Higher studies in India can cost excessive rates; however, it depends on the colleges.MBA is a course preferred by most of the youngsters globally. To cope with growing fees of MBA, education loan for MBA in India by various financial institutes. Financing options to pursue the expensive MBA program is need of an hour before getting admission in MBA colleges. It becomes difficult to pursue an MBA without finding ways for funding your MBA program and also other costs and expenses which should also be taken into consideration equally.
Top Quick Links
- Why Education Loan for MBA?
- MBA education Loan Options
- How to take an MBA loan with steps?
- The Best Way To Select The Best Bank and the Best Loan Scheme
Why Education Loan for MBA?
Economical way of taking education: Due to gaining numbers in MBA aspirants, MBA programs in reputed colleges cost hefty. The students who cannot finance the fees from their parents have to find an alternative option to fulfill their dream of pursuing an MBA.
Affordability: The most affordable MBA program FMS costs in lakhs. IIMs have a fee structure around INR 13 lakhs to 23 lakhs. The top Business Schools also have fee structure between 10 to 20 lakhs. Apart from this, students should also keep into account the hostel fees, project costs, and personal expenses. So to be doubt free and relaxed during an MBA program, funding an MBA program is as important as getting an admission.
Best Financial option: The best option for financing your MBA program is to opt for an economically viable educational loan. Educational loans for the professional programs can be availed from many banks be it a private or public sector bank. Many banks in India offer education loans for MBA abroad as well.Many banks in India offer education loans to students for pursuing MBA in India and abroad. And offer various schemes for education loan for Distance MBA also. So choosing the right bank and right loan scheme is the essential thing in availing an educational loan for MBA.
Alternative way of fulfilling dreams: MBA Education is an expensive program, and financing the program is an equally challenging task to secure a seat in one of the top MBA colleges of India. When it comes to funding an MBA, be it in India or abroad, educational loans are the most preferred and viable option to manage the financing of the program.
However, like any other loan lending, borrowing money has risks alongside it, and MBA education loans are no different. There are many risks involved even in an MBA education loan, which can haunt you during your MBA program period or after graduating, so how to get the best education loan for MBA in India.
MBA Education Loan Options
Prefer a Floating Interest Rate on an MBA education loan because if the base rate is lowered, the effective rate of interest on education loans will also considerably go down. Thus find the scheme that provides education loans on a floating interest rate.
Use Work-Experience to your advantage, that is MBA students having work experience can successfully negotiate a reduced interest rate with a decrease in 0.25% to 0.5% interest rates.
Female candidates might get a better rate of interest all thanks to various government schemes that are put forth for the betterment of the girl's students. The repayment term of a loan varies accordingly with different banks; MBA students should prefer a lower repayment term with a lower interest rate. Thus the students have to decide on the repayment term to have a short-term repayment of the loan or a long-term repayment scheme based on capabilities of refund of the students.
- There are many options for funding your MBA studies at different interest rates. There are many loan schemes offered to various banks with various benefits and also hidden charges, with varying rates of interest.
- Education loans for MBA in India are offered across various Private banks and Public Sector banks at differential interest schemes. Thus the article enlists all the banks of India, providing MBA education loan schemes to the aspirants for funding the MBA education.
Education Loan for MBA by Public Sector Banks
Most of the public sector banks offer Education loans for MBA Program, the public sector banks are considered to be safe players in the market, and the terms, and conditions of these banks have much transparency.
|Public Sector Banks Offering MBA Loan Scheme||Rate of Interest( these figures tend to change accordingly with the banks)||Maximum Loan Value|
|State Bank Of India||8.05% - 10.15%||40 L|
|Punjab National Bank||8.35% - 10.95%||15 L|
|Union Bank Of India||8.65% - 9.25%||30 L|
|Central Bank Of India||8.90% - 10.14%||20 L|
|Punjab and Sind Bank||9.75% - 10.75%||10 L|
|Allahabad Bank||8%-10%||20 L|
|Dena Bank||10% - 11.8%||15 L|
|Canara Bank||8.65% - 10.75%||20 L|
Education Loan for MBA by Private Banks
Several private banks offer MBA education loans to students at considerably higher rates than the public sector banks, but the processing time is shorter, and less paperwork.
Private Banks Offering MBA Loan Scheme Rate of Interest (these figures tend to change accordingly with the banks)
|Public sector Banks||Rate of Interest||Maximum Loan Value|
|Kotak Mahindra Bank||11.5% - 24%||10|
|IDBI Bank Ltd||8.5% - 10.5%||15-20|
|Avanse Financial Service(NBFC)||11.50%||No limit|
|Credila HDFC Subsidiary||12.50%||25-30|
|Axis Bank||8.8% - 14%||75|
How to take an MBA Education loan?
Every college is affiliated with giving information on the different banks that offer loans. But there are no steps given that help in making and understanding the procedure easily. Below are the steps explained for taking a loan for MBA:
- Step 1: After researching and referring to catalogs, it is very important to compare the different rates of different banks.
- Step 2: After aspirants choose the bank of their choice, they can either pay a visit to the bank or also fill an application on the bank’s website.
- Step 3: After the application is filed students receive a call from the respective bank, it could a representative who would ask for details and requirements of the aspirants.
- Step 4: Students are asked to visit the bank with the required documents. The students can also take their guardian as it would be helpful for understanding.
- Step 5: The aspirants are asked every document to be submitted to the bank post which there is a review of the documents done by the bank.
- Step 6: The bank then sends in a mail of the verified procedure and documents, after which the loan is approved by the bank.
- Step 7: The banks then verify certain criteria with the college the aspirant would be admitted to.
- Step 8: After the loan approval, the amount is deposited into the institute’s account. In some cases, it may be deposited into the student’s account as well.
- Step 9: If there is any excess usage of the amount students will require to provide bills and receipts to redeem the same.
The Best Way To Select The Best Bank and the Best Loan Scheme
Find the below checklist before choosing a bank or a bank scheme for pursuing an education loan for MBA.
- Compare different loan schemes available at various government and private banks that offer education loans for MBA programs.
- No margin money; the banks decide whether they can fund the entire MBA education, including tuition fee as well as other additional expenses or not.
- These expenses are called margin money which is funded by banks would be very beneficial. Finding the bank that does not charge Loan Processing fees, these charges by banks can differ from 4000 to 5000 rupees which is also a loss for the students. So find a bank that does not charge, or charge less nominal processing fees.
- Evaluate Interest Rate Structure so that the students do not cost more than the base rate or any other hidden interest rates.
- Interest during the Moratorium Period should include the MBA course duration plus the grace period granted by the bank before the repayment of the loan begins.
List of Top Colleges for MBA in India
Various colleges have some good courses and syllabus, below are a few colleges that have vivid subjects for students to explore;
- IIM Ahmedabad
- IIM Bangalore
- IIM Calcutta
- IIM Lucknow
- IIM Kozhikode
- IIM Indore
- Department of Management Studies, Indian Institute of Technology, Delhi
- Department of Management Studies, Indian Institute of Technology, Madras
- IIT Roorkee
- FMS Delhi
So now the MBA aspirants are aware of all the loan schemes offered at different banks at differential interest rates. Follow the guideline to make sure that you choose the best loan scheme and do not let funding stop your MBA dream. So read through the article and make the best choice