Bank of Maharashtra provides ample education loan schemes to aspiring students who wish to pursue higher education in India and abroad. You can avail up to INR 10 lakhs to study in India and up to INR 20 lakhs to study abroad under its Model Education Loan Scheme. The Bank of Maharashtra education loan interest rates start from 9.45% p.a. The bank usually takes 10-15 days to approve and sanction the loan.
The bank is known for its quick loan processing and simplified disbursement process. To know more about the details of Bank of Maharashtra education loan processing time and the steps involved from application to disbursement, continue reading this blog.
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What is the Bank of Maharashtra Education Loan Processing Time?
The Bank of Maharashtra education loan processing time is between 10-15 days. During this time, the bank verifies the documents submitted by the applicant and ascertains important information like the loan requirement of the applicant, repayment tenure, interest rates, margin money, moratorium period, and other important terms and conditions.
The loan processing time depends on various factors like-
- Completeness of Bank of Maharashtra education loan application form
- Document submission
- Creditworthiness of the applicant/ co-applicant
Once the applicant submits the application form and attaches all the required documents with bonafide certificates, the bank will initiate the education loan processing. After 10-15 days, when the documents are verified, the education loan is sanctioned within 24-48 hours.
The loan is then finally disbursed to the university’s account once the applicant provides the details like amount, date, and mode of disbursement.
Steps Involved in Loan Processing
The loan processing time begins once the applicant submits the loan application form with all the required documents related to KYC, academics, income, collateral and others. Then comes the verification process and the loan is approved on fulfillment of eligibility criteria and successful document verification. Let’s look at the steps involved in the loan processing process.
Filling Application Form and Documents Submission
The first step is to fill out the application form. This can be done by either visiting the nearest Bank of Maharashtra branch or online at the official website of the Bank of Maharashtra. You can also apply easily through the Vidya Lakshmi Portal.
- Register yourself by following the simple steps for the Vidya Lakshmi education loan registration process.
- Login using your credentials and search for the Bank of Maharashtra Model Education Loan Scheme.
- Click on Apply Now.
- Fill out the application form and attach the necessary documents as asked.
Also Read: Did you know the education loan interest rate fluctuates in line with Inflation? Check this blog and understand Inflation and its Effects on Education Loan
Documents Verification
Once you have submitted the required documents for an education loan, the bank will initiate the processing of your loan. It will verify your details, academic background, income background of the co-applicant/ guarantor, creditworthiness, required loan amount, and other important details.
Make sure to submit authentic documents without any forgery. Submitting fake documents is one of the reasons for education loan rejection. The timely submission of documents enables the bank to process and sanction your loan faster.
Loan Approval and Sanction
Once all the documents are successfully verified and the applicant fulfills the eligibility criteria, then the Bank of Maharashtra education loan is approved. The bank promises to finance the applicant’s higher education and releases the education loan sanction letter.
The document contains all the necessary details about the type of loan, amount funded, interest rates, repayment period, moratorium period, and other important terms and conditions. You are required to go through the same and sign it on the agreement.
Loan Disbursement
This is the final step of the education loan process. In this step, the bank will disburse the funds directly to the university’s account to pay for your tuition fees and accommodation expenses. The applicant needs to inform the bank about the amount, date, and mode of disbursement and also provide the necessary documents to support the same.
For example- after the first disbursement, the applicant must show the semester 1 result grade sheet as proof of completion. Then only the bank will initiate the fund transfer for Semester 2.
Also Read: If you are planning to avail of an education loan from PNB Bank, check out our blog to understand the PNB Bank Education Loan Disbursement Process.
FAQs on Bank of Maharashtra Education Loan Processing Time
Bank of Maharashtra usually takes 10-15 days to process the study abroad education loan. Once the document verification process is completed, the loan is sanctioned and disbursed in 24-48 hours.
Several factors can affect the education loan processing time and the accuracy and completeness of your application is one of them. Besides, document verification processes, the creditworthiness of applicants, and mode of disbursement etc.
It usually takes 24-48 hours to disburse the education loan after submission of the application, required documents, and signing the sanction letter.
0.50 % of the loan application is charged as an upfront fee in case of considering a loan for studies abroad. However, the fees are refunded if the borrower takes the loan. There’s zero processing fee for education loans to study in India.
Absolutely. The Bank of Maharashtra offers attractive interest rates starting from 9.45% p.a on education loans of up to INR 10 lakhs to study in India and up to INR 20 lakhs to study abroad. Besides, applicants can avail loans at low EMIs, track loans online, and benefit from simplified disbursement process.
This was all about the Bank of Maharashtra education loan processing time. Usually, the bank takes 10-15 days to verify and process the education loan. However, many factors can smoothen as well as delay the process. Make sure to fill in the application form correctly and submit the documents on time.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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