How Can I Get Education Loan For Mba?

0 Comments

How Can I Get Education Loan For Mba
MBA Education Loan financing and collateral requirement – On average, the MBA admission college fee and expenses in India are Rs.12–18 lakh. It’s easy to get a loan of Rs.10 lakh or less in India as it gets quickly and easily sanctioned. The option that gives maximum loan at minimum fixed interest should be preferred.

  • Normally for Rs.10 lakh loan, the borrower will end up paying around Rs.16 lakhs at 10 per cent interest rate.
  • This means they will pay around Rs.17,000 every month for eight years after their post-graduation.
  • Banks can finance up to 100 percent of the loan depending on the amount of MBA admission Education Loan and the category of the institute.

For most banks, there is no margin money required for an MBA education loan upto Rs.4 lakh. For loans above Rs 4 lakhs up to Rs 7.5 lakh, a third-party guarantee is required. A collateral is asked for a loan exceeding Rs.7.5 lakh. However, State Bank of India’s Scholar Loan for students of certain premier business schools (except Indian School of Business, Hyderabad ), as well as the Central Bank of India’s IIM scheme, does not ask for any collateral security.
View complete answer

Which bank is best for education loan for MBA?

State Bank of India (SBI) This bank offers some of the best education loan schemes in India. For MBA courses, the following education loan schemes are offered: SBI Scholar Loan Scheme – It is offered to people who wish to study in selected 120 Premier Indian Institutions.
View complete answer

Can I get education loan for online MBA in India?

FAQs – Can I get a student loan for MBA? Yes, you can! Depending on the amount of MBA admission Education Loan and the category of the school, banks can finance up to 100 percent of the loan. Most banks do not need any margin money for an MBA education loan up to Rs.4 lakh.

  • A third-party guarantee is necessary for loans of more than Rs 4 lakh and up to Rs 7.5 lakh.
  • Is it good to take a loan for MBA? Given the ever-increasing MBA tuition at leading business schools, it is apparent that taking out loans to complete this program requires cautious preparation.
  • For example, suppose you take a loan of Rs.10 lakh for your MBA, and the average CTC provided in a b-school at the time of placements is somewhere between Rs.8 lakhs and Rs.10 lakhs.

Which bank is best for an education loan? Bank of India, State Bank of India, Kotak Mahindra Bank, HDFC, ICICI, Federal Bank, etc are some of the best banks to avail for education loans to study in India or abroad. Can I get a 20 lakhs education loan? Yes! You can get an INR 20 lakhs education loan to pursue your higher studies.

  • The Credit Guarantee Fund for Education Loans (CGFEL) Scheme offers a guarantee for education loans disbursed by banks under the Indian Banks’ Association (IBA) Model Education Loan Scheme.
  • The CGFEL plan allows you to borrow up to Rs 10 lakh for in-country studies and up to Rs 20 lakh for out-of-country studies.

Can I get 1 crore education loan? ICICI Bank, a private sector lender, today announced ‘Insta Education Loan,’ which allows clients to receive an immediate approval for education loans of up to one crore rupees. This first-of-its-kind service will allow thousands of clients to acquire education loans against their bank’s fixed deposits in a totally digital procedure.
View complete answer

How much education loan can I get for MBA in IIM?

Comparison between various Bank Loans

Bank/Loan Max Amount
SBI’s Scholar Loan Rs.40 lakh
CBI’s Special Education Loan Scheme to IIM Students (Cent Vidyarthi for IIM Students) Rs.30 lakh
BOI’s Exclusive Education Loan Scheme for Students of Premier Educational Institutions Rs.20 lakh Rs.30 lakh with 100% tangible collateral

View complete answer

Is it worth to take education loan for MBA?

So assuming this, your salary would be enough to pay back your EMI, plus any savings could be invested at a rate greater than the interest rate of the loan. So, if one does have an aptitude for doing an MBA, one should do it. The Market does pay you better for a higher degree.
View complete answer

Can a poor student study in IIM?

IIM-A aspires to provide every candidate, irrespective of his/her financial status, the opportunity to pursue the PGP/ PGP-FABM at IIMA. IIMA offers a need based Scholarship over and above the scholarships provided by the Govt. of India, Alumni and Industries/Corporations.
View complete answer

What is the scholarship amount for MBA?

• Open for Indian Nationals, residing in India only. • Gross annual family income from all sources should be less than or equal to ₹6 Lakhs p.a. * • Applicable for students enrolled in first year of the two-year MBA program or its equivalent of the class of 2023 • Enrolled in any of the MBA colleges mentioned in the attached list • The applicant should be no more than 35 years of age on the date of his/her application • The applicant must have a valid mobile number linked to Aadhaar card List of applicable colleges Please check the Terms & Conditions before you apply.

