Bank of Maharashtra Personal Loan

• Bank of Maharashtra offers Personal Loans to applicants so that they can meet their personal expenses without having to worry about the necessary funds. The features of Bank of Maharashtra Personal Loan are mentioned below:
• Personal Loans from Bank of Maharashtra are offered to borrowers so that they can meet certain expenses of personal nature like medical expenses in case of hospitalization or a disease, expenses incurred on travelling or a trip undertaken either for vacations or for business, income tax liability which is supposed to be paid, expense for functions in the family like a marriage or house warming ceremony, etc. The loan is offered to individuals so that they can meet these expenses and other personal expense easily
• Bank of Maharashtra Personal Loans can be availed for up to 1.5 lakhs by borrowers for the expenses. Any further amount will not be granted as the bank limits the amount of loan offered by it.
• There is no need of maintaining a margin in case of a personal loan and the loans are issued  for the entire expense as deemed required by the applicant
• The Bank of Maharashtra Personal loan is to be repaid within 36 months. Thus the individual who avails the this loan needs to make sure that his EMI payments starts after availing the loan and is completed within 3 years. The individual may choose a lower tenure for Bank of Maharashtra Personal Loan like 1 or 2 years but the period to repay Loan cannot exceed 3 years.
• There is a provision of deduction which can be at max. 60% of the gross income including the proposed Equated Monthly Installment (EMI)
• One can easily calculate EMI for Bank of Maharashtra Personal Loan online
• There is a processing charge of 1% of the loan amount while availing this loan. The processing charge should not be lower than Rs.1000 which is the minimum processing charge. Subject to the minimum amount, the processing charge is calculated as 1% of the loan amount granted to the borrower. The processing charge is payable at the time of loan application and is usually non-refundable.
• No security or collateral required - A collateral or security is defined as an asset against which loan is issued and failure to make the repayment authorizes the bank to possess the asset and if required, sell it off to recover the outstanding loan amount. This scheme however pardons its customer from the security or collateral for issuing a loan. Henceforth, the Bank of Maharashtra personal loan is a hassle-free process.
• However, the bank calls for a guarantor at the time of Bank of Maharashtra loan application. A guarantor is someone who guarantees to pay the loan himself/herself if the applicant fails to repay the loan himself. Under the Bank of Maharashtra Personal Loan scheme, the bank requires a satisfactory guarantor who should undertake to guarantee the loan repayment.

This is a personal loan variant which is granted to help individuals purchase consumer durables and gadgets. The features of the loan are mentioned below and they include the following:

• This Bank of Maharashtra Personal loan is provided for the purchase of consumer durables which include computers, laptops or other electronic gadgets
• The loan can be availed by existing home loan borrowers who have availed  a home loan from the bank or individuals owning a corporate salary account with the bank who have a minimum work experience in the current organization of 2 years and have maintained banking relations with the bank for a minimum of 1 year
• If the individual owns a corporate salary account with the bank, the income requirement for the loan is a minimum of Rs.3 lakhs as per the last annual salary drawn. To maintain this, the last two years Income Tax Returns or a Form 16 from the employer is a mandatory requirement.
• If the applicant is an existing home loan borrower whether salaried, businessman or professional, the minimum income should be Rs.2.5 lakhs in the last year and for supporting this, the last two year’s Income Tax Returns or Form 16 from the employer is mandatory to be submitted subject to a sufficient disposable income
• Individuals aged  between 21 years and 60 years are eligible to apply for  Bank of Maharashtra personal loans
• A minimum amount of Rs.50, 000 and a maximum of Rs.1.5 lakhs can be availed as loan under this scheme
• If consumer goods are to be purchased using the loan, a minimum margin requirement of 25% is kept. For computers, laptops or other electronic gadgets, a minimum of 40% of the price of the gadget is taken as a margin
• From the current financial year, the loan is being issued at the Marginal Cost of funds based Lending Rate (MCLR) and for this loan, the corresponding rate of interest linked to this MCLR is MCLR + 5.0%
• A discount of 1% in the applicable rate of interest is provided to existing home loan borrowers from the bank or individuals holding a corporate salary account with the bank
• The period granted by the bank for repaying the Bank of Maharashtra  loan is a maximum of 60 months or 5 years
• The deduction should not exceed 60% of the gross income including the EMI payable under the loan scheme
• A processing fee is payable for the loan which is 0.50% of the loan amount subject to a minimum of Rs.500
• Hypothecation of the consumer durable purchased using the Bank of Maharashtra loan would be required as security
• In addition to this security, one guarantor who should be acceptable to the bank would also be required.

