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:
Documents required to Apply for MBA Education Loan
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:
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.