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Education Loan For MBA: Everything about MBA Education Loan

The MBA is the most popular master’s degree among Indian students, with over 2,10,000+ aspirants appearing for CAT, with approx 30,000 GMATs working in India.

The decision to pursue an MBA requires a significant amount of financial planning due to the rising cost of education.

An MBA is an expensive program and it is difficult to pursue your MBA education without finding ways to finance an MBA.

Now, most of the top MBA colleges have increased their MBA fee. Therefore, funding your MBA is a major area that you have to think about before taking admission in MBA college.

The MBA tuition fee for top B-schools like IIM, MDI Gurgaon, XLRI Jamshedpur is between Rs. 18 lakhs to Rs. 22 lakhs.

When you have applied for an MBA and are eagerly awaiting your offer letter, use this time in free time to do thorough research about education loans.

In addition to this tuition fee, you will have to pay other expenses like living expenses during your MBA program, onboarding, and personal expenses.

About 80% of MBA students take education loans. Therefore, planning and securing your education loan for MBA is as important as getting admission yourself! This article from MBAUniverse.com will help you understand about MBA education loan.

If we think of a well-planned and sound process, we can not only get the money required to pursue our dream MBA but also save a lot of money while studying.

Today, loans for MBA courses are available with almost all major banks. Some banks also have tie-ups with some major institutions. These banks offer a special rate of interest to the students which are normally lower than the interest rate. You may have some apprehension that education loans are complicated monsters. But don’t worry.

There are Various education loan options, steps to get education loans from various nationalized and private banks for top MBA loan providers and MBA education.

Eligibility For MBA Education Loan

You can visit your bank and discuss your educational loan requirement to do MBA. Your selection letter should be issued by the institution from which you intend to do an MBA and your educational qualification starts from 12th standard. The basic criterion about the qualification is that the candidate must have a consistently excellent academic record (first class). The credit manager or branch manager will tell you the security requirement based on the amount of loan required, your margin contribution, rate of interest and repayment, etc.

Age Eligibility Criteria For MBA Education Loan

  • The age of the joint applicant / co-borrower / guarantor should be a minimum of 21 years at the time of loan origination and the maximum age at the time of loan maturity can be 70 years.
  • There are no special restrictions regarding the age of a student to be eligible for an education loan.

Student Eligibility For Education Loan

  • The student must have gained admission in India or abroad through an entrance examination or through a merit-based selection process.
  • The student must be an Indian national.

Institute’s eligibility for Education Loan

  • International colleges and universities
  • Professional institutions
  • Recognized institutions and government colleges
  • Private institutes aided by government

In such cases, some private banks and education loan providers such as Credila and Avance may also call themselves students. Contact details of students are often shared by the institution with the banks and loan providers they collaborate with. This makes easier because the bank can sometimes come to the customer’s doorstep to complete the loan processing formalities.

Expenses covered under Education Loan

Apart from tuition fees, the student has to face other expenses during the MBA. An education loan covers full of the basic course fee.

One of the loan schemes offered by the State Bank of India (SBI), called the SBI Global Ed-Vantage Loan Scheme, provides loans to students ranging from Rs. 20 lakhs to Rs. 1.5 Crore with 9.5% to 10% interest rate. Under the SBI Global Ed-vantage Scheme, one can get 90 percent coverage for expenses like tuition fee, entrance fee, etc. and the remaining 10 percent should be borne by them.

Generally, the bank can also cover other related expenses while lending, such as:

  • Examination, Library and Laboratory fees
  • Fee payable for college (tuition fee) and hostel
  • Books, equipment and other study material
  • Expenses for traveling abroad, money spent
  • Purchase of laptop, the computer is necessary for the completion of course
  • Refundable deposits backed by caution deposits, building funds, institution bills or receipts.
  • Even the cost of a two-wheeler is covered as part of the education loan by leading banks.
  • Any other expenses required to complete the course – such as study tours, project work, thesis, etc.

Documents required to Apply for MBA Education Loan

  • Loan application in bank’s format
  • Passport size photos
  • Address and age proof if you are not an existing bank
  • Proof of admission to the course
  • Customer copies of mark sheets in the qualifying exams
  • Schedule of expenses for the course (course prospectus where the course fee is mentioned)
  • Statement of Bank account for the last six months of borrower/co-borrower
  • Income tax assessment order not more than two years old (students or parents’)
  • A brief statement of assets and liabilities of the borrower.