This is a scheme of personal loan which is available to salary earners or individuals who are employed. The features of the loan are as follows:

• The loan can be utilized for meeting the personal needs of individuals who are earning a salary
• Eligibility which is required for personal loans state that individuals who are salaried with a salary account with the bank can avail of the loan. The individual should be in a permanent employment with a corporate, mid-corporate, central government, state government or a co-operative society for at least 2 years. Moreover, the minimum monthly take home salary of the applicant should be Rs.6000 which would be determined based on the average of the last 6 month’s salary
• The personal loan requests would be offered as an overdraft facility in the existing savings account of the applicant
• The existing loan available will be 50% of one month’s salary or Rs.25, 000 whichever is lower
• A margin is maintained by the bank which is generally limited to 25% and may vary from case to case
• The bank now lends funds based on their marginal cost of fund base lending rate or MCLR in short. The current proposed Bank of Maharashtra Personal Loan interest rates linked to the MCLR for this loan scheme stands at MCLR + 4% = 12.75% onwards
• This is a unsecured loan and it doesn’t require any security/collateral
• The amount eligible for the loan would be decided based on the applicant’s salary over the last 6 months as on the date of availing the loan, the repayment obligation of the applicant and the regular credit of the applicant’s salary
• Account holders that currently operate account with the bank can also apply for a Bank of Maharashtra Personal Loan
• If the take home pay of the applicant changes, the limit of loan available can also be adjusted
• If the overdraft limit is not availed, interest is charged on the credit balance of the account. If the limit is availed, interest is charged on the debit balance on a monthly basis
• The employer of the applicant should be duly informed about the loan availed by the applicant

A Bank of Maharashtra Pension Loan, this loan is available for pensioners. The features of the Bank of Maharashtra Pension Loan are:

• Pensioners can apply for this loan for meeting their personal expenses
• The age of the applicant should not be more than 73 years as on the date of application and 77 years as on the date of maturity
• For the bank’s staff pensioners, the Bank of Maharashtra Personal loan would be equal to 18 months’ pension subject to Rs.6 lakhs for ages up to 65 years, Rs.4.5 lakhs for ages up to 70 years and Rs.3 lakhs for ages up to 73 years.
• For other pensioners, the Bank of Maharashtra Personal loan is 18 months’ pension subject to a maximum of Rs.4 lakhs for ages up to 65 years, Rs.3 lakhs for ages up to 70 years and Rs.2 lakhs for ages up to 73 years
• This is a clean loan which requires no security
• A guarantor is required for the loan who would be a person entitled to family pension or in the absence of one any suitable guarantor acceptable to the bank
• No margin is required for Bank of Maharashtra personal loan.
• The deduction limit for monthly pensions up to Rs.12, 500 is 40%. For pension exceeding Rs.12, 500, the deduction limit is 50%
• The loan should be repaid within a maximum period of 60 months or till the individual reaches 77 years of age whichever is earlier
• A processing fee equal to 0.50% of the loan amount with a minimum of Rs.500 would be payable
• Pensioners who are aged up to 67 years can avail the loan multiple times as required. If the individual is above 67 years of age and up to 73 years of age, he can avail of the loan for a maximum of 3 times
• The rate of interest  is now linked to the bank’s MCLR which is MCLR + 2.00% for the bank’s staff pensioners and MCLR + 3% for other category of borrowers.

