Bank of Maharashtra Education Rate of Interest

Bank of Maharashtra offers loan for both professional courses as well as vocational courses.

  • A margin of 15% is charged if pursuing studies in abroad.
  • The maximum loan limit is INR 20 Lacs.
  • The maximum repayment period is 15 years.

Rate of Interest charged by the bank depends on the base rate set by Bank of Maharashtra as per the guideline set by RBI:

  • The RoI for a loan up to INR 4 Lacs is 12.75%.
  • The RoI for a loan between INR 4 Lacs and 7.5 Lacs is 12.25%.
  • The RoI for a loan above INR 7.5 Lacs is 11.50%.
  • 0.5% concession is offered to girls.

CALCULATE YOUR EDUCATION LOAN EMI

Fill the Loan Amount
Fill the Interest Rate
Fill the Loan Tenure
EMI Payable

188 per month

Total Interest

1,280

Payable Amount

11,280

Total Interest
Principal Loan Amount

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Bank of Maharashtra Education Loan Eligibility

loan eligibility image
  • Indian National. The student should be a citizen of India or hold the passport of India.
  • Admission Basis. Admission to the course should be on the basis of an entrance exam or merit.
  • Eligible Courses. Graduation/post-graduation/diploma courses fall under the eligibility of this loan.

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Applicable Rate of Interest Up to 4 Lacs : 12.75%
Between 4 Lacs and 7.5 Lacs : 12.25%
Above 7.5 Lacs 11.50%
Up to INR 7.50 Lacs: 10.55%
Above INR 7.50 Lacs: 10.80%
up to INR 7.5 Lacs: MCLR + 2.00%
above INR 7.5 Lacs: 2.60%
Upto 4 Lacs- 16.50%
Upto 7.5 Lacs- 17.50%
Above 7.5 Lacs- 15.50%
Max Loan with Collateral 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Max loan without collateral 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs
For India: 10 Lacs
For Abroad: 20 Lacs and beyond based requirement
Processing Fee Nil
Up to INR 4 Lacs: Nil
Above INR 4 Lacs: INR 5000
Nil
Nil
Repayment Period 15Year
15 years
15 years
7 years
Loan for top institutions No
Yes, SBI Scholar Loan Scheme
Yes, PNB Pratibha
No
Margin Up to INR 4 Lacs: Nil
Above INR 4 Lacs:
For India: 5%
For Abroad: 15%
For loan above INR 4 Lacs
In India: 5%
In abroad: 15%
Up to INR 4 Lacs - NIL
Above INR 4 Lacs - 5%
Upto loan 4 Lacs: No margin
Above 4 Lacs: for India: 5%
for Abroad: 15%
Age Limit No age criteria
no age limit
No age limit
No
Loan Security Up to 4 Lacs: No security
From 4 to 7. 50 Lacs: Third party guarantee required
Above 7.50 Lacs: Collateral security equal to the amount of loan
Upto 7.50 Lacs: Only Parent/ Guardian as co-borrower. No Collateral Security or third party guarantee
Above INR 7.50 Lacs: Tangible security along with parents as co borrower
Upto INR 7.50 Lacs: Parent(s)/guardian be made joint borrower (s). No tangible Security and /or 3rd party guarantee is required.
Above INR 7.50 Lacs: Parent(s)/guardian be joint borrower(s). Tangible collateral security of suitable value acceptable to bank.
Third party guarantee
Collateral security
Additionally, assignment of LIC policy in favor of bank amounting 100% of education loan amount
Assignment of Future salaries in favor of Axis Bank
Eligibility concession for SC/ST No
No
50% for SC/ST, and;60% for General category.
No
Processing Time N.A
20 days
15 days
14 Days
Prepayment charges Nil
Nil
Nil
Nil
Penal charges Nil
Penal interest @ 2% to be charged for loans above Rs.4 lacs for the overdue amount and overdue period
Nil
@ 2% per month on the overdue installment/s
Mandatory insurance cover Not mandatory
Yes
yes
yes
Travel expeneses Yes
yes
yes
yes
Bank transfter allowance No such clause mentioned
available
available
No such clause mentioned
Top up loan availability Unavailable
yes
available
unavailable
Interest Subsidy Schemes CSIS
Skill Loan Scheme
Padho Pradesh
Padho Pardesh
CSIS
Skill Loan Scheme
Padho Pardesh
CSIS
Skill Loan Scheme
CSIS
Tax benifit Yes
yes
yes
yes
Concession/benefits No margin required upto loan of INR 4 lacs
No collateral or security required for loan upto INR 4 Lacs
0.50% concession to girl students
No prepayment charges
Concession to girl students
1% concession if interest is serviced during moratorium period including course period
0.5% concession to girl students
0.5% concession if interest is serviced during moratorium period including course period
Online application
There is no processing fee charged
No pre- payment charges are applied
No pre- closure charges are applied
Loan Disbursal period is 15 working days from the date of final submission of documents
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How to apply for Bank of Maharashtra Education Loan ?