Fee Structure of MBA

S.N. Colleges Name Fee in Lakhs
1. XLRI Jamshedpur 23
2. IIM Ahmedabad 22
3. MDI Gurgaon 21.34
4. IIM Bangalore 21.2
5. IIM Calcutta 21.1
6. SIBM Pune 18.88
7. IIM Kozhikode 17.5
8. IMT Ghaziabad 17.5
9. IIFT Delhi 17.25
10. IMI New Delhi 16.95
11. SPJIMR Mumbai 16
12. IIM Lucknow 16
13. K J Somaiya Mumbai 13.66
14. IFIM Bangalore 12
15. IFMR Chennai 12
16. IPE Hyderabad 8.15

MBA Education Loans Choices

You have a number of MBA education loan options. However, at different interest rates, the cost of these MBA education loan options can go up or down and you have to take care of this problem.

Education loans for MBA in India are given by public sector banks like State Bank of India, Punjab National Bank, Central Bank of India, Punjab & Sind Bank, Dena Bank, Canara Bank among other banks.

Another MBA education loan option is to obtain education loans for MBA from private banks such as ICICI Bank, Axis Bank, Kotak Mahindra Bank, and Non-Banking Finance Companies (NBFC), such as Credila Education Loan, among others. Avance Financial Services.

This is important that most financial institutions offer differential interest rate schemes for education loans for MBA.
Education loans for IIMs and higher ranked MBA colleges are generally available at lower rates than lower-ranked colleges.

 

Loan Providers in India to Study MBA

The list of MBA education loan provider in India is mentioned below including interest rate, loan amount and repayment tenure.

Allahabad Bank Education Loan

The educational loan scheme aims to provide financial assistance from the banking system to meritorious students for pursuing higher education in India and abroad.
The PA meritorious student, though poor, is provided with the opportunity to pursue education with financial support from the banking system, with affordable conditions and conditions.

After completion of HSC (10 plus 2 or equivalent), one should get admission in higher education course in India or recognized institutes through entrance test / merit-based selection process.
Where the admission is purely on the basis of marks obtained in the qualifying examinations, the cut-off mark for credit eligibility is 50%.
Meritorious students admitted under the management quota are also eligible for the loan.
Studies in India (Indicative List):
UGC / Government recognized course. / AICTE / AIBMS / ICMR etc.
Study Abroad:
For job oriented professional/technical courses offered by reputed universities.

Fees payable for college/school/ hostel and other related expenses.
Study in India:
Up to Rs.75 lakhs depending on the institute. (The list of institutions is available on the bank’s website.)
Study Abroad:
Rs. 75 lakhs.

The loan documents must be jointly executed by the student and parent/guardian as the joint borrower.
If his or her income is considered for eligibility, the spouse must be a co-borrower. No collateral, no guarantee.
Up to Rs.4 lakh – No collateral security
Above Rs.4 Lakh – Security (depending on course/institutes) varies from third party guarantee, parental no-obligation, full collateral security.

up to 15 years

Axis Bank Education Loan

Axis Bank brings you education loans for studies in India and also in abroad. Maximum up to Rs 50,000. 75 lakhs, at attractive interest rates. With an Axis Bank Education Loan, you can enjoy many benefits such as simple documentation, quick loan disbursement, tax benefit U / S 80 (E), long repayment period, and more.

  • Indian Citizenship
  • Secured at least 50% marks during HSC & Graduation
  • Who have obtained admission to career-oriented courses e.g. Medicine, Engineering, Management etc., either at the graduate or post-graduate level
  • Secured admission in India or Abroad through entrance test / merit based selection process post completion of HSC (10+2)
  • Documents displaying regular income is mandatory for the co-applicant( parents/sibling/guarantor)
  • KYC documents
  • Bank Statement / Pass Book of last 6 months
  • Optional – Guarantor Form
  • Copy of admission letter of the Institute along with fees schedule
  • Mark sheets / passing certificates of S.S.C., H.S.C, Degree courses
  • Demand letter from college or university
  • Loan agreement signed by applicant, co-applicants
  • Sanction letter signed by applicant, co-applicants
  • Disbursement request form signed by applicant, co-applicants
  • Receipts of margin money paid to the college / university along with bank statement reflecting the transaction
  • Documents for collateral security (if applicable)
  • Form A2 signed by applicant or co-applicants in case of overseas institute
  • Up to 4 Lakhs – 15.2 %
  • 4 Lakhs to 7.5 Lakhs – 14.7%
  • More than 7.5 Lakhs – 13.7 %