● Students admitted in the 1st year of 2-year full-time MBA or its equivalent programs at selected institutions/colleges are eligible for this scholarship ● Students pursuing 1-year executive program, integrated MBA program or any MBA program other than 2-year full-time MBA/PGDM program are not eligible for this scholarship ● Final grant of Scholarships will take place only after due verification of their documents & on-ground screening of the shortlisted applicants.

In case the applicant fails to do the needful in any of these stages or is unable to comply with the process within the stipulated timeframe, his/her candidature shall be rejected ● The applicant needs to provide the details for on-ground verification as mentioned in the form to the bank representatives.
View complete answer

Can a poor student study MBA in India?

Can A Poor Student Study MBA? Reading Time: 2 minutes The full form of MBA is well known Yes! You guessed it right- MASTER IN BUSINESS ADMINISTRATION. But today this course has become a status symbol rather than a premiere vocational course. The high cost of MBA course and its stringent selection process have demoralized several aspiring candidates. The exorbitant MBA course fee deprives many students from studying this PG course. On an estimate, any MBA course throughout India costs at least more than a lakh or two. Only rich people readily invest such an amount towards their kids’ education. Else, other parents may need to take education loan for that.

This often create unwanted financial stress and liability for them. Be it Mumbai, Hyderabad or Patna, wherever one wants to study MBA, he should be sure of the high cost of the course irrespective of how much brilliant and intellectual he is. Scholarship or reduced course fee for an MBA aspirant is a rare word.

Private institutes and universities add more confusion into the scene as they charge too high fees in the name of 100% placement. How Can I Get Education Loan For Mba Private Universities claim that they have superior faculties and infrastructure to teach MBA students. Still charging Rs.4-5 lakhs for a two-year course is very high. Since MBA is a common course that any graduate can study so it’s price should be in fact affordable and low.
View complete answer

Where is the cheapest MBA in India?

Top MBA colleges in India with Low Fees offer high RoI MBA programmes. These Top B-schools in India offering affordable MBA include FMS Delhi, JBIMS Mumbai, SIMSREE Mumbai, PUMBA Pune, UBS Chandigarh, USMS Delhi among others. They charge a fee from Rs.50,000 to Rs.10 Lakhs for the complete MBA program as against many of the expensive MBA colleges in a fee range of Rs.18 lakhs to 25 lakhs.

  1. This article from MBAUniverse.com analyses the most affordable top MBA colleges, IIMs offering 2 years full time MBA/PGDM programmes There are many high RoI top MBA colleges with Low Fees in India.
  2. These MBA colleges with low fees are spread across the country and charge a fee in the range of Rs.50,000 to Rs.10 Lakhs for the complete 2 year full time residential MBA programme as against other top MBA colleges like IIMs, XLRI, MDI, SPJIMR which have a fee structure between 17 lakhs to Rs.24 lakhs.

This article from MBAUniverse.com analyses the most affordable MBA Low Fees colleges in India offering 2 years full time MBA/PGDM programmes to guide you in taking the right MBA admission decision. Table of Contents

  1. Low Fee MBA Colleges in India: Type of B-Schools
  2. Top MBA Colleges with Low Fee: Admission 2023 Open
  3. Other Prominent MBA Colleges with Low Fee
  4. IIMs with Low Fee MBA
  5. MBA with Low Fee in Bangalore
  6. MBA with Low Fee in Delhi NCR
  7. MBA with Low Fee in Mumbai
  8. Other MBA Colleges with Low Fee in India
  9. Low Fee MBA in India: High RoI Program

1. Low Fee MBA Colleges in India: Type of B-Schools The low fee MBA colleges in India are the low fee and high placement management institutes affiliated to top universities. Some of the Top MBA Colleges in India with Low Fees and offering affordable MBA are either affiliated to, or are the management departments of the Delhi University, Mumbai University, GGSIPU University Delhi, Delhi Technical University, Bangalore University, Panjab University among others.

