Education Loan

Education Loan for MBA in India

Education Loan for MBA in India

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Explore how to get education loan for MBA in India, comparing top lenders, interest rates, and eligibility criteria for aspirants.

GyanDhan
Rohit Gidwani
Updated on:  28 Feb 2024  | Reviewed By: 
Aman 
| 85 | 6  min read

Securing the funds for an MBA in India is a crucial step that often seems daunting to many aspiring leaders and entrepreneurs. This blog aims to bridge the gap between your academic aspirations and the financial resources needed to fulfill them. With a maze of options and criteria to navigate, finding the right education loan can feel overwhelming. Here, we've distilled essential information to simplify your search. From outlining the costs of top MBA programs to comparing lender options and understanding eligibility, we're here to guide you through making an informed decision. Let this be your starting point towards achieving your dreams without the financial worry holding you back.

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Cost of Studying MBA in India

Pursuing an MBA in India is a coveted dream for many, offering a gateway to numerous career opportunities and leadership roles in the business world. The general cost of studying an MBA in India varies significantly based on factors such as the prestige of the institution, location, and the type of program. On average, students can expect to invest anywhere from INR 7,50,000 to INR 25,00,000 per annum, covering tuition, books, accommodation, and other associated costs. This range accommodates both public and private institutions, with some of the top business schools commanding higher fees due to their renowned faculty, extensive alumni networks, and superior placement records.

To provide a clearer picture, here's a breakdown of the annual tuition fees for MBA programs at five of the top colleges in India:

College Name Annual Tuition Fee (INR)

Indian Institute of Management (IIM) Ahmedabad

23,00,000

Indian Institute of Management (IIM) Bangalore

23,00,000

Indian Institute of Management (IIM) Calcutta

22,00,000

Faculty of Management Studies (FMS), Delhi

1,92,000

Xavier Labour Relations Institute (XLRI), Jamshedpur

20,00,000

Check Your Education Loan Eligibility

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How to Get Education Loan for MBA in India?

To learn how to get education loan for MBA in India, explore offerings from both public and private sector banks, as well as specialized Non-Banking Financial Companies (NBFCs). Public sector banks like State Bank of India, Punjab National Bank, and Canara Bank, among others, are traditional choices offering competitive interest rates and terms. Private sector banks such as ICICI Bank, Axis Bank, and Kotak Mahindra Bank also provide tailored MBA education loans with varying benefits.

Additionally, NBFCs like HDFC Credila Financial Services Limited and Avanse Financial Services specialize in education loans and may offer more flexible options tailored to individual needs. It's crucial to compare the interest rates, repayment terms, and additional charges of these various lenders to find the most cost-effective loan option. Thoroughly prepare your documentation, including admission letters, academic records, and financial proofs, to streamline the application process. Addressing the differences in interest rates among these options will be key to minimizing the overall cost of your MBA education loan.


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Lending Options for MBA Education Loan

Navigating how to get education loan for MBA in India can be complex, with various lending options available to prospective students. This section delves into the diverse range of lenders offering education loans for MBA studies, including public sector banks, private banks, and specialized NBFCs. Each lender brings unique advantages, interest rates, and loan terms, making it crucial to assess and compare to find the best fit for your educational investment.

Lender Name Max Loan Amount Interest Rate

SBI

Up to INR 30 Lakh 

8.05% -10.15%

UBI

Up to INR 30 Lakh 

8.65% onwards

Axis Bank

75

8.8% onwards

ICICI Bank

50

10.5% onwards

HDFC Credila

45

8% onwards

Avanse

Up to 100% cost to study

10% onwards

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Education Loan for MBA in Indian Eligibility Criteria

To qualify for an MBA education loan in India, candidates need to adhere to specific eligibility standards:

  • list items A minimum 60% GPA is required for graduation.
  • list items Educational history must be continuous without any breaks.
  • list items The credit score of the co-signer needs to be above 700.
  • list items For any educational interruptions, candidates are required to present a medical certificate or similar justification.
  • list items While the Reserve Bank of India doesn't enforce age restrictions for education loans for MBA programs, certain banks might limit applicants to under 35 years of age.

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Education Loan for MBA in Indian Documents Required

For the application process of an MBA education loan within India, individuals are expected to provide digital versions of certain documents:

  • list items Educational documents from the 10th standard up to the latest qualification.
  • list items Identification proof such as PAN card, Aadhar card, Passport, or Voter ID card.
  • list items Various acceptable proofs of residence including electricity bills, ration cards, Aadhar cards, bank passbooks, or voter ID cards.
  • list items Six months' bank statements from the co-applicant.
  • list items Income Tax Returns for the last two years.

Check Your Education Loan Eligibility

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How to Choose the Best Lender?

When considering education loans for an MBA in India, it is recommended to compare the following key aspects among lenders and loan schemes to ensure a favorable decision:

Alright, diving straight into the heart of it – thinking about doing an MBA in India is pretty exciting, right? But let's face it, figuring out how to fund it can be a bit of a head-scratcher. This guide’s got your back, making the whole "How to get education loan for MBA in India?" question a lot less daunting. We've sifted through the finance stuff, from breaking down costs to shining a light on the best loan options out there. And hey, if you're dreaming bigger and eyeing an MBA abroad, GyanDhan is like that knowledgeable friend ready to help you sort out your finances. Ready to make those MBA dreams happen? Reach out to GyanDhan and start your journey with a solid plan in place.

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Frequently Asked Questions

Are there specific banks that offer lower interest rates for MBA students from premier institutes?

Yes, financial institutions often provide differential loan interest rates for students admitted to premier institutes like the IIMs, offering lower rates compared to other MBA colleges. This is because the reputation of the college and the expected return on investment play a significant role in the loan terms offered.

Can I apply for an MBA education loan online?

Yes, the process of applying for an MBA education loan has become more accessible and can be initiated online. Many banks allow students to apply through their websites, where you can fill out the application form, submit required documents, and follow up on your application status.

What are the repayment terms for MBA education loans?

Repayment of MBA education loans typically starts one year after course completion or six months after securing a job, whichever comes first. The repayment period can range from 5 to 15 years, depending on the lender's terms and conditions, and there may be benefits like a moratorium period during which no repayment is required.

Is there any collateral requirement for MBA education loans?

The need for collateral depends on the loan amount. For loans up to a certain threshold (usually around Rs. 4 lakh), no collateral is required. For higher amounts, banks may require a third-party guarantee or collateral. However, some specialized loan schemes for students of certain premier business schools may not require any collateral.

Can I get an education loan for MBA without having a co-borrower?

Having a co-borrower is a common requirement for higher loan amounts, especially for unsecured loans. However, some lenders might offer loans without a co-borrower for lower amounts or to students with an excellent academic record and admission to top-tier institutions.

Check Your Education Loan Eligibility


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