Bank of Maharashtra

The Mahratta Chamber of Commerce (MCC) was established in Poona in 1934 and its Founder Secretary Shri A.R.Bhat was a great visionary.

Shri Bhat initiated for a comprehensive review of banking services available in the region through the special issue of Kesari news paper released in memory of Lokmanya Tilak within a few months of establishment of MCC. He ensured that his friend, Shri V. P.Varde, considered as a doyen of co-operative movement, wrote an article on the necessity of a separate bank for Maharashtra, thus launching a public discussion on the subject. While there was no noticeable response to the article of Shri Varde, Shri A R Bhat kept on discussing the subject with leaders in Trade and Industry.

Shri Bhat  ensured that Mahratta Chamber and its Directors took up the issue and held a Conference on Business and Industry in Poona on behalf of the MCC in February1935.  

Shri Bhat pushed the proposal for formation of a bank and succeeded in getting the following resolution adopted by the conference:

"For providing capital to the trade and industry in Maharashtra, it is essential to establish a Joint Stock commercial bank. The Mahratta Chamber is, therefore, requested to make all the necessary enquiries in that behalf and take appropriate steps for floating such a bank. The business community in Maharashtra is urged to support such an effort. "

The Bank of Maharashtra was registered on 16 September 1935 with an authorized capital of INR 1 million, and began business on 8 February 1936. Bank's financial assistance to small units has given birth to many of today's industrial houses. After nationalization in 1969, the bank expanded rapidly.

Purpose

For Studies in India and Abroad

Eligibility

Studies in India: 

Graduation courses/Colleges under Universities approved by UGC. Other courses leading to diploma / degree etc. conducted by colleges / universities approved by UGC / Govt. / AICTE / AIBMS / ICMR etc.

Studies Abroad : 

Job oriented Prof./Technical / PG courses/ Post Graduation: - MCA, MBA, MS etc

Age:

Student should be Indian national, have secured admission by Entrance test / Merit bases selection.

Maximum amountIn India : 

Rs. 10.00 lac

Abroad : 

Rs. 20.00 lac

Security:

Up to Rs. 4.00 lac - Clean

Guarantor:

Above Rs.4.00 lac to Rs.7.50 lac 

Satisfactory third party Guarantee:

Above Rs. 7.50 lac

Value of collateral security after providing requisite margin as below should be equal to the quantum of finance plus 2 acceptable guarantor.

Computers purchased out of loan be hypothecated.

Margin:

Up to Rs. 4.00 lac 

 Nil

Above Rs.4.00 lac 

5% for studies in India 

15% for studies abroad

Deduction Limit:

N.A.

Rate of Interest:

Loans up to Rs. 4.00 lac (Base Rate + 2.50%) = 12.90%

Loans above Rs. 4.00 lac & upto 7.50 lac (Base Rate + 2.00%) = 12.40%

Loans above Rs.7.50 lac (Base Rate + 1.25%)=11.65%

Simple interest during moratorium period, there after compounded monthly

1% interest concession may be provided to the loanees if the interest is serviced regularly as and when applied during the study period when repayment holiday is specified for interest/ repayment under the scheme. Interest concession is available only for moratorium period.

Repayment:

EMI - 60 Months (Loan plus int.accrued together)

Moratorium: 

Course Period + 1 year OR 6 months after getting job whichever is earlier

Processing Fee:

Nil

Insurance:

N.A.

Others:

Loan will be granted to student with parent as Co-borrower/s

Loan will be disbursed in stages as per requirement directly to Institute / College.

Other Facility:

Student can apply education loan in online mode through our website. This Facility is presently available only in selected 75 branches (shortly it will be increased to handsome number)

Interest subsidy on education loans to students from economically weaker sections.

Central Scheme to provide Interest Subsidy for the period of moratorium on Educational Loans taken by students from economically weaker sections.

Government of India has approved a Scheme to provide full interest subsidy during the period of moratorium on loans taken by students belonging to economically weaker sections under the Educational Loan Scheme, for pursuing any of the approved courses of studies in technical and professional streams, from recognized institutions in India.

We are providing hereunder guidelines of the scheme:-

1.Applicability of the scheme:

The Scheme would be applicable only for studies in recognized technical and professional courses in India. The interest subsidy shall be linked with the existing Model Educational Loan Scheme of our bank and restricted to students enrolled in recognized technical/ professional courses (after Class XII) in India in Educational Institutions established by Acts of Parliament, other Institutions recognized by the concerned Statutory Bodies, Indian Institutes of Management (IIMs) and other institutions set up by the Central/ State Government.

2.Eligibility for Interest Subsidy:

The interest subsidy under the Scheme shall be available to the eligible students only once, either for the first undergraduate degree course or the post graduate degrees/diplomas in India. Interest subsidy shall, however, be admissible for integrated courses (graduate + post graduate).

Interest Subsidy under this scheme shall not be available to those students who discontinue the course midstream, or for those who are expelled from the Institutions on disciplinary or academic grounds. However, the interest subsidy will be available if the discontinuation was due to medical grounds for which necessary documentation to the satisfaction of the Head of educational institution will have to be given.

3.Subsidy Applicable Period:

Under the Scheme, interest payable by the student belonging to economically weaker section for availing of the Educational Loan for Technical/ Professional courses in India for the period of moratorium i.e., course period, plus one year or six months after getting job, whichever is earlier, as prescribed under Model Educational Loan Scheme of the bank, shall be borne by the Government of India. After the period of moratorium is over, the interest on the outstanding loan amount shall be paid by the student, in accordance with the provisions of the existing Model Educational Loan Scheme and as may be amended from time to time.

4.Applicable Academic Year:

The Scheme shall be applicable from the academic year 2009-10 starting 1st April, 2009. The loan amount taken starting from the Academic year 2009-10 (irrespective of the date of sanction) shall only be covered under the scheme of Interest subsidy.

Note: Interest on any amount disbursed for courses starting before the academic year 2009-10 would not be considered for subsidy.

5.Income Limit:

The benefits under the Scheme would be applicable to those students belonging to economically weaker sections, with an annual gross parental/ family income upper limit of Rs. 4.5 lac per year (from all sources). The scheme is intended to cater to the needs of students belonging to economically weaker sections with the above prescribed upper parental gross income limit of the family from all sources which is based on economic index and not on social background.

6.Competent Authority for Issuing Income Certificate:

Income proof shall be required from the students from such public authorities as are authorized by the State Governments for certification of income status for this scheme, including Central and State Sector Schemes.

For the State of Maharashtra, the Tahsildar is the competent authority for issuing the income certificate.

For other States, student borrowers are requested to approach our branch officials for knowing the details of competent authority who are authorized to issue such income certificate.

7.Others

Interest subsidy should be claimed under the scheme only if subsidy was not being claimed against any other State Government scheme.

All the eligible student borrowers are requested to visit the concerned branches (where they have availed education loan) for enrolling to avail Interest subsidy during moratorium period under the scheme. It is requested to go through the above contents carefully before approaching the branch officials for submitting the application for interest subsidy claim. The scheme is applicable only for those who have availed educational loan on or subsequent to 01.04.2009.

Steps to be followed by the student borrowers for availing the benefit of interest subsidy under the scheme:-

Procure income certificate as discussed in the point no. 5 as above.

Ensure having taken all requisite certificates and approach the respective branch.

Submit the application for claiming subsidy (Application/ Agreement will be supplied by the branch officials)

To Apply For Education Loan Click Here