merit selection (DTE/JEE for India, GRE/TOEFL for overseas studies)• Letter of confirmation from an institution with a fee structure or I-20 (for overseas studies)• Fee payment receipt• Quotation for a laptop (if applicable)• Declaration of the source of margin money (if applicable)• Disclosure regarding employment opportunities and expected salary post-employment• Affidavit explaining any gaps in academic records (if applicable)• Declaration regarding interest repayment options during the moratorium period |
| Security Documents | • Recent search and evaluation report of the property• All related property documents as per the housing loan checklist |
FAQs
The Bank of Maharashtra is an excellent lending institution. It has been providing services since 1943 and currently has over 2,000 branches. The bank is known for its network, transparency, and a large number of branches. The staff are experienced and versatile and the quality of service is top rated.
Not at all. Many students confuse an education loan with debt. However, an EMI for an education loan is not the same as an EMI for a new gadget. Education helps you get ahead in life and an education loan is leverage to help you get there and create a sound future.
Most education loans have an interest rate between 8.5% and 11.5% and you can certainly repay it after you begin to earn. Besides you get a moratorium period during which you have to pay nothing back. It is an excellent idea to take an education loan to bolster your CV.
A personal loan is never a good solution for education. While a personal loan is easier to get, it comes with a huge rate of interest. The lowest rate of interest is between 12% and 16% which is 3%-5% more than educational loans. This is because a personal loan is a non-specific loan and the lending institution does not care what it is used for. You can invest it in the share market, travel overseas, or repair your house.
An education loan requires more documentation but you get exactly what you need – an affordable solution to finance your higher education. Moreover, personal loans can never provide you with foreign exchange or remittance to an institution abroad. An education loan is ideal in this regard.
Of course, you can get full coverage of education loans. Many public and private sector banks understand that students find it difficult to put up margin money and offer 100% education loans for study abroad.
When you apply, you have to inform the bank personnel that you cannot provide a margin and they will do the needful to arrange your loan.
