Know all about MBA Education Loan options – NDIM- New Delhi Institute of Management

Know all about MBA Education Loan options

MBA education Loan, MBA, education loan

MBA education Loan, MBA, education loan

Financing your MBA: Know all about MBA Education Loan

MBA education fee in India is generally very high, almost around Rs. 5 to 20 Lakhs. Due to the course high fee structure, many students face trouble in getting admission in Top MBA colleges. But money should not be the factor that stops you from getting into Top B-School and that’s why here we are going to tell you everything about Education Loan.

Today, loans for MBA programme are available with almost all the major banks and some banks have even done tie-ups with some of the premier B-Schools that provide its students with a special rate of interest that is normally lower than the normal market rate of interest.

Eligibility to get MBA Education Loan

One will be eligible to get MBA education Loan if she/he is an Indian citizen and has a documentary proof of having secured a confirmed admission to the course.

Getting a loan gets easy if one has secured admissions in top B-Schools like IIMs, IITs, FMS Delhi, XLRI Jamshedpur, SPJIMR Mumbai, NDIM Delhi etc. In these cases, many education loan providers call the students themselves and assist them in the education loan process.  

Also Read: How to choose the right business school?

Expenses covered under MBA Education Loan

There are many other expenses too apart from tuition fees encountered by the student during their MBA course. Usually, the bank also covers these extra expenses apart from tuition fee while granting a loan, like:

  • Examination, Library, and Laboratory fee
  • Books, equipment, and other study material cost
  • Travel expenses, Expenses for Study Abroad Programme
  • Cost to buy Laptop or any other computers-essential required for completion of the course
  • Expenses for Study tours, project work, thesis etc.

Documents required to Apply for MBA Education Loan

  • Loan application form
  • Documentary Proof of having secured a confirmed admission to the college
  • Passport size photos, address and age proof of the candidate
  • Copies of mark sheets in the qualifying entrance exams
  • Prospectus where the course fee is mentioned
  • Bank account Statement of borrower/co-borrower for last 6 months
  • Income tax assessment of student’s or parents’

MBA Education Loan: Collateral requirement

For most banks, there is no margin money required for education loan up to Rs. 4 lakh. For loans above Rs 4 lakhs up to Rs 7.5 lakh, a third-party guarantee is required and a collateral is asked for a loan above Rs. 7.5 lakh.

Proper steps to Apply for an MBA Education Loan

Here is the procedure to apply for an education loan in India:

  • The student has to first apply online for education loan.
  • Bank will then follow up with the student and parents.
  • A representative of the bank will visit the student’s house and collect all the required documents along with a signed application form.
  • A credit team from the bank then will review all the documents and underwrite the education loan application.
  • The bank will then approve the education loan or ask for any additional information if required.
  • Once the student’s signature is on the education loan agreement, all the loan disbursement formalities are completed.
  • The education loan amount is deposited in the mentioned bank account.

Repayment of MBA Education Loan

Repayment of Loan for MBA Education starts 1 year after the course completion or six months after getting a job, whichever is earlier. The repayment period is generally between 5 and 7 years but can be extended beyond, depending on the bank’s terms and conditions.

Also Read: How to know which MBA Specialization is right for you?