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Education Loan for MBA: Highlights
These are the main parameters to look at while taking an education loan for MBA
Apply for Education Loan For MBA
- Loan up to Rs. 50 Lakhs for 10 Years
- No collaterals required
- Higher approval rates
Education Loan for MBA Interest Rate
While banks provide interest rates ranging from 9% to 15%, NBFCs offer from 10% up to 15%, but with much flexible terms and easier processes.
The interest rates also depend on multiple factors like the candidate profile, potential, the college rating etc.
You can compare different lenders providing education loan for MBA and their interest rates below:
Banks Education Loan for MBA Interest Rates:
NBFCs Education Loan for MBA Interest Rates:
Get Your MBA Education Loan Disbursed 10x Faster than Banks. Check Your Interest Rate Now!
MBA Education Loan EMI Calculator
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Expenses Covered in MBA Education Loan
An education loan is not just about tuition fees. There are many other expenses that take up a large space in the pie chart of education expenses. Thus, most lenders today cover all these aspects too in their offerings.
Here is a look at the essential expenses covered in education loan:
Tuition Fee
Living Expense
Travel Expense
Health Insurance
Admission confirmation
Educational certificate
CIBIL Score
Income Requirement
Why Should You Take an Education Loan for MBA?
An education loan for an MBA can go a long way in shaping your future, all the while saving your finances too. Here's why it’s a smart investment for your career growth:
- Invest in Your Future: An MBA loan helps you access quality education without financial strain.
- Be Independent: With an education loan, you can complete your MBA education independently and without hitting on your parents’ savings.
- Boost Career Prospects: A degree from a top institution can significantly enhance your job opportunities. MBA top colleges have high fees that can be taken care of by education loan.
- Flexible Repayment Options: Low-interest rates and easy repayment terms make loans manageable.
- Moratorium Period: With a moratorium period provided by most lenders, you have enough time in hand before you start earning and repaying the loa
Got good marks in 12th and graduation? - Get low interest education loan approval for MBA
Documents Required to Apply an Education Loan for MBA
Most lenders require the following documents for an Education loan:
Requirement of documents varies across lenders. Traditionally banks asked for a large number of documents, which, thankfully, the new age NBFCs have minimised.
Get an MBA Education Loan that Requires less documents
How to Apply for Education Loan for MBA in India?
Several banks and NBFCs provide education loans with flexible repayment options.
Steps to Apply for an Education Loan for MBA
1. Check Eligibility Criteria
Lenders have specific eligibility criteria as follows:
- Admission to a recognized MBA college in India
- Co-applicant (for unsecured loans)
- Indian citizens are eligible.
- A minimum of 50% marks in 10th, 12th, and graduation.
2. Choose the Right Lender
Compare education loan offers from banks, NBFCs, and fintech lenders based on interest rates, repayment terms, and other key factors. Leading banks like the State Bank of India, ICICI Bank, and Bank of Baroda offer well-known loan schemes, while NBFCs such as Propelld provide competitive rates and flexible repayment options, making them strong alternatives.
3. Gather Required Documents
Common documents required:
- Admission letter from the MBA institute
- KYC documents (Aadhar, PAN, etc.)
- Academic records
- Income proof of co-applicant
- Collateral documents (if applicable)
4. Apply for the Loan
You can apply online or visit a branch to submit your loan application.
5. Loan Processing and Approval
The lender will verify your documents, check your academic and financial background, and approve the loan accordingly.
6. Loan Disbursement
Once approved, the loan amount is disbursed directly to the institute. Some lenders also provide additional funds for living expenses.
Education Loan for MBA: Loan Repayment
Mostly, an education loan repayment starts 12 months after finishing the course or 6 months after getting a job. This period is known as “Moratorium”. Here are the major details about education loan repayment that you must know:
- Repayment period starts after the moratorium period ends.
- It can range from 1 to 9 years.
- Longer repayment period provides relief from financial burden and Income tax. However, it's advisable to keep a shorter repayment period to reduce the interest levied.
- Some lenders may also provide interest rates benefits on shorter repayment periods.
- Opt for a loan that provides a higher amount for a lower interest rate and easy repayment terms.
- Once the repayment period starts, you can repay the loan amount through internet banking, paying cheques at the bank, direct EMI auto-debit from bank account, or using a demand draft issued by the bank.
- However, the best repayment option is Auto Debit of EMI.
- Keep an EMI date ideally 7 days after the salary or income date.
