Several banks and NBFCs offer tailored education loans that help students cover tuition fees, living expenses, and even travel costs for international education. In this guide, we’ll break down the top education loan in Maharashtra, highlight loan benefits, and compare the best schemes and interest rates.
At A Glance
- Maharashtra's Maha Scholar Scheme offers collateral-free loans and concessions for students in premier institutions.
- Public sector banks provide some of the lowest interest rates, starting at 8.3%, making loans affordable.
- Many banks offer unsecured loans of up to ₹7.5 lakh, making it easier for middle-class students to access funds.
- Education loans offer tax deductions and moratorium periods, helping students manage repayments after graduation.
Maharashtra Student Loan Programs: Best State Schemes
In Maharashtra, dedicated state-level initiatives have been designed to help students access higher education by reducing financial hurdles and enabling merit-based opportunities.
These schemes create a multi-tiered support framework, ranging from mainstream, structured bank loans for high-end courses to concessional loans. It is targeted at vulnerable communities, thereby expanding access to higher education across Maharashtra.
1. Bank of Maharashtra Schemes
The Bank of Maharashtra offers the Maha Scholar Education Loan Scheme for students admitted to “premier institutions” in India (and abroad), as well as the Model Education Loan Scheme for recognised courses in India/abroad.
Eligibility
Indian national students with admission in full-time recognised degree/diploma courses through merit-based selection.
Loan quantum & security
Up to ₹4 lakh in many cases without margin for studies in India; above this, margin applies (e.g., 5% for India, 15% for abroad) in the Model scheme.
For the Maha Scholar scheme, up to 100% financing is available, and for premier institutions, no collateral or margin is required in some cases.
Interest-rate & concessions
Concessions are available: e.g., 0.50% interest rebate for girl students, 0.25% for meritorious students, 0.50% for existing housing-loan borrowers.
Approximate rates: For studies in India/abroad under these schemes, interest rates vary around 9–11% per annum, depending on the amount and security.
Repayment terms
Moratorium: course period + 1 year (in many cases) before repayments start.
Maximum repayment tenure: up to 15 years (180 EMIs) after a moratorium, for specific schemes.
Coverage
Tuition fees, hostel fees, cost of books, laptop/computer cost, etc.
This scheme provides solid support for students in Maharashtra, making it relevant for employee-benefit programs or corporate assistance schemes that support dependents pursuing higher education.
2. Other State‑Bank / Regional Bank Education Loans
Maharashtra Gramin Bank offers education loans to students in India or abroad, with loan limits of up to ₹10 lakh (for studies in India) and ₹20 lakh (for studies abroad). For amounts up to ₹4 lakh, there is no margin. Additionally, margins apply (5% in India and 15% abroad) to these offerings.
Even regional institutions follow well‑defined norms and can be relevant for students resident in the state to have the top education loan lenders Maharashtra.
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Education Loan Interest Rates in Maharashtra (2025)
When applying for an education loan, interest rates are a critical factor. Here's a quick comparison of education loan interest rates from leading banks in Maharashtra for both domestic and international studies:
|
Bank Name
|
Interest Rate for Domestic Studies
|
Interest Rate for Abroad Studies
|
|
State Bank of India
|
8.30% to 10.7%
|
10.15% to 12.5%
|
|
Axis Bank
|
10.5% to 15%
|
9.99% to 12.5%
|
|
ICICI Bank
|
10.5% to 11%
|
10.25% to 12.5%
|
|
HDFC Credila
|
10.25% to 12.75%
|
10.25% to 12.75%
|
|
Bank of Maharashtra
|
8.85% to 14%
|
9.7% fixed
|
How to Apply for an Education Loan in Maharashtra?
Applying for an education loan in Maharashtra is a straightforward process. However, it is essential to ensure that your documents are in order.
Here's a quick step-by-step process:
Select a bank or NBFC based on your loan needs (domestic or international).
Complete the loan application form, either online or at a bank branch.
Prepare documents such as proof of admission, identification, academic records, and details of the co-applicant.
Submit collateral documents if you are applying for a secured loan.
Once the bank verifies your documents, the loan will be approved, and funds will be disbursed directly to the institution or to your account.
Planning to take an instant loan for higher studies? Ensure you are familiar with the co-applicant rules first. Our guide on 'Who Can Be a Co-Applicant for an Education Loan' breaks down the eligibility and documents required.
What Are the Education Loan Benefits Maharashtra?
Education loans in Maharashtra offer numerous advantages that make pursuing higher education more feasible, both in India and abroad.
1. Affordable Financing for Higher Education
Most education loans cover not only tuition fees but also other essential costs, such as examination fees, hostel accommodation, travel expenses, and study materials. This comprehensive coverage ensures that students are not burdened with additional financial expenses.
2. Subsidized Interest Rates
Maharashtra offers some of the most competitive interest rates in the country. Public sector banks, such as SBI, provide interest rates as low as 8.3%, which is significantly lower than what private lenders typically offer.
3. Collateral-Free Loans for Small Amounts
Banks such as Axis Bank, ICICI, and IDFC First offer unsecured loans (without collateral) for smaller amounts, typically up to ₹7.5 lakh. This feature is beneficial for students from middle-class families.
4. Tax Benefits
Under Section 80E of the Income Tax Act, borrowers can claim tax deductions on the interest paid towards education loans. This makes the loan more affordable over the long term.
5. Repayment Flexibility
Banks like SBI and IDFC First Bank offer deferred repayment (moratorium) periods, allowing students to start repaying the loan only after completing their course and securing employment.
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Is an Education Loan Risky? Here's What Students Think!
Taking an education loan for higher studies, especially for a program that includes international exposure, can feel risky. But with the right approach and planning, it can be a worthwhile investment in your future.
Reddit User in r/mumbai shared:
"I’m considering a one-year Master’s program at a well-known business school in Mumbai. The program includes a term in Milan, and the cost is around ₹20 lakh. However, I’m unsure about taking such a big loan, especially since I may get a scholarship that could reduce the amount. Any advice on whether an education loan is worth it?"
Insight: Education loans for higher studies, especially those involving international experiences, can seem daunting. However, with the proper planning, loans can be managed effectively. For students pursuing programs with scholarships or specific career paths, an education loan can be a strategic move to boost future earning potential.
What do we infer from the above case?
A ₹20 lakh loan might seem risky, but it could be manageable if you plan your finances well and look for lower interest rates or scholarships.
If you get a scholarship, it reduces the loan burden and makes the loan more manageable. Be sure to check whether your scholarship can be applied directly to the loan amount.
Consider the potential career growth and salary boost after completing a prestigious program. The ROI on such programs, especially with international exposure, can be high.
When taking a loan for such a program, ensure you have a solid repayment plan and understand the terms. It’s also wise to consult with the bank about the loan amount, interest rates, and repayment flexibility. Always balance your financial capability and the long-term career benefits of the program.
The top education loan in Maharashtra and schemes are designed to help students achieve their dreams of higher education, both within India and abroad. With several lenders offering good rates, students have ample options to choose from. Be sure to carefully assess your options, understand all the terms, and plan for the future.
Propelld offers personalised education loans that fit your unique needs. Propelld offers fast digital approvals, study loans of up to ₹50 lakhs, and the ease of zero-collateral requirements.
Take the first step towards your future—Apply with Propelld today!
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