Bank of Maharashtra Education loan application form can be available online or offline at Bank branches.

Visit the official website for Bank of Maharashtra Education Loan.

Click on Apply Now

Fill out the form with your details.

Upload the mandatory documents required.

Submit the form and take out a print out of the application.

Visit the bank's branch for further formalities.

Applicants can directly visit the nearest branch and ask for an application form. The bank representative will then guide them with all the necessary information regarding eligibility, documents required and also which loan is best suitable.

Bank of Maharashtra Education Loan Details

Loan Limit
For India: INR 10 Lacs
For Abroad: INR 20 Lacs
Margin
Up to INR 4 Lacs: Nil
Above INR 4 lacs:
For India: 5%
For Abroad: 15%
Processing Fee
Nil
Loan Security
Up to INR 4 Lacs: No security, parents/ guardian to be co-borrowers
From INR 4 to 7. 50 Lacs: Third party guarantee required
Above INR 7.50 Lacs: Collateral security equal to the amount of loan after providing a requisite margin
Loan Repayment
15 Years

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Expenses covered under Bank of Maharashtra Student Loan Scheme

  • Tuition fee
  • Examination fee
  • Library/ Laboratory fee
  • Hostel Fee
  • Cost of Books, equipment, instrument or uniforms
  • Miscellaneous expenses- study tours, project work, thesis, etc.
  • A reasonable cost of computer or laptop (if required)

Education Loan Documents Required ?

Duly filled Application Form

Confirmation of student's admission to the Institute.

Copies of identity proof,Passport, Voter ID, Driving Licence or PAN Card

Two recent passport size photographs of applicant, co-applicant, and guarantor

Mark sheet of last qualified exam

Income Proof of parents/ guardians along with income tax statements for the last 2 years and 6 months bank statement Latest salary slip.

Schedule of expenses for the course

Details of all existing loans and scholarship details (if any)

Copy of prospectus of the institute to calculate total expenses etc.

Interest Subsidy Schemes

Central Scheme of Interest Subsidy (CSIS)

Formulated by the Govt. of India, a scheme to assist the students belonging to the economically weaker section.

Skill Loan Scheme

The bank offers 'Skill Loan Scheme' for students who aspire to gain knowledge and specialized training in one specific field.

Padho Pardesh

Formulated under the Prime Minister's 15 point programme, this subsidy scheme benefits the students of the minority community who want to study abroad. Such students are provided 100% interest subsidy.

Central Scheme of Interest Subsidy (CSIS)
  • The gross annual parents’ income should be less than INR 4.50 Lacs
  • Repayment of the loan has to be done after 12 months of course completion or 6 months after getting the job (whichever is earlier).

This scheme is applicable for technical and professional courses from govt. recognized institutes for courses after class XII.

Under IBA education loan scheme, the maximum loan limit is INR 10 Lacs.

Eligibility:

The subsidy is provided for a moratorium period of 1 year after course completion or 6 months after getting a job (whichever is earlier). After this, the loan amount should be paid in accordance with the education loan scheme.

Scheme Applicable Year:

  • This scheme is implemented in the academic year 2009 – 2010 from April 1, 2009.
  • Loan disbursed after April 1,2009, irrespective of the date of sanction shall only be covered under the scheme.
  • In case of loans sanctioned prior to April 1, 2009, for the courses beginning prior to the academic year 2009-10, the interest subsidy is available to the extent of disbursements made after April 1, 2009.

