Education Loan Options for MBA Abroad
Education Loan

Guide to education loan for MBA Abroad 2023 - 2024

Guide to education loan for MBA Abroad 2023 - 2024

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Planning to study MBA abroad? Confused about which lender to choose? Do not worry, GyanDhan has multiple lending options that can help you get an education loan for MBA abroad. Read about eligibility, requirements, process, and more.

GyanDhan
Rohit Gidwani
Updated on:  20 Nov 2023  | Reviewed By: 
Aman 
| 8.21K | 10  min read

As per the India Skills Report of 2022, MBA graduates are projected to have an employability rate of 55.09% in 2023 - 2024 and the trend will only go up, surpassing all other fields except engineering. This indicates that an MBA degree holds significant employability potential compared to other disciplines. With its global recognition, pursuing an MBA abroad is a popular choice among students. However, it's crucial to acknowledge the substantial costs associated with this program. To meet their financial requirements, many international students wisely consider education loans and thus knowing how to get education loan for mba becomes important. To ensure an informed decision about pursuing an MBA abroad, exploring the available loan options becomes imperative.

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Cost of MBA abroad

Before knowing how to get education loan for MBA it is important there are a variety of expenses on an international student’s plate even before leaving for an MBA abroad. MBA fees in foreign countries must include the pre-arrival expenses related to entrance exam registration fees, application fees, visa application fees, airfare, etc. Take a look at some of the estimated pre-arrival expenses that are part of MBA abroad for Indian students fees:

Expenses  Cost

IELTS registration

USD 250 - USD 300

TOEFL registration

USD 195

GMAT registration

USD 250

Visa fees

USD 500 (may vary depending on the country)


 

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Likewise, the tuition fee is a crucial expense to consider when applying for an MBA program abroad. To provide an overview of the average tuition fees, here is a table showcasing the costs for some of the top study-abroad destinations:

Country Tuition fee per year

USA

USD 50,000 - USD 60,000

UK

USD 38,000 - USD 54,000

Canada

USD 21,800 - USD 29,000

Australia

USD 26,200 - USD 39,000


Lastly, the cost of living is an essential expense that international students pursuing an MBA must consider, as it constitutes a significant portion of their total expenses during their study abroad period. It is crucial to account for the cost of housing, transportation, meals, healthcare, and other daily expenses when planning for your MBA journey abroad. The average cost of living for some of the popular study-abroad countries is listed in the table below:

Country Cost of living per month

USA

USD 1,000 - USD 1,500

UK

USD 980 - USD 1,420

Canada

USD 700 - USD 9,00

Australia

USD 720 - USD 980


Now that you have a comprehensive understanding of all the expenses involved, you are well-prepared to embark on your MBA journey at an international destination. If these expenses may seem daunting, there's no need to worry. Taking an education loan to finance your MBA can be a viable solution, and we have you covered. We provide a range of lending options to choose from, ensuring that you can secure an education loan that suits your needs.

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Types of education loans for MBA abroad

Broadly there are 2 types of education loans that one can take to study MBA abroad. They are - 

  • list items An education loan with collateral, also known as a secured education loan, requires the applicant to provide security or collateral as part of their loan application. This collateral can take various forms, such as residential property or other assets. To learn more about the different types of collateral accepted, you can click here for further information.
  • list items An unsecured education loan is a loan type that does not necessitate the borrower to provide collateral as security. However, due to the higher risk involved, the interest rates on these loans are usually higher. Additionally, unsecured education loans typically require a co-applicant or co-signer, and the loan amount is determined based on the co-applicant's income and CIBIL score.
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Secured education loan for MBA abroad

Secured loans require collateral, allowing for higher loan amounts and potentially eliminating the need for a co-applicant. For education loans to pursue an MBA abroad, consider SBI and UBI as public sector bank options.

Lender Name Maximum Loan Amount (in INR) Rate of Interest Margin Money

SBI

Up to 1.5 Cr

10.65% (for girls)

11.50% (for boys)

10%

UBI

Up to 1.5 Cr

9.50% - 10.80%

10%

(listed university)

15%

(non-listed university)


 


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Unsecured loan options for MBA abroad

No collateral? No problem. Private banks, NBFCs, and international lenders can help you secure an education loan for studying MBA abroad. Private banks and NBFCs may require a co-applicant with a minimum income and no liabilities, while international lenders offer loans without a co-applicant. International lenders provide loans in USD, which can save on foreign exchange charges, but their interest rates are typically higher.