Axis Bank provides education loans to students belonging to economically weaker sections as per the interest subsidy scheme of the Central Government. Get more information about education loan subsidy scheme offered by Axis Bank below:

Government of India, Ministry of Human Resource Development has given letter no. F. 11-4 / 2010 – U.5 (i) dated 25 May 2010 plans to provide full interest grant during the period of moratorium, ie the duration of the course and after one year or six months, whichever is earlier. The scheme is available for education loans belonging to Economically Weaker Sections (EWS) (where the annual parental income from all sources is up to Rs 4.5 lakh), which is under the Model Educational Loan Scheme approved by the IBA, to pursue any for. Approved courses of study in technical and professional streams from recognized institutions in India.

Salient Features of Education Loan Subsidy Scheme:

The scheme is applicable to all students who meet the eligibility criteria of the IBA approved Model Educational Loan Scheme, subject to compliance with the terms of the Interest Subsidy Scheme. The scheme is applicable only for studies in India and is available for educational loans up to Rs. 7.5 lakhs.

The amount of disbursement made on or after April 1, 2009, will be borne by the Government of India while the interest payable by the student related to EWS and satisfying the eligibility criteria of the scheme.
Under this scheme interest subsidy will be available only once to eligible students – for undergraduate courses or postgraduate degree / diploma courses in India. Integrated courses (combined undergraduate plus postgraduate) will also be considered under the scheme.
The interest subsidy under the scheme will not be available to those students who discontinue the course midway, or who are expelled from institutions on disciplinary or educational grounds. Interest grant is allowed, in case of exemption on medical grounds for which necessary documents are submitted to the satisfaction of the head of the educational institution.
For the purpose of this scheme, the State Government has designated a competent authority or authority to issue income certificate based on the economic index and social background.
The interest rates charged on the loan will be as per the interest rates applicable under our education loan subsidy scheme.
The list of recognized universities / institutes and recognized vocational courses, which are administered by the Ministry of Tourism and are eligible for interest subsidy scheme, has been updated on our website. To see the list,
The list of technical / professional courses for which the scheme is applicable will be promoted from time to time by the UGC and AICTE and will be immediately displayed on their websites, which can be accessed for verification purposes.


The following documents should be submitted at the time of sanction of loan: Income certificate issued by the appropriate authority / authorities specified by the concerned State Government.

Bonafide Student Certificate: If the student is qualifying for the subsidy scheme, the interest subsidy agreement, the Letter of Undertaking Less Declaration, needs to be signed by the borrowers.

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Course Management Course mba

Why MBA? 20 reasons to choose MBA. Why MBA is best?

Why MBA (Masters in Business Administration)?

The reason why to choose MBA? As soon as graduation is over, individuals seek a suitable post-graduation course. MBA (Masters in Business Administration) is one of the most post-graduation programs. We have come across many people who jump to get admission in top B-schools, but fail to answer a simple question – Why MBA.

Despite the specialization, an MBA degree provides training in various aspects of the business. But then, it is perfectly okay to know that “Why MBA” should be next on your card after graduation.

why-mba

When graduates or working professionals evaluate the value of an MBA program, the best possible reasons that come to mind are combining business skills to resume, maximize potential, and increase the number of opportunities.

Why MBA is important for Better Career?

Your career starts mostly in an operational role. After working smartly and putting in hours of hard work, you are given a promotion. Now after promotion, you have good work experience and academic profile, but sometimes the bottom line seems to be stable. This is where an MBA degree comes in handy; You can change your career path or move to a much higher profile with bigger responsibilities.