Canara Bank has been appointed as the nodal bank by the government to facilitate this scheme.

Skill Loan Scheme

Some additional benefits of 'Skill Loan Scheme' include concession of 1% for the full tenure of the loan, if the interest charged is serviced promptly as and when applied during the period of the moratorium and including during the period of the course.

Padho Pardesh

Procedure for availing Padho Pradesh

  • Students are supposed to inform their lending banks about the recently launched scheme of Padho Pardesh by Ministry of Minority Affairs.
  • Then the students have to submit the proof of their eligibility for the particular scheme
  • If a student is eligible, the lending bank will feed the students information into a portal of Padho Pardesh.
  • The portal will remain open for the period of two months in every quarter.

Courses covered under Padho Pardesh Scheme

Courses that are covered by Government of India under this scheme are as follows:

Arts/ Humanities/ Social SciencesCommerce
Pure ScienceEngineering
Bio- technology/ Genetic EngineeringIndustrial Environmental Engineering
Nano- technologyMarine Engineering
Petro-chemical EngineeringPlastic Technology
Cryogenic EngineeringMechatronics
Automation Robotics including artificial intelligenceLaser Technology
Low Temperature Thermal DynamicsArt Restoration Technology
OptometryDock and Harbour Engineering
Imaging System TechnologyComposite Materials Engineering including Decentralized power
Packaging Engineering/ TechnologyNuclear Engineering
Information Technology including Computer Engineering, Software, Software Quality assurance, etc.Industrial Safety Engineering
MedicalAgriculture & Agro Technology
AgronomyFloriculture & Landscaping
Forestry & Natural ResourcesFood Sciences & Technology
Plant PathologyHorticulture
Energy StudiesFarm Power & Machinery
Veterinary SciencesSoils & Water Management
Plant Breeding & GeneticsSmall- scale Rural Technology
Ocean & Atmospheric SciencesMB/MCA
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Frequently Asked Questions

01

What schemes does Bank of Maharashtra considers for its education loans?

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There are multiple schemes offered by Bank of Maharashtra apart from the basic education loan. These are:

  • Vocational Education and Training Loan scheme
  • Interest Subsidy Scheme
02

In whose name is the loan granted?

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The loan is granted in the name of the student

03

Is the loan contract executed only in student's name?

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No, the loan can be executed both in name of student and co-borrower as both are equally responsible for repayment of loan.

04

What is the age limit for availing loan in Bank of Maharashtra?

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There is no age restriction for the applicant applying for education loan from Bank of Maharashtra. He/ she should only meet the other stated eligibility criteria's.

05

Are minors eligible to apply for Bank of Maharashtra Education Loan?

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Yes, Minors aspiring for further studies can apply for education loan with help of legal representation from parents/ guardians.

06

What does margin on any loan mean?

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Margin amount is the amount that a borrower has to pay through his/ her own sources in form of a down payment as his/ her contribution towards the education.

07

Should the student's margin be paid upfront in the starting?

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Margin can be paid on a year to year pro rata basis whenever bank disburses loan amount as per requirement.

08

Where can I avail Bank of Maharashtra Education Loan?

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You can either contact your nearest branch for the application form or details regarding the loan or apply online from the official website.

09

Is there any provision to apply for loan online?

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Yes, you can apply online through Vidyalakshmi portal to avail for this loan.

10

Can I view my loan statement online if I am an existing education loan borrower?

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Yes, by creating a login on Bank of Maharashtra web portal, you can view all details related to education loan online.

11

Is there any minimum aggregate marks to meet the eligibility criteria to avail Bank of Maharashtra education loan?

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Yes, a student must have secured a minimum aggregate of 50% marks in their last qualifying examination (10+2 or Graduation)

12

What is the discount/ rebate offered by Bank of Maharashtra?

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  • 0.50% concession is given to girl students
  • 0.50% concession to students securing admission to top premier institutes viz. IIMs, IITs, XLRI, and ISB.
  • Eligibility criteria and margin on education loan is relaxed for SC/ST students
13

What all is included in tangible collateral security?

