Pursuing an MBA abroad is a life-changing decision that opens doors to global career opportunities. But with tuition fees often exceeding ₹60–80 lakhs, most students rely on an education loan for MBA abroad to make their dream feasible. MBA graduates are expected to have an employability rate of 78%, showing the growing value of this degree. Yet, funding remains a significant challenge for many.
In this blog, we’ll cover everything you need to know, from loan eligibility and documentation to interest rates, top lenders, and application steps, to help you secure the best MBA abroad loan.
Cost of MBA Abroad in 2025
The total cost of pursuing an MBA abroad encompasses tuition, living expenses, and travel costs. Here’s an overview of average costs by country:
These costs include tuition, housing, meals, insurance, and study materials.
For a broader perspective, check out our blog on Education Loan for Abroad Studies to compare options and make informed decisions.
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Eligibility Criteria for Education Loan for MBA Abroad
The eligibility conditions for an MBA abroad loan are similar across banks and NBFCs, with slight variations.
1. The applicant must be an Indian citizen aged 18 years or above.
2. A confirmed admission offer from a recognised international university or business school is required.
3. A strong academic record (usually 60% or above in graduation) and relevant entrance scores like GMAT, GRE, IELTS, or TOEFL.
4. A co-applicant (parent, guardian, or spouse) with regular income and a good credit score.
5. For unsecured loans, the co-applicant’s CIBIL score plays a crucial role in determining loan approval and the loan amount.
In short, candidates with strong academic performance, credible co-applicants, and confirmed admissions have higher chances of approval.
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Documents Required for MBA Abroad Education Loan
Prepare the following documents before applying to ensure quick processing:
For the Applicant (Student):
1. Completed loan application form
2. Admission letter and fee structure from the university
3. Academic transcripts (10th, 12th, graduation)
4. GMAT/GRE and IELTS/TOEFL scorecards
5. Passport and Aadhaar card
6. Proof of residence and two passport-sized photographs
7. Six months’ bank statements
For the Co-applicant:
1. Identity and address proof (PAN, Aadhaar, Passport)
2. Income proof (latest salary slips, Form 16, or ITR)
3. Six months’ bank statements
4. Relationship proof with the applicant
For Collateral (if applicable):
1. Property ownership documents
2. Recent tax receipts
3. Encumbrance certificate and valuation report
Organising these documents in advance can reduce processing time from weeks to just 7–10 working days.
Types of Education Loans for MBA Abroad
When you are applying for an education loan for MBA abroad, you’ll get the following options:
1. Secured Education Loan (With Collateral)
Requires tangible security like property, fixed deposits, or insurance policies.
- Loan amount: Up to ₹1.5 crore
- Interest rate: 8.5%–10.5% p.a.
- Longer repayment period and higher approval chances
2. Unsecured Education Loan (Without Collateral)
Based on your and your co-applicant’s creditworthiness.
- Loan amount: Up to ₹75 lakh (sometimes more for top B-schools)
- Interest rate: 11%–14.5% p.a.
- Faster approval, ideal for students without collateral
Best Lenders for MBA Abroad Education Loan (2025)
Below is a comprehensive list of the best education loan providers for MBA abroad in 2025, including banks, NBFCs, and international lenders.
Public Sector Banks (Secured Loans)
Public banks are ideal if you have collateral (property, fixed deposits, etc.) and want lower interest rates with government-backed security.
1. State Bank of India – Global Ed-Vantage Scheme
- Loan amount: Up to ₹1.5 crore
- Interest rate: 9.15%–10.15% p.a.
- Features: 15-year tenure, moratorium = course period + 1 year
- Highlight: Transparent terms and low processing fees (~₹10,000).
Best for: Students seeking large loan amounts for top B-schools like Wharton, LBS, INSEAD, or ISB.
2. Union Bank of India – Education Loan Abroad Scheme
- Loan amount: Up to ₹1.5 crore
- Interest rate: 9.5%–10.8% p.a.
- Features: No margin for premier institutions; flexible repayment up to 15 years
- Highlight: Zero processing fee for listed institutions.
Best for: Students with confirmed admission to globally ranked MBA programs.
3. Bank of Baroda – Baroda Scholar Scheme
- Loan amount: Up to ₹1.5 crore
- Interest rate: Starting at 9.85% p.a.
- Features: No collateral required for premier institutions; concession for female applicants.
- Highlight: Comprehensive coverage of tuition, travel, and living costs.
Best for: Students looking for the lowest total cost of borrowing.
Private Banks (Mixed Options – Secured & Unsecured)
Private banks offer a blend of secured and unsecured loans with faster disbursal — ideal for working professionals or students with limited time before departure.
1. ICICI Bank – Education Loan for International Studies
- Loan amount: Up to ₹1.5 crore
- Interest rate: 10.5%–12.5% p.a.
