As the moment draws closer to offer letters from the B-Schools to arrive after the GD/PI rounds and the results are released, many MBA aspirants cling back and forth when investing their lives in the B-Schools due to their rising fees. But money is not anything that can deter someone from going into their dream B-School, and that’s why it’s time to make that dream exist with an education loan. Here is a guide to get an education loan for MBA.
How do I apply for an education loan for MBA?
The ease of operation of every foreign education loan for MBA students depends very much on the contract terms of the lending institution. There are several lenders who are lending an MBA education loan in India. So, how are you going to choose the correct one whose policies meet the financial criteria of your university/college? For example, if the country in which you wish to study is not on your respective bank’s list of countries qualified for education loan for MBA abroad, it is likely that bank officials will fail to process your application. The education loan eligibility for MBA varies with different loans. This is one of the most popular challenges confronted by candidates who intend to take advantage of an MBA student loan from government banks.
This is where the UniCreds come into the picture. If you apply with us, we can guarantee that the whole loan phase becomes a piece of cake for you.
What are the various sorts of lenders that provide education loan for MBA?
Education loans in general education loan for MBA abroad are classified into two types, depending on the requirement for collateral. The first type is called Secured Education Loans.
The second type of student loan is an unsecured MBA education loan or an education loan without collateral. Non-collateral student loans do not need collateral, unlike secured loans.
Documents necessary for education loan for MBA abroad
- Application for the loan in bank format
- Proof of entry
- Passport size photographs
- Address and evidence of age if you are not a current bank customer
- Copies of the transcripts in the qualifying examinations
- Schedule of fees for the course
- Statement of bank account for the last six months of the borrower/co-borrower Income tax statement of not more than two years (students or parents)
- A concise statement of the borrower’s assets and liabilities
When is a good time to apply for an MBA Education Loan?
If you want to finance your MBA abroad with the aid of an educational loan, the best period to apply will be at least 1.5 months before you start your visa procedure. The best option will be to submit shortly after you have obtained entry to a college abroad.
If you are looking forward to becoming an international student and need assistance with student loans, all you have to do is fill the form in this blog.
Tips to Get Education Loan for MBA
If you stick to the following suggestions when getting funding for MBA with Education Loan, not only can you get the greatest offer, but you can also save a ton of money when repaying your education loan for MBA abroad with interest. (Keep in mind that you need to be careful about the education loan eligibility for mba for different loan schemes.)
1. Calculate the estimated expenditures
Calculate the demand for MBA funds on the basis of 4 considerations, i.e. the requirement for 2-year funds; the prospective work market after 2 years; the amount required to live a non-luxurious life over the year; and the EMI on the basis of the interest rate and the repayment date. Apart from finding money for school fees, you need to worry about accommodation & boarding costs, computers, stationery, books, clothes, and others. Taken together, each of these costs may be very heavy. So it’s for sure that you will incur them.
2. Look for the cheapest education loan for MBA
You will save at least 2 lakhs on your admission fee if you opt for a student loan from the right lender after a little negotiation.
Almost all banks use their own study loan schemes to finance MBA studies in India and abroad. These study schemes are split into two parts – one is a standard study loan for students of normal academic institutions and the other is for premium institutions such as IITs, IIMs, XLRIs, MDIs, SPJIMRs, IMIs, IMTs, IIFTs.
The distinction between the two forms of schemes is that the study loan schemes for top institutions give you a greater sum with a lower interest rate. The Corporate/Head Offices of these banks shall post a revised list of such premium B colleges.
If your institute comes under the category of top MBA college, you can get a low-interest rate MBA study loan and you will be able to save a considerable sum over the repayment period of 7 years or so when a 0.25 per cent increase in interest rate will have a cumulative impact on lakhs at the end of the year.
3. Try comparing MBA Funding Schemes for different banks
Educational MBA loans are applicable to almost all banks and other specialist financial entities in the private and public sectors. These loan schemes are called by different names to determine the different terms and conditions, maximum number, concessionary interest rate, co-borrowing, need for margin and protection.
4. Ask for a shorter period of payment
Think about reducing the maturity time on your school loan. The banks have tactfully updated and expanded the same. The burden of interest would be higher for a prolonged period of time. For eg, if you repay a loan sum in 10 years on which accumulated interest is Rs. 6.4 lakh, the same amount, if repaid in 7 years, would bear the net interest of about Rs. 4.35 lakhs as the interest rate will be lower due to a shorter repayment duration.
5. Pay interest in the course cycle
Try to repay the balance of basic interest added to your study loan amount. It will reduce the interest pressure as interest compounding starts after 1 year of completion of the program.
FAQs
Q1) How should I arrange my MBA money?
The best option to arrange for your MBA money is to get an education loan. There are many banks which provide lucrative education loan options for students planning to go abroad.
Q2) Is an education loan available for MBA?
Yes, education loan is available for students who want to pursue MBA. Depending on the cost of the MBA course and the type of institution, banks may finance up to 100% of the education loan. Most banks don’t need a margin deposit for MBA education loans up to Rs. 4 lakh. A co-applicant with collateral may be needed for loans of more than Rs 4 lakh and up to Rs 7.5 lakh.
Q3) Is it worth taking an education loan for MBA?
It is considered a good option to take an education loan for MBA. Simply applying for an MBA tuition loan will save you taxes. Your income would generally be Rs 10 LPA or more after obtaining an MBA degree. Hence, payback becomes easier.
Q4) Do we get loans for MBA in India?
Yes, many banks have a dedicated section to provide education loans to students looking to pursue MBA in India. With the right documents and admission letter, you can successfully apply for an education loan in India.
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