The high expenses associated with pursuing professional courses such as an MBA in the USA, including living costs, often lead students to consider education loans. An education loan for MBA in the USA provides a convenient and hassle-free way to achieve your career goals. An education loan for MBA in the USA for Indian students offers various government-backed advantages and money-saving opportunities. These loans cover all your expenses and ensure uninterrupted funding for your studies.
When students seek an education loan for an MBA in the USA, they have the choice between two options: secured and unsecured loans. With an increasing number of students aspiring to study in the USA and a growing demand for the best education loans, several non-banking financial companies (NBFCs) and banks have introduced new and customised loan schemes. These loans encompass all expenses associated with studying abroad, including tuition fees, accommodation costs, travel expenses, food, shopping, and more.
What Expenses Are Covered To Study MBA In The USA?
The cost of tuition for MBA programs in the USA varies between $45,000 to $77,000 per year, which is equivalent to approximately INR 36.78 Lakhs to INR 62.94 Lakhs. However, it’s important to note that MBA degrees from top-10 Business schools can exceed 1 Cr in cost. Nevertheless, there are several MBA colleges in the USA that offer more affordable options for Indian students with lower programme costs. Listed below are some of the top business schools in the USA:
| University | 1st-year tuition fees |
| Harvard Business School | 81,374 |
| Stanford Graduate School of Business | 78,705 |
| Sloan School of Management | 82,600 |
| Haas School of Business | 81,341 |
| Chicago Booth | 80,203 |
Interest Rates On Education Loans
Interest is always applied to the repayment amount when obtaining a loan from a financial lending institution. The same principle applies to an education loan for MBA in the USA, where the lender imposes a specific interest rate on the total sanctioned loan amount based on various factors. These factors include creditworthiness, financial background, tenure, assets pledged, and income of MBA students or professionals. A higher-quality portfolio increases the likelihood of obtaining higher loan limits for an education loan for an MBA in the USA.
Unsecured Student Loan For MBA In The USA
An education loan without collateral, also known as a non-collateral education loan, allows borrowers to obtain funds from a lender without providing any form of collateral as security. This means that students can secure an education loan for MBA in the USA without the need to pledge assets like a house, land, or other valuable possessions. Students can avail themselves of loan amounts of up to 50 Lakhs to support their educational pursuits.
Eligibility:
- The applicant’s academic profile is assessed to determine their employability potential. A minimum of 60% in 10th, 12th, and degree is required, and applicants with more than 3 backlogs may not qualify for an unsecured education loan.
- The financial co-applicants income and CIBIL score are crucial factors for determining eligibility for an unsecured education loan. Lenders rely on the financial co-applicant to repay the loan in case the student fails to do so, as no collateral is involved.
- UG and PG programmes in STEM disciplines, while courses like Public Policy or Aviation are less favoured. However, courses such as PhD, MBBS, Theology, and tailoring are not eligible for unsecured loans.
- Lenders focus on popular study-abroad destinations like the US, UK, Canada, Australia, Ireland, and Germany, but they may be hesitant when it comes to offering unsecured loans for lesser-known countries like China or Ukraine.
- The university you plan to attend is important. Private banks maintain a list of approved universities for which they offer unsecured loans.
Secured Education Loan For MBA In The USA
Providing collateral is a requirement for secured loans, allowing for higher loan amounts compared to unsecured loans. Moreover, with secured loans, you may not need a co-applicant. When exploring for an education loan for MBA in the USA, two public sector banks to consider are the State Bank of India (SBI) and the Union Bank of India (UBI).
Eligibility:
- Students must provide collateral such as property or fixed deposits as security against the loan.
- A co-applicant, usually a parent or guardian, is required for the loan. Their income and financial stability are considered during the evaluation process.
- Indian citizenship is required to qualify for secured education loans.
- The applicant should meet the minimum age requirement, usually 18 years or above.
- The applicant should have secured admission to a recognized course or university.
Why UniCreds?
Choosing UniCreds for your education loan for MBA in the USA offers several advantages that set it apart from other platforms. Here are some compelling reasons to consider UniCreds as your top choice:
- The education loan provides full financing (up to 100%) for both tuition and living expenses.
- No margin money is required for this loan.
- Immediate sanctions are available in case of emergencies.
- Customised financing options are offered to meet students’ needs.
- Students can compare different education loan options.
- Students can track the progress of their applications.
- Loans are available without the need for collateral.
- Services are conveniently delivered to the doorstep.
- A paperless approval process ensures efficiency and convenience.
Steps To Get An Education Loan For MBA In The USA
Numerous banks provide education loans up to a certain amount without requiring collateral or security. This is particularly beneficial for students who need more means to provide such collateral. Below, you will find comprehensive information about how to get an education loan for MBA in the USA.
The Eligibility Criteria
- The student must hold Indian citizenship.
- The applicant must possess a strong academic record.
- They must aim for admission to job-oriented technical or professional study programmes.
- The applicant must have a confirmed position at a university in the USA.
- The minimum age requirement for the applicant is 18 years.
The Documents Required
- Admission offer letter from the university.
- Completed loan application form.
- Estimated cost of study (based on the I-20 form).
- Original education certificates/mark sheets.
- Documents verifying qualifications in exams like GMAT, and TOEFL.
- Proof of residence for the student and co-borrower.
- Co-borrower’s income tax returns.
- PAN card and other identification documents of the student and co-borrower.
- Proof of co-borrowers income.
- Passport copy.
- Details of parents/co-obligates/guarantors’ assets and liabilities.
Banks Offering An Education Loan
- HDFC Credila
- Avanse education loan
- InCred Student Loan
- HDFC Credila study loan
- Bank of Baroda
- Axis Bank
- Auxilo
- ICICI Bank
- Prodigy Finance
- Mpower Finance
- Credence
- IDFC First Bank
How To Apply?
To apply for an education loan for MBA in the USA through UniCreds, follow these steps:
- Assess your loan eligibility by checking online.
- Consult with professionals to receive loan advice and consider your options.
- Select a lender and complete an online application.
- Receive a personalised checklist of required education loan documents.
- Submit the necessary documentation for your student loans online.
- Arrange for property and other legal evaluations to be conducted.
- Upon approval from the lender, obtain the loan sanction letter for your education loan.
FAQs
1. What are the rules for education loan repayment?
Most government banks offer an education loan repayment tenure of 12 to 15 years, excluding the moratorium period. However, students have the option to repay the loan earlier if they are able to do so.
2. What is the proof of income for an education loan?
The necessary documents include salary slips or certificates, copies of Form 16 and income tax returns acknowledged by the Income Tax Department, as well as bank account statements from the salary account for the past six months.
3. What expenses are covered in an education loan in India?
Education loans cover expenses such as library fees, books, laptops, examination fees, charges for extracurricular activities, and other costs related to studies.
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