MBA Entrance Exam & MBA/PGDM Admissions | Apply Now
XAT 2023 Registration Open IBSAT 2022 Registration Open
MICA PGDM-C/PGDM Admissions Open 2023 MDI Gurgaon PGDM Admission 2023
IMT Ghaziabad PGDM Admissions 2023 SPJIMR Mumbai PGDM Admission 2023
Great Lakes PGPM & PGDM Admission 2023 K J Somaiya MBA 2023-25 Admissions Open
GIM Goa PGDM Admissions 2023 Open IMI New Delhi PGDM Admission 2023
LBSIM Delhi PGDM Admission 2023 FORE School of Management Admissions 2023
BIMTECH PGDM Admissions Open 2023 IFMR GSB, Krea University MBA Admissions 2023
XIM University MBA Admission 2023 SDA Bocconi Asia Center IMB Admission 2023
SOIL Gurgaon PGPM & PGDM Admission 2023 JAGSoM Bangalore PGDM Admission 2023
We School | Welingkar PGDM Admissions 2023 IFMR GSB, Krea University MBA Admission 2023

2. Top MBA Colleges with Low Fee: Admission 2023 Open The MBA colleges with low fee as shared below are open or opening soon with their admission process 2023. They offer University MBA with low fee. Most of these MBA colleges with low fee are keeping their fee level for 2023-25 batch at last year level with a negligible or no increase in fee.

Top MBA college with Low Fees Programme Fee
Faculty of Management Studies (FMS) Delhi – University of Delhi Rs.1,94,000
Delhi School of Economics, Delhi University Rs.32,000
GGSIPU, Delhi Rs.59,000
PUMBA, Pune Rs.1,34,000
SIMSREE, Mumbai Rs.1,36,000
JamnaLal Bajaj Institute of Management studies (JBIMS) Rs.6,00,000
BITS Pilani Rs.9,00,00
UBS Chandigarh-Panjab University Rs.38,000

3. Other Prominent MBA Colleges with Low Fee Apart from the above top MBA colleges with low fee are other prominent MBA colleges in India with low fee. Some of these MBA colleges with low fee are:

MBA college with Low Fees Programme Fee
Ambedkar University, Delhi Rs.3,00,000
Delhi Technical University (Formerly Delhi College of Engg.) Rs.3,56,000
NITIE Mumbai Rs.14,63,000/-
SJMSOM-IIT Bombay Rs.10,08,000/-
DoMS-IIT Delhi Rs.9,60,000/-

4. IIMs with Low Fee MBA Although MBA fee in IIMs is very high as compared to other MBA colleges in India, there are many IIMs with low fee MBA. While IIM Ahmedabad, Bangalore, Calcutta have a fee structure between 21 lakhs and 24 lakhs, some of the IIMs offer MBA at a fee between Rs.12 Lakhs and Rs.15 lakhs.

IIMs with Low Fee MBA MBA Fee Structure
IIM Amritsar Rs.13,20,000
IIM Bodhgaya Rs.12,95,000
IIM Jammu Rs.14,82,000
IIM Nagpur Rs.13,75,000
IIM Raipur Rs.14,21,000
IIM Rohtak Rs.16,65.000
IIM Tiruchirappalli Rs.16,50,000
IIM Udaipur Rs.18,65,000
IIM Sirmaur Rs.11,75,000
IIM Sambalpur Rs.13,03,000
IIM Visakhapatnam Rs.14,33,000
You might be interested:  What Are The Terms And Conditions Of Education Loan?

5. MBA with Low Fee in Bangalore MBA colleges affiliated to Bangalore University or Visvesvaraya Technical University (VTU) offer MBA with low fee in Bangalore. The MBA with low fee in Bangalore is offered by all these top MBA colleges with affiliation to Bangalore University MBA programme. Visvesvaraya Technical University (VTU), affiliated colleges also offer MBA with low fee in Bangalore

MBA with Low Fee in Bangalore Programme Fee Entrance Exam Accepted
Bangalore University Rs.66,000 to 75,000 PGCET & Other National Exams
Visvesvaraya Technical University (VTU), Bangalore Rs.56,000 to 65,000 PGCET & Other National Exam

However, there is gap in the fee structure for Karnataka domicile and All India category candidates opting for the Bangalore University or VTU MBA programmes offered by the university affiliated MBA colleges. There is very low fee MBA for Karnataka domicile candidates in MBA colleges while it would be higher for All India category candidates 6.

MBA with Low Fee in Delhi NCR Programme Fee Entrance Exam Accepted
FMS Delhi (University of Delhi) Rs.1,94,000 CAT (Common Admission Test conducted by IIMs)
DSE Delhi (University of Delhi Rs.32,000 CAT (Common Admission Test conducted by IIMs)
USMS (GGSIPU Delhi) Rs.59,000 CAT (Common Admission Test conducted by IIMs)
DoMS-IIT Delhi Rs.9,60,000 CAT (Common Admission Test conducted by IIMs)
SBPPSE (Ambedkar University, Delhi) Rs.3,00,000 Own Admission Test & CMAT
Delhi Technical University (Formerly Delhi College of Engg.) Rs.3,56,000 CAT & MAT

7. MBA with Low Fee in Mumbai MBA with Low Fee in Mumbai is offered by some of the top MBA colleges affiliated to Mumbai University/Pune University like JBIMS, SIMSREE, PUMBA. The admission to these colleges offering MBA with Low Fee in Mumbai is through Centralized Admission Process conducted by DTE Maharashtra.