- Features: Collateral-free loans up to ₹40 lakh; digital application process
- Highlight: Tailored options for experienced professionals and GMAT scorers
Best for: MBA applicants with 2–3 years of work experience and high CIBIL scores.
2. Axis Bank – Education Loan for Overseas Studies
- Loan amount: Up to ₹75 lakh
- Interest rate: 10.85%–11.5% p.a.
- Features: Zero prepayment penalty; co-applicant flexibility
- Highlight: Instant approval for students admitted to top 100 B-schools.
Best for: Quick loan sanction before visa or admission deadlines.
3. IDFC FIRST Bank – Global MBA Loan Program
- Loan amount: Up to ₹75 lakh
- Interest rate: 11%–13% p.a.
- Features: Zero processing fee for repeat customers; doorstep service for documentation
- Highlight: Personalised repayment options aligned with expected post-MBA salary.
Best for: Students preferring a balance between flexibility and personalised service.
NBFCs (Non-Banking Financial Companies – Collateral-Free Options)
NBFCs are the go-to option for students who lack collateral or need fast approvals. Their digital-first approach ensures quick processing and flexible eligibility.
1. HDFC Credila
- Loan amount: Up to ₹50 lakh
- Interest rate: 12.75%–14% p.a.
- Features: Pre-visa and pre-admission loans available
- Highlight: Offers top-up loans for additional semesters or course extensions.
Best for: Students requiring stepwise disbursement linked to course milestones.
- Loan amount: Up to ₹50 lakh
- Interest rate: 12.25%–14% p.a.
- Features: Covers 100% of tuition + living expenses; repayment up to 10 years
- Highlight: Pre-visa loan option for faster embassy documentation.
Best for: Students applying close to visa or admission deadlines.
3. InCred Finance
- Loan amount: Up to ₹60 lakh
- Interest rate: 12%–14% p.a.
- Features: No margin money; income-based co-applicant flexibility
- Highlight: Quick approval in 3–5 working days.
Best for: Applicants needing fast, collateral-free loans for top B-schools.
- Loan amount: Up to ₹50 lakh
- Interest rate: 11.25%–13% p.a.
- Features: Custom EMI options, 100% digital process
- Highlight: Ideal for students from Tier 2/3 cities applying to global B-schools.
Best for: First-generation MBA aspirants looking for flexible co-applicant options.
International Lenders (No Collateral, No Co-signer)
International fintech lenders provide loans in USD and are ideal for students admitted to globally recognised institutions.
- Loan amount: Up to USD 100,000
- Interest rate: 11%–14% p.a.
- Features: No collateral or co-signer needed; repayment in USD
- Highlight: Loan approval based on future earning potential, not family income.
Best for: Students joining top-200 MBA programs in the US, UK, and Europe.
- Loan amount: Up to USD 50,000
- Interest rate: 12.99% p.a.
- Features: No collateral; available for 400+ institutions globally
- Highlight: Includes free career coaching and visa support for international students.
Best for: Students lacking a co-applicant or studying in the US/Canada.
Government Schemes Supporting MBA Abroad Loans
1. Vidya Lakshmi Portal: Centralised platform to compare and apply for education loans and scholarships.
2. Dr Ambedkar Central Sector Scheme: Subsidised interest for OBC and EWS students pursuing postgraduate studies abroad.
3. Gujarat Government Education Loan Scheme: 4% interest subsidy for students studying overseas.
4. Minority Education Loan Scheme: Loans at subsidised interest for minority and economically weaker students.
How to Apply for an MBA Abroad Education Loan (Step-by-Step)
Step 1: Shortlist 2–3 lenders based on your eligibility and the country of your course.
Step 2: Fill out the online loan form on the lender’s website or aggregator platform.
Step 3: Upload all documents digitally.
Step 4: Undergo credit assessment and receive approval within 7–15 working days.
Step 5: Review and sign the sanction letter.
Step 6: Disbursement is made directly to the university or in tranches as required.
Pro tip: Apply at least 3–4 months before your intake to ensure timely visa processing.
Tips Before Applying for an MBA Abroad Loan
1. Begin comparing lenders early to secure more favorable terms.
2. Check if the interest rate is floating or fixed.
3. Maintain a good CIBIL score (700+ for co-applicants).
4. Choose longer tenures if you expect a gradual increase in income after completing your MBA.
5. Confirm whether insurance and processing fees are included in the loan amount.
An education loan for an MBA abroad bridges the gap between aspiration and affordability. With options ranging from public banks to NBFCs and international lenders, Indian students can now access tailored funding for top global business schools.
Choosing the right lender depends on your course cost, the co-applicant's profile, and your repayment comfort. Start early, compare your options, and ensure full documentation — a timely, well-planned loan can make your MBA abroad journey financially smooth and stress-free.
Ready to fund your MBA abroad? Check your education loan eligibility instantly with Propelld, get collateral-free loan options with quick approvals and transparent rates. Apply with Propelld today!
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