How to Apply for Maulana Azad Education Loan in 2024
A student has to incur numerous expenses when covering the cost of their education. Failing to cover these expenses often leads students to drop out of their college or course. This is why the government of India has launched multiple schemes that can extend financial aid to student's education. One of those popular schemes is the Maulana Azad Education Loan.
It is a government-led scheme that was launched in 2003 by the Ministry of Minority Affairs, especially for minority students. The government, under this scheme, offers an amount of up to ₹7.5 lakhs to these aspiring students. Maulana Azad minority loan scheme is offered under Maulana Azad Shaikshanik Karz Yojana and these students are obliged to pay back the loan amount under a minimal interest rate of 3%. Here is how you can check your eligibility and get this loan.
Features of Maulana Azad Education Loan
The Maulana Azad loan scheme has established an economic board to support minorities in entrepreneurship and trade in sectors such as small-scale agriculture, business, transportation, and industrial. Providing for the welfare and economic advancement of the state's economically disadvantaged minority population is the primary goal of the Maulana Azad Loan Scheme for Minorities.
Students are eligible to receive the Maulana Azad Education loan amount of up to 5 lakhs if they are the single candidate in the family who is taking the Maulana Azad Education Loan. However, the loan amount would increase to 7.5 lakhs if two candidates of the same family are applying for a similar loan under this scheme. Here, you may find all the loan specifics related to this plan:
Eligibility of Maulana Azad Education Loan
Every student loan comes with a set of eligibility criteria. Maulana Azad Education Loan is no less! Here is an outline of important pointers necessary to get fulfilled to be eligible for this education loan:
- Applicants must belong to minority communities. These include Muslim, Sikh, Christian, Parsi, Buddhist, and Jain.
- Applicants should belong to India and be residents of Maharashtra.
- The age limit of applicants should be between 16 to 32 years.
- Applicants must be students of an institute or college that is recognized/approved by the Central Government, State Government, AICTE, UGC, or ISC.
- The eligible courses for the loan include technical and professional courses such as B.E., B.Tech., B.Pharma., M.Pharma, M.Tech, MBA, and MCA, among others.
- The annual income of the family of the applicant should be less than ₹2,50,000.
A few courses, such as B.ed, B.Com, B.A., B.Sc, and M.Sc, are not eligible under this scheme.
Benefits of Maulana Azad Education Loan
From easy expense coverage to flexible loan amounts, Maulana Azad Education Loan gives numerous advantages to selected candidates. Some of the prime advantages of the Maulana Azad Minority Loan scheme includes:
- The foundation provides education loans up to ₹5 lakh under this initiative to Maharashtra residents who are students from minority communities, including Muslims, Sikhs, Christians, Buddhists, Jainites, and Parsis.
- There is very little interest rate for this education loan scheme, i.e., 3% per annum with a 5-year payback period.
- If a student takes out an education loan, they will have to pay it back either six months after they graduate from college or after they find employment.
- Students enrolled in professional degree or diploma programs will be eligible for the Maulana Azad Education Loan.
Maulana Azad Education Loan Apply Online
If you are a minority student looking to pursue higher education and have limited finances, you can readily apply for this education loan through the Maulana Azad loan application form online. To apply, follow the steps below:
- Step 1: Commence the application process by visiting the official website of Maulana Azad Minorities Financial Development Corporation Limited.
- Step 2: Go through the ‘Scheme’ section through the top right tab of the dashboard.
- Step 3: Click on ‘Education Loan’ from the drop-down list and select ‘Maulana Azad Education Loan’.
- Step 4: Select the ‘Online Application for Education Loan’ tab and click on it.
- Step 5: A message or note will appear asking if you want to proceed with the application process. Click on “Yes” to proceed.
- Step 6: Now, click on the ‘New Registration’ tab. Fill in the details and necessary fields. Recheck the info that you have filled in and submit it by clicking on ‘Register’.
- Step 7: After registration, fill in the required details like uploading the documents as asked. Finally, submit to apply for the loan scheme.
To log in to your account, if you are already registered, you can fill in the valid credentials and log in successfully.
Maulana Azad Education Loan Documents List
Arranging documents for paperwork and the loan dispersal process may seem overwhelming. We have compiled a checklist for Maulana Azad loan documents necessary for an easy loan application process.
Basic Documents Requirements for Applicant
Below are the necessary documents for candidates applying for Maulana Azad Education Loan.
- KYC documents such as Aadhaar Card, PAN Card, and photocopies of Passbooks
- 10th, 12th, diploma and graduation mark sheets/certificates
- Minority certificate endorsed by the governing administration
- Domicile certificate/proof of residency: Voter ID Card, Ration Card, Driving license, or Passport
- Passport-size photographs
- Original and verified admission letter from the college/university
- The fee structure of course term
- Bonafide certificate record from recently completed school, college, or university
- Photocopy of the application form you applied to. You can get that from the portal.
- Copy of Freeship form to show in which category you have taken admission and which scholarship you are getting.
- NOC (Non-Objection Certificate) from your bank
If you are a female applicant, open a joint bank account with your father, mother, or guardian.
Basic Documents Requirements for Co-applicants
Below are the necessary documents for co-applicants/parents/guardians applying for Maulana Azad Education Loan.
- KYC documents like Aadhar Cards/PAN Cards
- Proof of address such as Driver's Licence, Ration Card or Passport
- A relationship certificate to justify your relation with the co-applicant. E.g., birth certificate, passport.