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Mostly Bank of Maharashtra asks tangible security in lieu of the loan amount sanctioned along with assignment of future salaries in favour of Bank of Maharashtra. Tangible security includes documents related to land/ building/ government security/ public sector bonds/ units of UTI, NSC, Life insurance policy/ bank deposits/ shares or debentures. The value of the security should be equal to the education loan amount.

14

Is scholarship or assistantship included in the margin?

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Yes any scholarship or assistantship will be a part of margin charged on education loan.

15

What is Moratorium Period?

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Course Period plus one year, or six months after getting a job

16

What is tenure of an education loan?

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Tenure of education loan provided by Bank of Maharashtra is maximum 15 years

17

What does MCLR stands for?

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MCLR stands for Marginal Cost of funds based Lending Rate. It refers to the minimum interest rate of bank below which it cannot lend.

18

What all expenses are covered under this course?

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Expenses covered by Bank of Maharashtra education loan are:

  • Tuition/ college/ hostel fee
  • Examination/ lab/ library fee
  • Books/ uniform/ instruments
  • Caution deposit
  • Passage money for studies abroad, etc.
19

Will my travel expense will be covered if I take loan from Bank of Maharashtra?

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Yes, travel expenses are covered under this loan

20

I have taken admission through management quota. Am I eligible?

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This depends totally on bank's discretion as whether a student meets other eligibility criteria or not.

21

What do you mean by reputed or recognized institutes?

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Institutes that are affiliated to state/ central universities and comes under UGC or AICTE are considered as recognized institutes. Reputed institutes are those which are well known and have standard course of repute. More often, banks provide the list of institutes they consider for loan. (You can contact nearest branch for the same)

22

Are there any special benefits if I have secured admission to one of the top premier institutes?

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Bank of Maharashtra provides additional 0.50% concession to students who secure admission to premier institutes such as IITs, IIMs, XLRI, or ISB.

23

What is the processing fee or prepayment charges?

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The education loan offered by Bank of Maharashtra does not carry any prepayment charges or processing charges for studies in India or Abroad.

24

Will cost of my computer be covered under the loan sanctioned?

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Reasonable cost for the computer or laptop well be covered under the loan if it is required to complete the course.

25

Why is Pan Card necessary?

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Pan Card is one of the mandatory document required by banks these days. It is mandatory because:

  • Easy to assess Income
  • Easy to trace borrowers
26

Are diploma or certificate courses considered under Bank of Maharashtra education Loan (both for India and Abroad)?

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Yes diploma or certificate courses are eligible under Bank of Maharashtra Education Loan. Regular degree or diploma courses like, shipping, pilot training, and aeronautical that are approved by Director General of Civil Aviation or Shipping

27

Is a co-borrower necessary for loan?

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Yes, it is mandatory to have a co-borrower to avail loan from Bank of Maharashtra.

28

Who can be my co-borrower?

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Your parent/ spouse/ guardian can be a co-borrower. A co-borrower should be your immediate family member, should have a steady source of income, and a good credit history.

29

What all documents are required from the co-borrower?

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Documents required from the co-borrower are:

  • Attested copies of age proof, residence proof and birth date.
  • Self-attested passport size photograph
  • Income proof and/or copy of income tax return file
  • Details of collateral security along with government approved valuation certificate (if any).
30

How many guarantors do I need to borrow loan from Bank of Maharashtra?

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You need at least 2 guarantors to avail loan from Bank of Maharashtra.

31

What is the KYC requirement in education loan?

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KYC requirements are the documents as a proof of personal identification and residence proof of the applicant as well as the co-borrower.

32

What are maximum term for repayment?

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Repayment term:

  • For loan upto INR 7.50 Lacs: 10 years
  • For loan above INR 7.50 Lacs: 15 years
33

How can I repay the loan?

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You can repay the loan after the moratorium period by mode of EMI or through post- dated cheques.

34

What is EMI? How are they calculated?