Lender Name Maximum Loan Amount  Rate of Interest Margin Money

Axis Bank

Up to 50 Lakhs INR

11% - 13.50%

5%

ICICI Bank

Up to 50 Lakhs INR

10.85% - 12.50%

0 - 15%

IDFC FIRST Bank

Up to 50 Lakhs INR 

11.50% - 13.25% 

Nil

HDFC Credila

Up to 65 Lakhs INR

11.25% - 13%

Nil

Auxilo

Up to 65 Lakhs INR

11.25% - 13%

Nil

Incred

Up to 60 Lakhs INR

12.25% - 14%

Nil

Avanse

Up to 75 Lakhs INR

12.50% - 13.50%

Nil

MPOWER Financing

Up to 100,000 USD

12.99%

(for graduate programs) 

 

13.99%

(for undergraduate programs)

Nil

Prodigy Finance

Up to 100,000 USD

12% - 14%

Nil


Education loan for experienced professionals - ICICI Bank offers a loan option for applicants with a minimum of 3 years of experience, eliminating the need for a co-applicant. The loan amount and other variables remain unchanged as shown in the table above. Two additional requirements include a minimum monthly income of INR 35,000 (which may increase for higher loan amounts) and the necessity to create a Fixed Deposit (FD) to cover the total Simple Interest payable during the moratorium period, ensuring a free moratorium.

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Eligibility and documents required for education loan for MBA

The documents that will be required in order to get a loan for MBA abroad are as follows - 

  • list items Loan application form
  • list items Proof of admission: admission letter from university/institution
  • list items Fee structure from the university
  • list items Academic transcripts (School and Bachelor’s)
  • list items Standardized test scores - GMAT or GRE
  • list items English proficiency test score - IELTS, TOEFL or Duolingo
  • list items Applicant’s KYC documents
  • list items Passport-size photographs
  • list items Resident proof of the applicant and co-applicant
  • list items Income proof of the co-applicant (for unsecured education loan)
  • list items Property papers (in case of secured education loan)

To ensure a seamless process flow, there are certain eligibility criteria that you need to fulfill. These criteria include:

  • list items University admit letter with its fee structure.
  • list items The applicant has to be at least 18 years of age.
  • list items Applicant’s should have good academic experience. 
  • list items Score of GMAT and IELTS/TOEFL.  

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How to get education loan for MBA abroad?

Securing an education loan for studying MBA abroad can be a smooth process if done correctly and with the right institution. It is advisable to start the loan application process around 4 to 6 months before your desired enrollment date to ensure a hassle-free experience. Instead of managing the process independently with multiple lenders, GyanDhan offers a simplified solution for obtaining an education loan. The following steps demonstrate how GyanDhan can assist you in easily securing an international education loan for studying MBA.

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How to choose the best lender?

When exploring education loan options for MBA abroad GyanDhan offers valuable advice to assist you in selecting the most suitable loan with a minimal financial burden in the long run. To ensure an informed decision, it is essential to compare the following aspects among lenders and loan schemes:

By carefully evaluating these factors, you can select the best educational loan option that aligns with your needs and offers favorable terms and conditions.

Before initiating the education loan application process MBA abroad, thorough research and comparison of different lenders' offerings based on various factors are crucial. However, GyanDhan simplifies this process by providing direct and continuous assistance. GyanDhan’s streamlined education loan process ensures a hassle-free experience, and our expert education loan counselor will assess your academic and financial profile to discuss the best loan options. GyanDhan has partnered with multiple lenders, including government banks, private banks, NBFCs, and international lenders. Take the next step now and check your loan eligibility without delay!

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Frequently asked questions

Is doing MBA from abroad worth it?

Many individuals in the business world deem an MBA to be a valuable investment, making it a worthwhile pursuit. Moreover, opting for an MBA abroad can offer even greater benefits. The course structures overseas tend to be more practical-oriented, and the opportunities for concurrent employment during the MBA program enhance your skill set through practical application. Obtaining an MBA from abroad equips you with valuable skills and enhances your global employability. 

Who is eligible for an education loan for MBA?

In order to qualify for a student loan for an MBA program, you need to meet certain criteria. These criteria include being at least 18 years old when you apply, having successfully completed a bachelor's degree with a strong academic record, and obtaining an official admission offer for the MBA program.

Which bank is best for an education loan for MBA?

There is no definitive right or wrong answer for this, as it depends on your individual circumstances and needs. If you are able to pledge collateral, it is recommended that you opt for a secured education loan with SBI or UBI. However, if you cannot provide collateral, your preference should lean towards private banks such as Axis, ICICI, and IDFC, rather than NBFCs like HDFC Credila, Avanse, Auxilo, and InCred. Lastly, international lenders like MPOWER or Prodigy should be considered as a last resort.

What is the maximum loan amount that I can get for MBA abroad?

The loan amount is an education loan variable that depends on your application profile but in the case of a secured education loan you can get up to 1.5 Cr and in the case of an unsecured education loan you can get up to 75 Lakh INR as the maximum loan amount to pursue MBA abroad.

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