The bank has prescribed a eligibility criteria which should be adhered to by every individual applying for a Bank of Maharashtra Personal Loan. These criterions are used to check the legality of the application and the creditworthiness of the applicant to make sure that the loan would be duly repaid. The following are the prescribed list of criteria which requires adherence:

• The Bank of Maharashtra Personal loan is issued to existing Housing Loan Borrowers who are salaried individuals employed with a company and earning a salary every month.
• Corporate Salary Accountholders who have a total work experience of at least 2 years and are in the gainful employment with the present organization for a continuous period of at least 1 year can also avail the Personal Loan issued by the bank. These salary accountholders will also have to meet the additional criteria of having an existing relationship with the Bank of Maharashtra for the past 1 year at least.
• The minimum salary drawn by the Corporate Salary Accountholders in the past year should be at least Rs.3 lakhs. The same should be substantiated by submitting the last 2 years’ Income Tax Return or Form 16 provided by the Employer
• For salaried individuals who are existing Housing Loan Borrowers of the bank, the minimum salary drawn by them in the past year should be at least Rs.2.5 lakhs. The same should be substantiated by submitting the last 2 years’ Income Tax Return or Form 16 provided by the Employer and they should also have sufficient disposable income required for Bank of Maharashtra Personal Loan to avail the loan
• The minimum age at which the individual can apply for this loan is 21 years while the maximum age allowed for the loan application is 60 years. Individual beyond the maximum specified age and the minimum specified age are not qualified to apply for a Bank of Maharashtra Personal Loan

The rate of interest payable is linked to MCLR and may vary according to various schemes and upon bank’s discretion. The current MCLR is equal to 8.75%.

The facility of calculating the respective Equated Monthly Instalments is allowed by the bank through its EMI calculator which would calculate the monthly outgo of the applicant if he decides to avail the loan. The following instances are compiled using the calculator of the bank.

• Vivek has now shifted to Pune after getting a transfer . He took a loan using Bank of Maharashtra’s housing  loan scheme and purchased a house in Pune. Now, he wants to furnish the house and requires Rs. 1 lakh for buying the furniture and appliances. He certainly doesn’t  want to spend his little savings and so he decides to approach the bank for a Personal loan. If he  agrees to repay the loan in 12 months , the bank shall charge Rs. 9002 approximately as EMIs at an interest rate of 14.50%.
• Mr.Sharma has a daughter who is about to get married. He plans a grand celebration and starts making budget for the same. After considering all his existing savings, he still needs another Rs 1.5 lakhs and so he decides to take a loan. He chooses Bank Of Maharshtra personal loan and proposes to repay the amount in 2.5 years or 30 months. . At the applicable interest rate of 15.50% a EMI of Rs. 7309 approximately shall be charged by the bank.
• Shyam is an advertising professional in a leading advertising agency. He has been working there since the last 2 years and is in the prime position in his company. His company maintains a Corporate Salary Account with the Bank of Maharashtra and he decides to avail a loan of Rs.1.5 lakhs from the bank to undertake a leisurely vacation as a break from work. He approaches the bank with his requirement and being a Corporate Salary Accountholder, a Bank of Maharashtra Personal Loan interest rate of 14.50% is charged which is 1% lower than the rate charged from the normal public for the loan. At the mentioned rate of interest, his Equated Monthly Installment (EMI) works out to be Rs.5163 approximately if he repays the loan within 36 months or 3 years.

The following table records the EMI of each of the above-mentioned cases for easy understanding:

Applicant	Loan Amount	Interest Rate for Personal Loans	Term	EMI
Ram	1 lakh	14.5%	12 months	9002
Mr. Mishra	1.5 lakhs	15.5%	30 months	7309
Shyam	1.5 lakhs	14.5%	36 months	5163

Applying for a Personal Loan from Bank of Maharashtra

The Paisabazaar.com website is available for applying for a Personal Loan from Bank of Maharashtra wherein by filling up the necessary details; one can easily apply for a Personal Loan online