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EMI stands for Equated Monthly Installments. It can be calculated by using the formula given below

  • EMI = [P x R x (1+R) ^n] / [(1+R)^ n-1]
  • Here, P is Amount of Education Loan, R is Rate of Interest, n is Tenure of the Loan.
  • Or simply you can use the EMI calculator provision available on Bank of Maharashtra’s official website.
35

Is the loan disbursed in name of individual applicant or to the institute/ university directly?

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The loan is disbursed directly to the institute/ university that you have taken admission to. Hence, an applicant is supposed to submit institute brochure with proper division of the fee

36

If I am unable to complete my course in given tenure, will my repayment term be extended?

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It is completely on the banks discretion to extend the moratorium period or not. It can be extended for maximum 2 years based on student's reason. You can contact your nearest branch for more details.

37

What is method of application of interest on education loan?

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The interest will be charged at simple rate from the date of disbursement till commencement of repayment of loan. After that, compound interest is charged on reducing balance.

38

What is interest rate of education loan?

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The interest rate is different for different category. Refer the table below:

Loan AmountApplicable Rate of Interest
Amount upto INR 4 Lacs12.75%
Amount between INR 4 to 7.50 Lacs12.25%
Amount above INR 7.50 Lacs11.50%
39

What is interest subsidy on education loan?

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Answer: Bank of Maharashtra offers

  • CSIS for students belonging to economically weaker section whose total family income does not cross more than INR 4.5 Lacs p.a., to promote education amongst them.
  • Vocational Education and Training is for students who wish to pursue vocational courses
40

What documents do I need to submit to avail interest subsidy scheme?

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The documents that need to be submitted are:

  • Income certificate issued by authorised authorities
  • Bonafide student certificate
  • Letter of undertaking or declaration signed by borrower/ co-borrower
41

If I am availing loan for overseas studies, can I also avail interest subsidy scheme?

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The bank takes the responsibility to cross verify all the employment details of the applicant and co-borrower. If the banks fails to cross verify every detail provided, it might reject the loan application.

42

Are there any tax benefits in education loans?

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Under Section 80E of Income Tax Act, loan borrowers can avail the tax benefits. This benefit is only available over and above INR 1,50,000. Tax benefits can be availed once the borrower starts paying interest on loan. The deduction is available until borrower pays off full interest amount on loan or for maximum of 8 years (whichever is earlier). You can visit the official website of Bank of Maharashtra to calculate your tax benefit through their tax benefit calculator.

43

Is it necessary to have bank account with the bank while availing loan from that particular bank?

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It is not necessary to have a bank account while availing the loan but it makes it easier for the borrower to get loan application approved.

44

Can I repay my loan in foreign currency even if my bank is in India?

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Yes, you can pay the amount in foreign currency (Euro, Pound, Dollar, etc.) The bank might charge an additional currency conversion fee as per RBI regulations.

45

Why do banks require insurance policy as security?

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The banks require insurance policy as security in lieu of education loan provided. The insurance policy should be equal or more to the amount of loan sanctioned. In case of untimely demise of the borrower, the bank recovers the amount from the insurance policy

46

Are there any additional benefits on availing loan from Bank of Maharashtra?

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There are no additional benefits mentioned on the official website. You might contact your nearest branch for the same.

47

What is credit score? Is it important for education loan?

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Credit Score is inclusive of various factors such as credit history (Loan history or credit card). If a student does not have a credit score, banks calculate it by considering factors such as University, College and the Course of admission. Banks consider the academic background of student and credit history of co-borrower.

48

Are NRIs eligible for the education loan?

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NRIs are eligible for the loan if they have Indian citizenship and are Indian passport holder.

49

Is Visa a necessary document for studying abroad?

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Visa is needed as a document proof but it is not a sole requirement.

50

What all procedures do one have to go through while applying for abroad?

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A student who is applying for studying abroad have to give necessary documents required by the bank. One needs to have a thorough knowledge of the course they are applying for and in which institute as it can be asked on the airport by the foreign officials.

51

If a student have any query, where or whom to contact?

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student can reach out to the nearest branch in case of any query.

Customer Care Number:1800 233 4526/ 1800 102 2636

Customer Care Id: mahasecure@mahabank.co.in

faq image