- Proof of income or profession
For business professionals
- Proof of business transactions of more than 1 year
- Proof of business number registered under the co-applicant name
- Photocopy of last 3-year balance sheet or profit and loss account
- Business Address Proof
For salaried employees
- Income certificate
- Latest Salary slip of at least 3 months
- Employer's ID card
- 3 years Income Tax Return (ITR) or form 16 A
Basic Documents Requirements for Guarantor
Mentioning Guarantor in the loan application form eases the loan process. Here is a list of mandatory documents for guarantors.
- KYC documents: Aadhar Cards/ PAN Cards.
- Proof of address such as Driver's Licence, Ration Card or Passport
- Proof of Income Tax return (ITR) in the last 3 years
- Salary slip of more than 3 months
Eligibility of Guarantor
There are numerous cases in which a loan gets rejected due to the ineligibility of a guarantor. Below mentioned are the parameters necessary to become a guarantor.
- Any individual, either a government/private salaried employee or Business/property holder.
- The age of the guarantor should not be more than 48 years
- An individual filing an Income Tax Return (ITR) of not less than 5 lakhs annually.
In the case of collateral pledging, the guarantor should be available to sign the loan documents.
Maulana Azad Education Loan Repayment Policy
Six months after finishing the course, the candidates are able to repay the loan. Before repaying the loan, the students might use this grace period to concentrate on landing a job or establishing themselves in their careers. The repayment policies of Maulana Azad Education Loan are student-friendly and follow the following process:
- Loan repayment starts after 6 months of course completion
- Total repayment tenure is of 5 years
- Unlike normal EMIs, repayment payments are made once every three months
Maulana Azad Education Loan Renewal
When necessary, you can renew your Maulana Azad Education Loan to fill your future and fund your educational expenses. The list of documents needed for renewal is as follows:
- Mark sheet from your institution or university's previous academic year (Passing Certificate)
- Bonafide certificate valid for the current school year
- Income certificate with a maximum amount of ₹8 lakhs
- Bank transaction proving that the final installment was received
- The Maulana Azad Education Loan Portal offers both the report and the application
Maulana Azad Education Loan Status
After submitting and approval of your loan application, you will obtain a sanction letter from Maulana Azad Corporation Ltd. Below are the steps that you should follow to get your loan amount disbursed.
- You are first required to submit three notarized documents. These documents are:
- Agreement authorized and notarized by applicant, co-applicant, and guarantor under Maulana Azad Minorities Financial Development Corporation Ltd
- Notarized promissory note
- A stamp of ₹100 on the guarantee letter by the guarantor
- Sign twenty bank cheques. Write them to the Maulana Azad Minorities Financial Development Corporation Ltd. Girl candidates would require the signature of both persons in that joint account.
- A self-declaration form attesting that you will not close the bank account meant for loan disbursement. You will get your loan amount disbursed successfully.
Fund Your Educational Expenses with Propelld Loans
We understand that education expenses are extensive, but we don't believe that they should come between your future goals. We also recognize the complexities involved in the education loan application process. That is why we at Propelld offer tailored financing solutions that not only help you cover your education expenses but also eliminate those complexities. These solutions offer you numerous benefits, including:
- Expert Guidance: When you submit your application through us, one of our financial experts will review your details and recommend the best loan choice for you. We will also negotiate with a wide selection the lenders we have for better terms and circumstances.
- 100% Digital Process: Our all-digital process reduces the paperwork to ensure quick approval and faster disbursement.
- Moratorium: We will offer you access to education loans with a moratorium so that you pay smaller EMIs during your course.
- Study Now Pay Later: We encourage you to focus on your studies by taking the hassle of repaying during the course. You pay only after you complete the course.
Conclusion
A Maulana Azad Education Loan offers an easy and reliable way to cover all your educational expenses. The scheme plays a vital role in fulfilling the dreams of thousands of students to pursue their higher studies. The Maulana Azad government loan scheme forms an essential part of the financially challenged students that helps cover all the expenses involved in the education of such students.
The process of loan education, however, is an unorganized and hectic endeavor. With lesser knowledge of application, applicants like you face greater difficulties and might end up with the application form getting rejected. Propelld seeks to step up the education loan application process by providing the best financing options for applicants’ educational pursuits. Revolutionizing the dreams of millions, we go beyond checking the traditional CIBIL score of the applicant and bet on their learning capabilities.
Frequently Asked Questions
How can I become eligible for the Maulana Azad Education loan?
Fulfilling its criteria can make you eligible for the Maulana Azad education loan. The candidate must be a member of the minority community and a student of a degree or diploma course in any profession. The candidate ought to maintain a permanent place of abode in Maharashtra. Moreover, the applicant must be in the age bracket of 16 to 32.
What is the Maulana Azad Trust for Education?
The Maulana Azad Trust Foundation is a voluntary, non-political, and non-profit social service organization established to promote education in the educationally backward sections of society. The trust is solely and completely funded by the Indian government's Ministry of Minority Affairs.
How can I get selected for the Maulana Azad Scholarship?
You can be selected for the Maulana Azad scholarship by qualifying all the evaluation steps held during the process. The selection process includes evaluating factors such as academic excellence, financial and economic background, and one-on-one personal interviews. If you meet all the eligibility criteria and give exemplary performance in the selection process, then you will be considered for the scholarship.
Can I apply for the Maulana Azad Scholarship if I am currently a degree student?
Yes, you can apply for the Maulana Azad Scholarship if you are a degree student. This scholarship is widely available for both undergraduate and postgraduate degree courses students. Being administered by the Ministry of Minority Affairs under the Government of India, Maulana Azad Trust has already aided a lot of minority students in terms of covering education expenses.
