Bank of Maharashtra Interest Subsidy Schemes on Education Loans
Bank of Maharashtra allows its education loan applicants to apply for interest rate subsidies under one interest subsidy scheme, viz.
- Central Sector Interest Subsidy Scheme
Let us look at it in some detail.
Features of Bank of Maharashtra Central Sector Interest Subsidy Scheme for Education Loans
Why this Scheme?
Under this scheme, the Central Government takes care of any interest component that arises during the moratorium phase of an education loan taken by economically weaker students for technical or professional courses. The moratorium usually comprises of the duration of the course and an additional time of 12 months after completion of the programme or 6 months after landing a job, whichever is earlier.
- The maximum loan amount provided without any collateral security and third-party guarantee under this education scheme is Rs. 7.5 lakh
- The scheme is only available for economically weaker students who are pursuing technical or professional education studies in India. Economically weaker sections refer to families that earn a gross yearly income of Rs. 4.5 lakh or less
- The students will have to show an income proof from such public authorities as are authorised by the state governments for certification of income status for this scheme and other central and state sector schemes
- The scheme will be available to eligible students only once, either for their first undergraduate or post-graduate degree or diploma courses in the country. The subsidy shall also be applicable to integrated graduate and post-graduate courses
- The scheme will not apply to students who are expelled or stop pursuing studies unless on medical grounds in which case the necessary documentation must be provided to the bank
- The subsidy scheme will apply to courses from all accredited universities and institutions, and professional courses recognised by UGC, AICTE, etc.
- The Interest Subsidy Scheme on Education Loans will also apply to courses in Central Institutes of Hotel Management and Catering Technology, State Institutes of Hotel Management and Catering Technology, Food Craft Institutes and Indian Institutes of Tourism and Travel Management that are administered by the Ministry of Tourism
- The interest rates charged on the educational loan is the sum of Marginal Cost of Funds-based Lending Rate (MCLR) and an additional factor of 2.00%. As of October 2020, the 1-year MCLR of Bank of Maharashtra is 7.30% and so the resulting interest rate will be 9.30%
- Once the moratorium phase ends, the student will be liable to pay the interest on the outstanding loan amount in accordance with the provisions of the Educational Loan Scheme of Banks
Tags with Certificates
- The certificates of students who have availed the scheme will have a tag or a marker that indicate their repayment liabilities to future employers
Other Features to Know
- This is a comprehensive model educational loan scheme that was formulated by the Indian Banks’ Association (IBA) for adoption by all scheduled banks and aims at providing financial support from the banking system to deserving or meritorious students to pursue higher education in the country or abroad
- The nodal bank for the scheme is Canara Bank
- Bank of Maharashtra Website: www.bankofmaharashtra.in and www.mahaconnect.in (net banking)
- Headquarters: Pune, Maharashtra
- Call Centre Toll-Free Number: 1800 233 4526