Bank of Maharashtra Education Loan Disbursement: Process, Steps, Documents

Disbursement is a critical phase in the loan process, as any delay can result in issues such as postponed tuition fee payments and more. Therefore, it is essential to have a comprehensive understanding of the disbursement process. Let's delve into each aspect of the disbursement process of the Bank of Maharashtra Education Loan process in detail to ensure a smooth experience.

Overview of Bank of Maharashtra

It is a public sector bank headquartered in Pune, with over 30 million customers availing its services from more than 2,200 branches nationwide. In the fiscal year 2022-23, Bank of Maharashtra demonstrated a remarkable 126% growth in profitability, leading among other public sector banks. For the year 2023, its net income is approximately INR 2,600 Cr. 

Features of Education Loan from Bank of Maharashtra

Bank of Maharashtra is one of the prominent banks in India to take education loans with reasonable terms. The bank offers several education loan schemes but we will be covering one particular abroad education loan scheme known as the Model Education Loan Scheme. Below is a table that shows all its features. 

Bank of Maharashtra Education Loan Disbursement Process 

The disbursement process followed by the Bank of Maharashtra is very efficient. The different steps that take place in this process are as follows - 

Disbursal application and documentation

The disbursement process of Bank of Maharashtra education loan commences at the initial application phase. In this application process, you need to fill out a disbursal form. In addition to the application, you need to provide a few documents to verify your identity, address, income, and creditworthiness. The bank may collect these documents during the loan processing stage but it may also ask for some of these documents again during disbursement. Financial proof is one such example. 

Verification and Disbursement Letter 

The bank does a final check on the documents you provided earlier. They might use a process called Original Seen and Verified (OSV) to make sure everything is correct. After finishing the check, the bank gives you a letter saying how much loan money you'll get. Before you get the money, you have to sign the disbursement letter.

Final Transfer

For the Bank of Maharashtra, the tuition fees are directly disbursed to the institution. The bank provides the required amount to the institute, whether it's for an annual, semester-wise, or full payment. If you choose on-campus accommodation, the expense will also be transferred directly to the university. On the other hand, if you opt for off-campus living, the money is transferred to your bank account. Public sector banks typically offer a FOREX Card, allowing for the transfer of some initial living expenses. This card can cover costs until you set up a new foreign bank account.
 

Documents Required for Education Loan Disbursement

After loan sanction, certain documents must be submitted for the disbursement process. These documents act as the final evidence that your admission is confirmed and you are ready to travel abroad for your studies. The required documents for loan disbursement are as follows:

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  University acceptance letter or admission letter
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  Copy of Visa approval letter
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  Copy of Air ticket
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  Accommodation details
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  Health and travel insurance documents.

Advantages of Bank of Maharashtra Education Loan

Here are a few advantages you can enjoy when taking an education loan for studying abroad through Bank of Maharashtra 

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  Bank of Maharashtra provides education loans with lower interest rates than many private banks and NBFCs.
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  Concessions are available for female students, meritorious students, and those who regularly pay interest during the moratorium period.
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  The processing fee is refunded upon the student's first disbursement.
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  Eligible students can benefit from interest subsidies during their loan repayment.
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  Tax benefits under Section 80E are accessible for students repaying education loan interest.

Simple Tips for Smooth Disbursement

There are a few tips that you can keep in mind to ensure a smooth disbursement process. They are -

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  Mentioning all costs - When filling out the loan application form, be sure to include the total loan amount, covering all associated costs. This proactive approach helps prevent discrepancies later in the process.
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  Use of third-party applications - Some universities utilize third-party applications such as Flywire for handling tuition fees. If you have any special requests or considerations regarding these applications, it's essential to communicate them to the bank in a timely manner.

Read also

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  Eligibility requirements for education loans
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  Government interest subsidy schemes
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  Education loans to study abroad

Now that you understand the Bank of Maharashtra education loan disbursement process, you can proceed to apply for an education loan and initiate your process. Although the disbursement process is relatively straightforward, there may be a few challenges that could arise. If you wish to avoid any potential issues, you can seek assistance from GyanDhan. Our education loan counselors will handle all the work for you, and it comes at no cost. All you need to do is check your eligibility now.
 

Frequently Asked Questions