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Education Loan for MBA Overview
These are the main parameters to look at while taking an education loan for MBA
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:
MBA Education Loan EMI Calculator
Why Choose Propelld for an MBA Education Loan?
Choosing the right education loan is tough with so many options. But what makes us different? Here’s a clear, honest comparison to help you decide with confidence.
Got admission in MBA? Pay fees with an Education Loan
Education Loan for MBA: Eligibility Criteria
To qualify for an Education Loan for MBA, applicants must fulfil the following MBA Education Loan eligibility criteria:
Admission confirmation
Candidates have to provide proof of admission to a college or university.
Educational certificate
Candidates must provide their past academic qualifications certificates, including mark sheets of 10th, 12th, and graduation.
CIBIL Score
A healthy CIBIL score is important to secure an education loan with ease. If your CIBIL score is low, you might face difficulties in getting approved.
Income Requirement
While getting an education loan requires income proof, most of the time, the students might not be earning. Thus, in most cases, a co-applicant is required.
Got a low CIBIL Score? Do read how to Get an Education Loan with Low CIBIL score to support your education.
Not just that, we also have recommendations on How to improve CIBIL Score that you might find useful.
Get Approved Based on Your Potential. Explore Flexible Eligibility Criteria for Education Loans.
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
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.
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
Education Loan for MBA: Eligibility Criteria
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 loan.
Got good marks in 12th and graduation? - Get low interest education loan approval for MBA
How to Apply for an Education Loan for an MBA in India?
Several banks and NBFCs provide education loans with flexible repayment options.
How to Get an Education Loan for an MBA in Simple Steps?
Here are the simple steps to get an education loan for an MBA:
- Check Eligibility – Ensure admission to a recognized MBA college and meet lender criteria.
- Choose a Lender – Compare banks, NBFCs, and fintech lenders for the best terms.
- Gather Documents – Collect KYC, admission letter, academic records, and income proof.
- Apply for Loan – Submit your application online or at a bank branch.
- Processing & Approval – Lenders verify documents and assess financial background.
- Loan Disbursement – Funds are sent directly to the institute, covering tuition and 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 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.
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.
How 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 improves loan approval chances. So, regularly check and maintain a good score.
Here are some more tips on How to Improve your Credit Score.
Choose a High-Income Co-Signer
A financially strong co-signer with a stable income and good credit history can improve approval chances and secure better interest rates.
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 necessary documents in place. This speeds up processing and strengthens your application.
Check the complete details about documents required for an education loan here.
Pay off Existing Debts
Clear outstanding loans. Fewer debts show financial stability, making lenders more likely to approve your loan.
Following these tips will improve your chances of securing an education loan.
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.
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