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When it comes to funding your higher studies, the right lender can make all the difference between a smooth journey and months of paperwork. Propelld is known for its student-friendly, collateral-free education loans with flexible repayment, while the Bank of Maharashtra offers traditional banking trust and steady interest rates backed by government support. This comparison highlights the key differences in features, benefits, and eligibility to help students identify which option better suits their academic and financial needs.
Looking for quick approval and 100% collateral-free financing? Apply with Propelld now!
Propelld vs Bank of Maharashtra: Comparison
Don’t forget to check the co-applicant criteria. Our guide on Who Can Be a Co-Applicant for an Education Loan breaks down the eligibility and documents you’ll need.
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Propelld vs Bank of Maharashtra Education Loan Comparison
This section presents a deep-dive comparison between Propelld and the Bank of Maharashtra for education loan offerings. It analyses crucial factors like interest rates, loan amounts, processing fees, and security requirements to highlight the distinct benefits of each option.
Loan Amount & Coverage
The maximum loan amount offered is a critical differentiator, particularly for students pursuing overseas education.
Propelld provides a distinct advantage with high-ticket funding, offering up to ₹1 Crore for abroad studies and up to ₹40 Lakhs for domestic courses. Crucially, the coverage for abroad loans is comprehensive, including tuition fees, living expenses, travel, health insurance, and visa/exam fees, offering complete peace of mind.
In contrast, the Bank of Maharashtra education loan under its Model Scheme typically caps at ₹20 Lakhs for studies abroad and ₹10 Lakhs for domestic education. While higher amounts may be considered on a case-to-case basis and through certain special schemes, the standard limit is significantly lower than Propelld's.
Interest Rates & Transparency
Understanding Propelld vs Bank of Maharashtra interest rate structures is vital.
Bank of Maharashtra offers competitive interest rates, often starting around 7.10% p.a. to 11.30% p.a. The rates are RLLR (Repo Linked Lending Rate) based, meaning they fluctuate with RBI rate changes.
While the initial rate may seem lower, it's crucial to note that simple interest is typically applied during the moratorium period, and the final rate can be concession-based (e.g., for girl students or existing customers).
Propelld’s interest rates start from 12% p.a. and are profile-based, determined by factors like the course, college, country, and academic record, thereby rewarding good academics.
Unlike many lenders, Propelld adheres to open APR (Annual Percentage Rate) disclosure, which is the all-inclusive cost of the loan (including fees) per year, ensuring full transparency with no hidden charges.
Collateral & Margin Money Rules
The requirements for security and the applicant's upfront contribution are where the providers differ most significantly, heavily influencing Propelld vs Bank of Maharashtra collateral requirements and Propelld vs Bank of Maharashtra margin money rules.
Propelld’s model is built on being student-friendly:
1. Collateral: Offers collateral-free education loans. You do not need to pledge property, fixed deposits, or assets, even for loans up to ₹1 Crore for abroad studies.
2. Margin Money: Has 0% margin money rules, financing up to 100% of the education expenses.
Bank of Maharashtra, being a public sector bank, follows scheme-based collateral rules:
1. Collateral: No collateral is required for loans up to ₹7.5 Lakhs. For amounts above this, collateral equivalent to the quantum of finance is necessary.
2. Margin Money: Nil up to ₹4 Lakhs. Above ₹4 Lakhs, the margin is typically 5% for studies in India and 15% for studies abroad, requiring the student's family to self-finance a portion upfront.
Approval Process & Timelines
Efficiency is key when dealing with time-sensitive admissions. This section contrasts the Propelld vs Bank of Maharashtra loan processing time.
Propelld follows a digital-first, paperless process, making it much faster:
1. Domestic Loans: Sanction in 48–72 hours.
2. Abroad Loans: Approval in 7 working days.
3. Approval Rate: Propelld approves a high percentage of applications (9/10) due to its flexible underwriting that considers the student’s profile and future earnings potential, even if the co-applicant’s CIBIL is weak. Rejection or gap in application is informed within 24 hours.
Bank of Maharashtra’s process, while digitised via the PM Vidya Lakshmi portal, still typically involves more traditional, branch-level verification:
4. Processing Time: Can take 7-15 working days or longer for sanction, depending on the scheme and the complexity of collateral documentation (if required).
Repayment Flexibility
Propelld vs Bank of Maharashtra repayment options offer different levels of customisation.
Propelld provides significant flexibility:
1. Moratorium: Offers a moratorium during study plus a grace period (especially for long courses like MBBS).
2. Customisation: Options include paying simple interest during study or a partial interest payment option for abroad loans.
3. Prepayment: Prepayment is easy, and foreclosure charges, while mentioned in the agreement, are often waived in special cases like medical emergencies or financial distress.
Bank of Maharashtra offers a standardised structure:
1. Moratorium: Course period + 1 year (or 6 months after securing a job). Simple interest applies during this period.
2. Tenure: Maximum repayment period of 15 years (excluding moratorium).
3. Prepayment: No prepayment penalty (foreclosure charges are Nil).
Support & Experience
Propelld operates with a digital-first approach, providing a dedicated SPOC (Single Point of Contact) and a digital dashboard for tracking the complete application and disbursal process. This ensures maximum visibility and support, with all queries responded to within 24 working hours.
Bank of Maharashtra provides support through its extensive branch network and centralised customer care. While personal interaction is a strength, the process relies more on traditional banking channels.
Planning to study overseas but worried about finances? Don’t miss our detailed guide on how to get an education loan for abroad studies in 2024.
Minimal Docs, Maximum Approval - Apply Now!
Who Should Choose Propelld vs Bank of Maharashtra?
Choosing the right lender hinges entirely on your individual profile and needs.
Choose Propelld If:
1. You need high loan amounts: Your requirement is above the typical ₹20 Lakh limit, especially for high-cost abroad education loans.
2. You cannot offer collateral: You lack suitable property or assets to pledge, or simply prefer a collateral-free loan up to ₹1 Crore.
3. You need quick approval: Your admission deadline is fast approaching, and you need sanction and disbursal in days, not weeks.
4. You have a weak co-applicant profile: Propelld's flexible underwriting prioritises the student's academic profile and future earnings over strict co-applicant financial history.
Choose Bank of Maharashtra If:
1. Your loan requirement is low: You require under ₹7.5 Lakhs, making you eligible for the collateral-free scheme with a lower interest rate.
2. You qualify for government subsidies: You are eligible for interest subsidy schemes like CSIS (Central Scheme for Interest Subsidy) or PM-Vidyalaxmi, which are generally routed through public sector banks.
3. You already have a banking relationship: You are an existing customer (e.g., Housing Loan borrower), qualifying you for potential interest rate concessions (e.g., 0.50% concession).
Both Propelld and the Bank of Maharashtra offer viable education loan options, but they cater to fundamentally different needs.
If your ambition involves high-value domestic or abroad education loans, demands speed, and you prefer an easier, collateral-free process, Propelld’s tailored, flexible financing is the superior choice.
Ready to start your education journey? Apply with Propelld today
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