Maharashtra Gramin Bank Education Loan
Maharashtra Gramin Bank education loan is a term loan that helps students fund higher education in India or abroad, with interest rates starting from 9.25% p.a. Repayment runs over 15 years in equated monthly instalments, after a moratorium of the course period plus one year.
Maharashtra Gramin Bank (MGB), a regional rural bank in Maharashtra, provides various core public sector banking services despite its rural focus. The bank offers several banking services, starting from deposits and insurance to debit and credit cards, along with several loan options, including education loan to provide financial assistance to eligible students.
Here are more details that you need to know about Maharashtra Gramin Bank education loan.
Interest Rates for Maharashtra Gramin Bank Education Loan
The eligible candidates can avail themselves of MGB education loan at rate of interest from 9.25% p.a..
Purpose of Maharashtra Gramin Bank Education Loan
The purpose of MGB education loan is to provide financial aid to students pursuing higher education in recognised institutions and who have secured admission through merit-based selection procedure.
Eligibility Criteria for Maharashtra Gramin Bank Education Loan
The following is the list of eligibility criteria that must be fulfilled by the applicant to avail themselves of MGB education loan:
- Indian National
- Minor student represented by guardian or parent
- Admission secured by the student at recognised institution either in India or abroad through merit-based selection process
- Loan offered in joint names of the student and parent or guardian
- Admission to a higher education course after completion of HSC (10+2 or equivalent)
- Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI) are eligible for loans for studies in India only
Loan Amount Limits for Maharashtra Gramin Bank Education Loan
The following are details regarding limit of loan amount under MGB education loan:
- Need-based finance for studies in India or abroad, considering the minimum margins
Note: The limit is subject to the courses applied for by the candidate.
Margin Requirements for MGB Education Loan
The following are details regarding margin of loan amount under MGB education loan:
- Up to Rs.4 lakh: Nil
- Above Rs.4 lakh and up to Rs.7.50 lakh (Studies in India): 5.00%
- Above Rs.4 lakh and up to Rs.7.50 lakh (Studies outside India): 15%
- Above Rs.7.50 lakh (Studies in India or outside India): 25%
Education loan offered by other banks in India
- YES Bank Education Loan
- Gyani (Education Loan) Nainital bank Ltd.
- CSB Bank Limited Education Loan
- IDFC FIRST Bank Education loan
- Kotak Mahindra Bank Education Loan
- Union Bank of India Education Loan
- UCO Bank Education Loan
- TMB Education Loan
- SBI Education Loan
- Saraswat Bank Education Loan
- Punjab National Bank Education Loan
- Karnataka Bank Education Loan
Security Against Maharashtra Gramin Bank Education Loan
The following are details regarding security that can be provided against MGB education loan:
Loan up to Rs.4 lakh:
- Parent will be joint borrower, and no security required
Loan above Rs.4 lakh and up to Rs.7.50 lakh:
- Parent will be joint borrower
- Third party guarantor
Note: The bank may, at its discretion, waive the third-party guarantee in exceptional cases if satisfied with the net worth or means of the parents or guardians executing the document as joint borrowers
Loan above Rs.7.50 lakh:
- Parent will be joint borrower
- Future income of the student will be assigned for installment payment
- Tangible collateral security of suitable value acceptable to the bank
Repayment Tenure for Maharashtra Gramin Bank Education Loan
The following are details regarding repayment duration of MGB education loan:
- All loan amounts: 15 years in equated monthly instalments, excluding the course and moratorium period
Moratorium Period of Maharashtra Gramin Bank Education Loan
The moratorium period of MGB education loan is course period and one year
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Summary
Maharashtra Gramin Bank education loan is a term loan for students pursuing higher education in India or abroad, with interest rates starting from 9.25% p.a. The margin and security requirements rise with the loan amount, and repayment starts after a moratorium of the course period plus one year. Eligible students can check the eligibility, margin and security sections above before applying with the bank.
FAQs on Maharashtra Gramin Bank Education Loan
1.What is the purpose of Maharashtra Gramin Bank education loan?
The purpose of Maharashtra Gramin Bank education loan is to provide financial assistance to the student who has secured admission in recognised institution through merit-based selection procedure to pursue higher education either in India or abroad.
2.What is the repayment duration specified under Maharashtra Gramin Bank education loan?
The Maharashtra Gramin Bank education loan is repaid in equated monthly instalments over a fixed period set by the bank, as listed in the repayment tenure section above. The repayment period excludes the course period and the moratorium period.
3.How much loan amount can I avail myself of under Maharashtra Gramin Bank education loan scheme?
The loan amount under the Maharashtra Gramin Bank education loan scheme is need-based and depends on the expenses of the course along with the minimum margin required. The loan amount limits for studies in India and abroad are explained in the loan amount limits section above.
4.Is the education loan amount provided by MGB based on the courses that the student applies for?
Yes, the courses applied for by the students determine the loan amount provided under Maharashtra Gramin Bank education loan scheme.
5.What is the moratorium period of Maharashtra Gramin Bank education loan?
The moratorium period of the Maharashtra Gramin Bank education loan covers the course period plus an additional period set by the bank, during which repayment is deferred. The exact duration is given in the moratorium section above.
6.Who is eligible for the Maharashtra Gramin Bank education loan?
An Indian national who has secured admission to a recognised higher education course in India or abroad through merit-based selection is eligible for the Maharashtra Gramin Bank education loan. A minor student applies through a parent or guardian, and the loan is offered in the joint names of the student and the parent or guardian.
7.What is the interest rate on the Maharashtra Gramin Bank education loan?
The interest rate on the Maharashtra Gramin Bank education loan is set by the bank and is given in the interest rates section above. The bank may revise it from time to time, so check the current rate before applying.
8.Is a margin required for the Maharashtra Gramin Bank education loan?
The Maharashtra Gramin Bank education loan needs no margin for smaller loan amounts, while larger amounts carry a margin that depends on the loan amount and on whether the course is in India or abroad. The margin slabs are listed in the margin requirements section above.
9.Is collateral required for the Maharashtra Gramin Bank education loan?
Collateral for the Maharashtra Gramin Bank education loan depends on the loan amount, and the parent or guardian is a joint borrower in every case. Smaller loans need no security, while larger loans need a third-party guarantee or tangible collateral, as listed in the security section above.
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