Maharashtra Gramin Bank Education Loan

The purpose of MGB education loan is to provide financial aid to students pursuing higher education in recognised institutions and who have secured admission through merit-based selection procedure.

Eligibility Criteria for Maharashtra Gramin Bank Education Loan

The following is the list of eligibility criteria that must be fulfilled by the applicant to avail themselves of MGB education loan:

1. Indian National

1. Minor student represented by guardian or parent

1. Admission secured by the student at recognised institution either in India or abroad through merit-based selection process

1. Loan offered in joint names of the student and parent or guardian

Loan Amount Limits for Maharashtra Gramin Bank Education Loan

The following are details regarding limit of loan amount under MGB education loan:

1. Up to Rs.10 lakh in India

1. Up to Rs.20 lakh abroad

Note: The limit is subject to the courses applied for by the candidate.

Margin Requirements for MGB Education Loan

The following are details regarding margin of loan amount under MGB education loan:

1. Up to Rs.4 lakh: Nil

1. Above Rs.4 lakh (Studies in India): 5.00%

1. Studies outside India: 15%

Security Against Maharashtra Gramin Bank Education Loan

The following are details regarding security that can be provided against MGB education loan:

Loan up to Rs.4 lakh:

1. Parent will be joint borrower, and no security required

1. For installment payment, future income of the student will be assigned as security

Loan above Rs.4 lakh and up to Rs.7.50 lakh:

1. Parent will be joint borrower

1. Third party guaranter

1. Future income of the student will be assigned for installment payment

Note: Third party must have net worth to cover the loan amount or sufficient value of equitable mortgage of landed property

Loan above Rs.7.50 lakh:

1. Parent will be joint borrower

1. Future income of the student will be assigned for installment payment

1. Equitable Mortgage (EM) of landed property that would cover at least 150% of loan amount

Repayment Tenure for Maharashtra Gramin Bank Education Loan

The following are details regarding repayment duration of MGB education loan:

1. Loan amount of Rs.7.50 lakh: Maximum 15 years

1. Loan amount above Rs.5 lakh: Maximum 10 years

Moratorium Period of Maharashtra Gramin Bank Education Loan

The moratorium period of MGB education loan is course period and one year or six months after getting job (whichever is earlier).

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