Want to know further? Do explore Education Loan Repayment Rules in India 2024. This resource provides information on the loan repayment process rules and regulations.
Education Loan for MBA without Collateral
Most banks and financial institutions offer MBA education loans, but there are collateral requirements in some cases.
What is a Collateral?
Collateral is an asset or property that a borrower offers to a lender as security for a loan. If the borrower fails to repay the loan as agreed, the lender can seize the collateral to recover the owed amount.
- Public banks offer education loans above ₹7.5 lakhs for MBA without collateral.
- Private banks also provide collateral-free loans if fees are under ₹40 lakhs and the institute is premium (like IIMs or ISB).
- Even for top institutes, the maximum collateral-free loan is ₹1.25 crores.
- Banks have strict criteria for no-collateral loans, but NBFCs offer more flexible options.
If your MBA institute isn’t premium and fees exceed ₹7.5 lakhs, banks require collateral. However, NBFCs can offer higher loan amounts without collateral.
Explore and Apply for No Collateral Instant Education Loans.
Education Loan for Executive MBA
An education loan for an Executive MBA (EMBA) is designed to help working professionals finance their higher education without disrupting their careers. Since EMBA programs are typically more expensive than regular MBA courses, many banks and NBFCs offer specialized loans with flexible repayment options.
Here are some key features of an Executive MBA loan that make financing your education easier and more flexible:
Key Features of an Executive MBA Loan:
- Higher Loan Amounts: Covers tuition fees, study materials, and sometimes living expenses.
- Flexible Repayment: Options like moratorium periods allow repayment after course completion.
- Collateral-Free Loans: Many lenders offer unsecured loans for eligible candidates.
- Customized Interest Rates: Depending on the applicant’s credit profile and employer reputation.
Executive MBA aspirants should compare lenders to find the best financing option that aligns with their financial goals and repayment capacity.
Early Repayment
Interest Benefits
Loan Selection
Loan Coverage
Tips to Secure an Education Loan for MBA with Higher Chances of Approval
Getting an education loan can help make your dreams of studying further a reality. To increase the chances of your loan being approved, here are five simple tips:
Have a Good Credit Score
A high credit score reflects that you are trustworthy with money. Check your credit score regularly and work to keep it high by paying off debts on time. This applies to you and your co-applicant, as lenders consider both scores when deciding your loan approval.
Here are some more tips on How to Improve your Credit Score.
Choose a High-Income Co-Signer
Having a co-signer who has a stable income and good credit history can improve your chances of approval. A financially strong co-signer may also get you better interest rates and repayment options for an Education Loan for MBA.
Most banks only consider parents as your co-signer while we consider your siblings, maternal or paternal uncle/aunt. Do explore and apply for a flexible Education Loan Here!
Gather all Required Documents
Ensure you have all the necessary documents, such as admission proof, identity and address proofs, academic records, and financial statements. This will help make your application process faster and smoother and give lenders confidence in your preparation.
Check the complete details about documents required for an education loan here.
Pay off Existing Debts
Clear any existing loans or credit card balances as much as possible before applying. When lenders see that you have fewer debts, it shows that you are financially stable, which increases your chances of getting the loan.
With these tips in place, you can ensure to have a higher chance of loan approval. Also, you must read about the most common mistakes while taking an education loan, if you want to make a prudent decision.
Government Schemes Providing MBA Education Loans
To make MBA education more affordable for everyone, various government-backed schemes are available to support education financing. These schemes offer attractive interest rates, flexible repayment options, and additional benefits.
Check out the complete details of these schemes:
Central Sector Interest Subsidy Scheme
- Central Sector Interest Subsidy Scheme is offered by major banks like SBI, PNB, and Bank of Baroda, providing full interest subsidy during the moratorium period.
- Students from EWS with an annual income of up to 4.5 lakhs can apply.
Vidya Lakshmi Scheme
- Vidya Lakshmi Scheme is supported by banks like ICICI Bank, HDFC Bank, and Axis Bank, providing a single-window platform for loan applications.
- Indian students who have passed 12th grade can apply.
JanSamarth - National Portal for Government-Sponsored Loans
- JanSamarth-National Portal for Government-Sponsored Loans is a unified digital platform connecting students with banks like SBI, Canara Bank, and Bank of India for government-sponsored education loans.
- Students aiming to pursue technical or professional courses in recognised institutes in India.
Watch Out This Video for a Complete Guide on MBA Education Loan
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