An MBA degree is a post-graduation degree that enhances your skills to select in a related field. It is not just for marketers and can be adopted for other streams as well. There are many intensive universities that offer Masters in Business Administration courses in India. Here are the top 20 reasons why you should pursue an MBA in any specialization of your choice?

1. Better job prospects

Most of the students choose the Masters in Business Administration program over other postgraduate courses. The scope of subjects covered during an MBA provides an opportunity to learn about a wide variety of subjects that cater to various aspects of business structure and administration.

It provides guidance on the correct methodology and approach to deal with various corporate situations. Thus a Masters in Business Administration can be a useful degree to move up the corporate ladder.

Then, a person who has been in a particular profession for many years and now wants to take a management position in the same field can do so through a Masters in Business Administration. This would be equivalent to a better pay package.

There can be upper-level recruitments to do Masters in Business Administration from a good university, which will provide them excellent job opportunities throughout their career.

2. Career Change

In today’s competitive corporate world, a person has a difficult time managing the workplace or business deadlines.

After a few years of being employed or self-employed, a person may experience burnout and long for a well-deserved break for introspection and a future course should decide his or her career- What should be the path.

An MBA provides the right platform for this decision-making process and helps one choose among the post-MBA options.

Read Also: Management Course After 12th Details, Duration, Scope, and Salary

3. Brand Building

Some B-schools have a strong brand name. This may be due to the success of the program that has consistently maintained high standards.

The program may be the oldest and can, therefore, evolve in many ways, which means better training materials, better faculty, better placement opportunities, and stronger networking relationships within the industry.

The achievements of alumni also go a long way in building the reputation of B-school. Engagement with these brands can pave the way for various opportunities and can be the key to a successful and rewarding career.

4. MBA degree boosts your confidence

One of the best reasons to pursue an MBA is that it helps build your confidence. The feeling of completing and completing a business post-graduation program can instill a sense of confidence that is critical to corporate success.

Today in the corporate world, companies need managers or management trainees who are not only confident and able to take initiative but also team players, who can boost team morale for better productivity. With an MBA degree in hand and a well-balanced work-social life, you will definitely gain a sense of accomplishment, which, in turn, will boost your confidence for good.

5. Improve your Knowledge

A major reason for students pursuing an MBA in their specialization of choice is to increase their knowledge in the domain. Finance, Marketing, International Business or Entrepreneurship – Pursuing an MBA in any of these specializations will help you gain theoretical and practical knowledge, which will help you understand how businesses operate. So when you wonder why you have an MBA in Marketing, Finance or IT, you can understand that having a specialization degree will give you an edge of skills and knowledge over non-MBA degree applicants.

Without knowledge, you would only be shooting in the dark without any idea of ​​the consequences. Whether you are looking at professional development in your current company or want to establish a network for your own business, knowledge in your area of ​​expertise can really be the difference between success and catastrophic failure.

6. Team Building

MBA is one of the most important qualities for job success and career development. Leading a team and motivating them to deliver results is a core component of any organizational development. This is the team that eventually succeeds, and in order for the team to reach its goal, the best of each member must come out. It is only through a good leader. A good MBA program develops leaders in person. It is not uncommon to hear the stories of Harvard, IIM and Wharton MBA Pass, who have built a small business for large organizations

7. Networking

An international MBA program has great diversity in terms of students coming from different cultural backgrounds and nationalities.

This vast mix of students would mean developing contacts in each of these countries. During various social meetings, the student gets ample opportunities to develop contact with alumni and pursue other courses along with the students.

There are also various guest lectures by successful entrepreneurs, CEOs to share their success stories. Many times students also get a chance to interact with them. The type of MBA offering is unmatched in the context of the networking sector.

8. Change of Geography

There are instances when you wanted to go to work in Australia or Canada or any other foreign country. In your current role, you may be able to move into an international market as a C ++ coder but certainly not as a project manager.

An MBA tells Stanford or INSEAD that you can help them understand the foreign market well, enhance their international network, learn about the requirements for an international career, and a completely different culture and way of life.

Do you recognize some of the reasons why you should do MBA? At the end of the day, it’s about your passion, your career, and your long-term goals. Before you think about applying anywhere, analyze why exactly you want to do an MBA and express it well in your essays and interviews.

