The High-Cost MBA: How a Student Secured a ₹60 Lakh Loan for a Top Business School

Vivek had been strategising his postgraduate studies with a distinct international orientation when an invitation was offered from a renowned business school in Canada. Although the admission proved his academic competence, it also led to a significant financial choice. The total price of his MBA, including tuition fee, accommodation, travel, insurance and course materials, added up to a total of ₹60 lakh. To move forward confidently, Vivek began exploring an education loan for an MBA abroad that could realistically support such a large requirement.

Canada has always been a favourite study destination among Indian students. According to data from the Canadian government, about 1.88 lakh Indian students were admitted to study in Canada in 2024, showing the country’s continued appeal for Indian higher education aspirants. These students are distributed in undergraduate, postgraduate and professional courses, including management and business degrees.

The presence of Indians in large numbers strengthens the reason why Canada is a good choice for an MBA. Nevertheless, joining this cohort often requires careful financial planning. For many aspirants, opting for a structured education loan for high-cost MBA programs becomes the practical route to accessing globally recognised education without exhausting personal or family savings.

The MBA Investment

Pursuing an MBA from a top international institution involves a high upfront commitment. Tuition is the biggest expense at the major business schools in foreign countries, closely followed by accommodation, health insurance, academic resources, and day-to-day living expenses. For Indian students, covering this combined amount often requires an education loan for an MBA abroad, especially when the program sits in the higher cost bracket of global management education.

The reason why this investment is warranted is that the earning potential after graduation will change in a quantifiable manner. As it is reported by the Job Bank of Canada, the official labour market portal of the Government of Canada, professionals in the sphere of management and business consulting have the median annual earnings of between CAD 80,000 to CAD 110,000, or ₹50 lakh to ₹70 lakh per year, depending on the role and the province. These are some of the best roles that post-MBA graduates in internationally ranked business schools can get, and the rise in income is thus predictable as well as supported by data.

This expected salary progression is a key reason lenders are willing to support an education loan for high-cost MBA programs. When paired with a 7-year repayment plan education loan, the higher post-MBA income aligns well with repayment obligations, allowing students to manage EMIs without financial strain. In this context, even the maximum education loan for study abroad functions less as a burden and more as a structured career investment.

The Loan Structure

At the level of a loan of ₹60 lakh, the approval is not conditioned on one factor but rather on the design of the loan. Instead of treating it as a standard application, the focus here was on building a structure that matched the scale of the MBA investment and the expected post-study outcomes. This approach is common when students apply for an education loan for high-cost MBA programs at globally ranked institutions.

Collateral vs. Non-Collateral:

Most lenders lean towards collateral-backed funding. Offering collateral reduced the lender’s risk and opened access to a higher sanctioned amount. While non-collateral loans may work for smaller requirements, they are often capped well below ₹60 lakh. In this case, collateral made it possible to secure financing aligned with the full cost of the program, which is typical when applying for a loan for a top-tier business school in India, as lenders support.

The 7-Year Repayment Plan:

Instead of opting for the longest repayment tenure available, the loan was structured with a 7-year repayment plan education loan. Such a short time frame was an indication of optimism about the post-MBA earning power and served to restrain the total interest liability. It also guaranteed that repayments would be completed sooner in the career cycle, giving financial flexibility later in life.

Interest Rate Negotiation:

The ultimate interest rate was not taken at face value. The reputation of the business school, the academic profile of the student and the financial stability of the co-applicant provided space for negotiation. A slight decrease in the rate can result in huge savings during a multi-year tenure, which is very important when one is working with a big loan.

Lender Requirements for High-Value Loans

Lenders review applications much more strictly when the loan amount exceeds ₹50 lakh. These are viewed as high-risk and high-value cases with approvals having to fulfil a set of predetermined requirements. For students applying for an education loan for a high-cost MBA, understanding these requirements upfront helps avoid delays and unrealistic expectations.

Admission to a Top-Tier Institution:

For loans above ₹50 lakh, lenders usually insist on confirmed admission to a globally ranked or well-recognised business school. The placement record, alumni result, and international reputation of the institution are important as they are the direct factors that determine the employability. That is why it is more often when a loan is associated with a reputed program than with a less renowned college.

Full or Near-100% Collateral Coverage

The majority of lenders demand 100% collateral coverage or near that on high-value loans. This could be residential property, commercial property, or other acceptable assets. The collateral is used to guarantee the lender that the exposure is secured, which is not usually negotiable in this ticket size.

Strong Financial Profile of the Co-Applicant

A stable-income co-applicant with a good credit record becomes imperative as the amount of the loan is raised. Income stability and current debts, as well as repayment ability, are critically scrutinised by a lender. For a loan for a top-tier business school in India, lenders approve, the co-applicant’s profile often carries as much weight as the student’s academic credentials.

Clear Cost and Funding Breakdown

High-value loans are hardly approved without a comprehensive account of the breakdown of tuition fees, living expenses, and other expenses, and without a clear understanding of how much of it is being financed by the loan and how much by personal contribution.

The Repayment Strategy

Vivek approached repayment with the understanding that an education loan for an MBA abroad requires discipline in the early career years. Rather than rushing into heavy payments, he worked on establishing stability when he took on his post-MBA position. His plan was to keep monthly EMIs predictable and aligned with his fixed expenses, while using variable income, such as bonuses, for occasional prepayments. This meant that the total interest paid was minimised without impacting his everyday finances.

By planning repayments based on a rise in income as opposed to the stress in the short term, Vivek made managing a high-value education loan sustainable to his overall financial objectives.

Key Takeaways for MBA Applicants

For students considering an education loan for high-cost MBA programs, these practical takeaways can help avoid common funding challenges.

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  Always budget the loan based on the total cost of attending school and not the tuition fee only. Lenders evaluate the full financial requirement, including accommodation, daily living expenses, insurance, and travel. Presenting a detailed and realistic cost estimate builds credibility and reduces the risk of partial approvals.
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  Repayment tenure should align with how your career is expected to grow after graduation. Instead of automatically choosing the longest tenure available, think about when your income is likely to stabilise. A balanced tenure can ensure that EMIs are manageable as well as restrict what one pays as cumulative interest.
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  High-value loan approvals depend heavily on financial readiness. Good documentation, a trustworthy co-applicant, and collateral are usually just as important as the offer of admission itself.

Preparation on these fronts can greatly enhance your likelihood of raising the necessary capital on favourable conditions.

Conclusion

In assessing the real cost of studying abroad, picking the appropriate loan program, and realistically planning on how to repay the loan, all these steps contributed to transforming a potentially expensive degree into an attainable investment. With the right preparation, an education loan for an MBA abroad can support ambitious career goals without putting long-term finances under stress. If you’re planning a similar path, taking the first step early can make the process far smoother. Get pre-approved for your high-cost MBA loan with GyanDhan and understand your eligibility, repayment options, and funding limits before committing to your program.

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