MBA Education Loan – benefits, procedure and schemes

Know all about MBA Education Loan options

As the deadline for B-school offer letters to arrive after GD/PI rounds and the announcement of results approaches, many MBA candidates shudder and reconsider spending their life in B-schools due to their expensive tuition. MBA enrolment in India, for example, may cost between Rs 5 and 20 Lakhs – a sum significant enough to cause students to think about and arrange their money. However, money should help everyone get into their preferred B-school, which is why it is time to make that dream a reality with an education loan.

Why Get an MBA Education Loan?

An MBA Educational Loan is money given to students by other banks and financial institutions so that they can continue their studies. Students previously admitted to MBA programs are eligible for the loan. Here are some advantages to borrowing money for college.

Affordability

The cheapest MBA program costs a few lakhs of rupees in Lithuania, Latvia, Poland, Sweden, and Norway. Tuition at top business schools ranges from INR 10 lakhs to INR 20 lakhs. Students should budget for personal expenses, project costs, and living expenses. As a result, paying for an MBA program is just as vital as being admitted if you want to feel secure and at ease while enrolled.

Financially optimal choice

Obtaining a financially solid educational loan is the ideal approach to pay for your MBA program. Numerous banks, whether they are in the private or governmental sector, offer educational loans to students enrolled in professional programs. For MBA programs abroad, many Indian banks also offer student loans. Many Indian banks provide educational loans for students enrolling in MBA programs domestically and abroad. A variety of finance programs, as well as offering distance MBAs. So, when applying for an MBA school loan, selecting the right bank and loan package is vital.

A Different Approach to Realizing Dreams

Gaining admission to one of the top MBA programs abroad requires a tough financial commitment to match the cost of the expensive program. Therefore, the most common and useful way to manage the program’s funding, whether an MBA is being delivered in India or abroad, is through educational loans.

Education loan for MBA abroad 

Raising the requisite funds is among the most challenging parts of doing an MBA overseas. If an MBA program is being pursued abroad, particularly in the United States or Europe, students must be financially stable and secure. People from all over the world may not be able to afford the high cost of living and education in a country abroad from their own pockets.

However, the ambition to pursue an education overseas and achieve success in life will always drive you to get past these challenges. One of the most crucial elements of the entire procedure is organizing finances. Numerous banks have taken note of this situation, and found a solution to the problem of affording higher education, by giving students who want to study abroad education and student loans. Let’s look at some of the banks and NBFCs that are lending money to students for education loans so they can study abroad for an MBA or any other course.

Loan schemes	Descriptions
Oriental Bank of Commerce Education Loan for Study in India and Abroad	Students who wish to pursue their education in India or abroad may do so through this financing scheme. The loan amount will be set by the institute’s fee schedule if the student decides to continue his studies in the United States. The benefit of this plan is that it offers insurance coverage and does not charge borrowers a penalty for early repayment. If the loan amount exceeds INR 4 lakhs, the margin on loans taken for studying abroad is 15%.
SBI Global ED-VANTAGE Scheme	Candidates who wish to pursue full-time studies abroad may apply for this financing. Students have a 15-year grace period during which they must repay loans totaling up to INR 1.5 crore. This loan must be returned within six months of the course’s conclusion and requires collateral from the borrower.
HDFC Bank Education Loan for Foreign Education	For students who want to study abroad, there is a financial option accessible. The maximum amount available under this program is INR 20 lakhs, with a moderate rate of interest. Additionally, it gives the borrower tax advantages, and it can be approved before admission.
International Student Loan Program (ISLP)	This program has been established especially for foreign students who want to study in the US. With this scheme, students can borrow as little as $1500 and extend the repayment period to 25 years. This program’s funding is used to pay for tuition and other costs.
CREDILA	The well-known HDFC bank’s subsidiary Credila provides loans to Indian students who want to pursue higher education overseas. The loans can be repaid over a ten-year period and are offered at a competitive variable interest rate.
Avanse	A member of the DHFL group and one of the most well-known non-banking financial institutions. Student loans from Avanse can cover the full cost of tuition and other fees. In addition, the processing fee may be between 1% and 2% of the loan amount and the interest rates are variable.
Global Student Loan Corporation	The GSLC offers loans to international students who wish to pursue higher education in the US without the requirement of a co-signer. I

How to avail of an MBA Education Loan

Each university connects to a source that offers information on the numerous banks that offer loans. However, there are no explicit directions to make the process simple to comprehend.

Following are the steps to taking out a loan for an MBA

• After conducting research and reviewing catalogs, it is critical to compare the various rates provided by various banks.
• After choosing the bank of their choice, applicants can complete an application in person or online with the bank.
• The bank will connect the student after they submit an application. The caller can be a representative who will ask about the needs and specifics of the applicants.
• Students are instructed to go to the bank with the necessary paperwork. It would be beneficial for the pupils to bring their parents, as it would aid in comprehending the process.
• Candidates should post the necessary paperwork to the bank, where the bank will review the submissions.
• After mailing the borrower the confirmed documents, the bank then accepts the loan.
• The banks then cross-reference a list of specifications with the college the applicant intends to enroll in.
• After the loan is granted, the funds are placed into the institute’s account. In certain situations, it might also be put into the student’s account.

Key takeaways 

• An MBA Educational Loan is money given to students by other banks and financial institutions so that they can continue their studies.
• Gaining admission to one of the top MBA programs abroad requires a tough financial commitment to match the cost of the expensive program.
• It is crucial to examine the various rates offered by various banks after conducting research and consulting catalogs.

Did you find this blog helpful? Please share your views and perspectives in the comments below. Please contact us for more information on education loan for mba by clicking here. We would be happy to assist you with your queries.

Liked this blog? Read next: Education loan for abroad studies without collateral

FAQs 

Q1. Is it worthwhile to take out student loans for an MBA?

Ans: It actually depends but if someone has the capacity to complete an MBA by taking an education loan then, they should. A higher degree does increase your earnings in the job market.

Q2. Can I get a 100% loan for my education?

Ans: Yes, student loans completely pay the cost of college. However, only costs that fall under a specific cap will receive full coverage.

Q3. Will an MBA be beneficial in my future career?

Ans: Most business professionals view an MBA as a worthwhile investment, but people pursue this level of study at different times throughout their careers.