9. Management Skills

An MBA degree not only equips the student to become a better manager or entrepreneur but also provides soft skills, teamwork, risk-taking, including leadership qualities, adapting to and experimenting with new cultures, places or situations.

The broad range of subjects that an MBA student covers during their course provides a fresh perspective and a broader perspective of the business or corporate world.

10. Improve Employability

An MBA degree on your resume increases the likelihood of organizations being employed. In numerous studies and independent surveys, it has been found that most companies, no matter what, employ MBA graduates every year in their industry. After doing your MBA, you can work for some of the top organizations and companies in the world.

Pursuing an MBA brings you to the path of thought leadership where you are able to think strategically, improve products and services, optimize resources and contribute to operational growth. If you are an MBA graduate from one of the top B schools, you will not have to look for a job option – companies and recruiters will contact you and fight to get you on board.

Another common trend in the corporate sector has been seen that doing an MBA also increases your salary. There is no growth, but most companies value MBA graduates and offer increased salary and compensation packages to these individuals. Needless to say, the MBA also helps you in your professional development.

11. Credibility

There are different ways that you can establish credibility in your firm and in your industry. You can work in a project that moves you beyond your comfort zone and shows your hidden talents to company management. You can start a single side business or co-founder with family or friends to establish initial credibility as a budding entrepreneur. But the academic version of road credibility in the business world is an MBA degree.

12. MBA Course Increase Creativity

Research for an MBA may be based in fact and number, but the entire experience often spurs creative thinking and inspires creative efforts for MBA graduates. Thinking outside the box is as important for business as it is for art or music.

13. Curiosity After Management Courses

MBA graduates often have an innate and unquenchable curiosity. They know that there is always something else to learn, and they try to learn it. Earning a degree enhances their ability to dig into competitive analytics, study emerging industries, and stay on top of all the latest developments, technologies and trends in their industry. As Albert Einstein said, “The important thing is not to stop questioning.” Curiosity has its own reason for existing.

14. Higher Income

Many people typically enter MBA programs, but since high income and signature bonuses are definitely some of the most important benefits of earning your MBA, we thought it should be included in this list!

Talent and abilities are always rewarded in the corporate sector, but the trend has shown that during 2017 top B-school placements boast of a higher package of MBAs with an average of 16 – 24 lakhs.

15. Strategic Thinking

The strategic thinking skills you learn while learning your MBA applies not only to the business world but to different areas of your life such as your personal goals and finances. When you work to fix a problem, you can think outside the box and weigh several options or solutions in your mind.

16. Entrepreneur Ability

There are many scenes in the current era of digital start-ups, which are fired with the excitement of setting up their organizations. This becomes much easier if one has experience and background in working in the corporate sector. An MBA degree helps in gaining technical and theoretical knowledge of subjects such as marketing, human resources, operations, project management, and channel management.

17. Better Communication

MBA graduates often communicate better working with colleagues, bosses, or employees. But these communication skills can apply to your significant other, children, parents or siblings, as well as in social situations such as networking events or company functions.

Being a better communicator is essential in everyday life, no matter where or when you communicate your needs and ideas for a solution.

18. Removing Growth Barriers

Having a management degree is an additional weapon, which helps in promotion and consideration of high positions in the corporate structure. Qualified people may be overlooked due to lack of an MBA degree as it is an organizational policy. In 2017, approximately 7% of MBA students received an immediate placement.

19. More Job Opportunity

More openings are available for MBA candidates than non-MBA. In the job description, it is very common to see the term – MBA preferred. This is also the norm in small companies.

20. Higher Social Prestige

In addition to job reasons, it also has a social reputation value. In countries like India, MBA is a good value for the wedding market as well as for the prospective bride and groom – in a mild vein of course!

Pursuing an MBA is an expensive process that also requires effort and time. So, take a step back and think – “Why MBA” and how it can make a difference for you. After all, without a career goal and realizing your aspirations, pursuing an MBA would be like following a herd.

Do you expect all these 20 different benefits to come out of your MBA earnings? Remember that keeping these things in mind, make your decision and take the next important step on your career path.

There are many reasons to do an MBA to shape a good future and success. However, if you try to overcome the barriers of low-level responsibilities in your job, and spread success, an MBA course from a reputable college will be all that you need.