Looking for an Education Loan to Finance Your Technical Education?

You are at the right place. This page contains all the information you will need on Bank of Maharashtra’s Skill Loan Scheme, also referred to as Pradhan Mantri Kaushal Rin Yojana.

Bank of Maharashtra’s Skill Loan Scheme

This loan helps students who have gained admission into technical courses offered by government-recognised Industrial Training Institutes (ITI), schools, colleges and polytechnics to pay for their course fees. The loan amount starts from Rs. 5,000 and can go up to Rs. 1.5 lakh.

Features of Bank of Maharashtra Skill Loan Scheme

Why this Loan?

  • The loan is meant for you if you have gained admission into a technical course offered by a polytechnic, Industrial Training Institute (ITI), school, college or training institute recognised by the government and eligible to offer the Pradhan Mantri Kaushal Vikas Yojana
  • The bank disburses the Bank of Maharashtra Skill Loan Scheme as a series of payments over the required number of terms or years to pay the course fees or other approved expenses

Loan Amount

  • The minimum loan amount starts from Rs. 5,000 and the maximum amount can go up to Rs. 1.5 lakh

Interest

  • The interest rate charged will be the sum of 1-year Marginal Cost of Funds-based Lending Rate (MCLR) which is currently 7.30% and a strategic premium of 2.00%. This makes the effective interest rate for this loan scheme to be 9.30%
  • Simple interest is charged monthly during the moratorium period
  • The loan offers the option to the borrower to pay the interest portion during the moratorium period. If the borrower choses to do so, the interest rate is reduced by 1% for the tenure of the loan. No concession is applicable after the commencement of the repayment period

Repayment

  • Loans of up to Rs. 50,000: Repayment period is up to 3 years after course completion
  • Loans between Rs. 50,000 and 1 lakh: Repayment period is up to 5 years after course completion
  • Loans above Rs. 1 lakh: Repayment period is up to 7 years after course completion
  • The repayment moratorium for courses of less than 1 year is equal to the sum of the course duration and an additional grace period of 6 months after course is completed
  • The repayment moratorium for courses of over 1 year duration is equal to the sum of the course duration and an additional grace period of 12 months after course is completed

Security Needed

  • Bank of Maharashtra does not ask for any collateral or third party guarantee

Eligibility

  • The borrower should be an Indian national
  • The student must have acquired admission into an institute or organisation as per the National Skill Qualification Framework (NSQF)

Eligible Courses

  • Courses offered by Industrial Training Institutes (ITIs), polytechnics, schools recognised for the same by the central or state education board or college affiliated to a recognised university
  • Certificate, diploma or degree course from training centres that are affiliated to professional skill augmentation bodies such as National Skill Development Corporation (NSDC), sector skill councils, state skill missions, state skill corporations and who operate under the National Skill Qualification Framework (NSQF)
  • The bank allows its State Level Bankers committee (SLBC) or State level Co-ordination Committee (SLCC) to add state-specific skill development courses that offer good employability opportunities for course students

Borrower Contribution to Total Cost (Margin Money)

  • Bank of Maharashtra can charge token margin money as down payment from the borrower. However, the margin money and amount paid as interest during the moratorium period should not exceed 10% of the loan amount.

Note: Margin money refers to the amount the borrower contributes to the overall amount required

Processing and Other Charges

  • There are no processing charges for this loan mentioned on the bank’s website

Uses of the Loan

  • The loan amount can be used to pay any fees or other charges that are a part of the standard tuition cost
  • The loan can also be met to cover examination, library and laboratory fees
  • It also covers any caution deposit fees
  • It can also be used to buy books or equipment or instrument needed for the course

Other Features to Know

  • The borrower can repay the loan from any time without having to pay any prepayment charges
  • Bank of Maharashtra offers optional insurance cover to borrowers. The premium is recovered through EMIs
  • During application, the borrowers should provide an affidavit that they have not taken an education loan from another bank
  • The student’s progress report has to be submitted with the bank after each term or semester before availing the next instalment
  • The loan is disbursed directly to the college, book seller or publisher, computer seller, and so on and not to the applicant

Documents Needed

  • Application Form duly filled and signed by applicant and/or guarantor along with details of applicant and/or guarantor and family
  • Two Passport Size Photographs of student, applicant and/or guarantor
  • Photocopy of PAN Card of the student that needs to be submitted at the time of application or during the course period
  • Personal Identification Proofs (Any One): Electoral I-Card, Passport, Driving License, PAN Card or Aadhaar Card
  • Residential Address Proof (Any One): Electricity Bill, Landline Telephone Bill, Electoral or Voter ID Card or Passport
  • Proof of Parental Income (Salaried Class): ITR of last 2 years, Form 16, Salary Slips of last 3 months and Bank Statement of last 6 months
  • Proof of Parental Income (Non-salaried Class): ITR of last 2 years, Audited Balance Sheet and Bank Statement of last 12 months
  • Admission Letter, Course Details and Prospectus
  • Fee Structure of the Institution
  • Any receipt of payments already made
  • All Proofs of Past Academic Record including Mark Sheets and Certificates
  • Certificate of recognition or approval of institute by a competent authority
  • An Income Certificate from a Competent Authority to avail the interest subsidy under Central Interest Subsidy Scheme of Education Loans, if eligible
  • Property or other security documents wherever applicable

Reference Facts

  • Bank of Maharashtra Website: www.bankofmaharashtra.in and www.mahaconnect.in (net banking)
  • Headquarters: Pune, Maharashtra
  • Call Centre Toll-Free Number: 1800 233 4526