MBA with Low Fee in Mumbai Programme Fee Entrance Exam Accepted
JamnaLal Bajaj Institute of Management studies (JBIMS) Mumbai Rs.6,00,000 MAH-CET/CAT
SJMSoM-IIT Bombay Rs.10,08,000 CAT
NITIE Mumbai Rs.14,63,000 CAT
PUMBA, Pune Rs.1,34,000 MAH-CET/CAT
SIMSREE, Mumbai Rs.1,36,000 MAH-CET/CAT

8. Other MBA Colleges with Low Fee in India Other MBA Colleges with low fee include some of the MBA colleges with admission 2022 still open while most of them have closed the process. The other MBA colleges with Low Fee in India are:

MBA College Fees (Rupees) Exams Accepted
VIT Business School Vellore 7,02,000 CAT/XAT/CMAT/MAT/NMAT
Chandragupt Institute of Management Patna 7,65,000 CAT/XAT/CMAT
IMS Ghaziabad 7,95,000 CAT/XAT/CMAT/MAT/NMAT
VJIM Hyderabad 7,50,000 CAT/XAT/CMAT/MAT/TSICET/PGCET
JIMS Rohini Delhi 7,95,000 CAT/XAT/CMAT/MAT
SCMS Cochin 7,50,000 CAT/XAT/CMAT/MAT
GBS Kolkata 7,95,000 CAT/XAT/CMAT/MAT
Jaipuria School of Business, Ghaziabad 7,50,000 CAT/XAT/CMAT/MAT
Firebird Institute of Research in Management Coimbatore 4,80,000 CAT/XAT/CMAT/MAT
K R Mangalam University Delhi 2,60,000 CAT/XAT/CMAT/MAT
St. Kabir Institute of Professional Studies Ahmedabad 4,95,000 CAT/XAT/CMAT/MAT
SRM University Chennai 5,00,000 CAT/XAT/CMAT/TANCET
IMS Ghaziabad (University Courses Campus) 5,48,500 CAT/XAT/CMAT/MAT
Pune Business School 5,50,000 CAT/XAT/CMAT/MAT
NSB Academy Bangalore 7,10,000 CAT/XAT/CMAT/MAT/PGCET
MITCON Pune 5,25,000 CAT/XAT/CMAT/MAT

9. Low Fee MBA in India: High RoI Program MBA in India is probably the only post graduate programme with short duration and high return. However, the biggest hurdle in doing MBA from a top MBA college is its high fee, apart from preparing well and scoring high in the entrance exam.

So, your dream of doing MBA from one of the top ranked MBA colleges depends upon the two basic ingredients – the 2 years MBA fee for the programme and the career prospects with current placement trends, in other words – what will be the RoI on your Investment, It will become easier to arrive at the decision on admission to MBA with the MBA low fee structure available at a glance in top MBA colleges with low fee.

It will help you organize your fund arrangement for pursuing the MBA programme from one of the top B-schools in India. Hope this article has been useful in providing broad picture of MBA colleges with low fee in India with their admission status. We will update this page frequently with latest information.

MBA Entrance Exam & MBA/PGDM Admissions | Apply Now
IMI New Delhi PGDM Admission 2023 IBSAT 2022 Registration Open
MICA PGDM-C/PGDM Admissions Open 2023 IRMA PGDM (RM) Admissions Open 2023
IMT Nagpur PGDM Admissions 2023 Great Lakes PGPM & PGDM Admission 2023
LBSIM Delhi PGDM Admissions Open 2023 K J Somaiya MBA 2023-25 Admissions Open
GIM Goa PGDM Admissions 2023 Open FORE School of Management Admissions 2023
BIMTECH PGDM Admissions Open 2023 IFMR GSB, Krea University MBA Admissions 2023
NIA Pune PGDM Admission Open 2023 SDMIMD Mysuru PGDM Admissions Open 2023
IBA Bangalore PGDM Admission 2023 Jaipuria Institute of Management PGDM Admission
JIMS Rohini PGDM Admission Open 2023 SIOM Nashik MBA in Agri Operations Management
KSOM, KIIT University MBA Admission 2023 JAGSoM Bangalore PGDM Admissions 2023

Stay tuned to MBAUniverse.com for more updates on Low Fee MBA Colleges in India Also Read:

  • AICTE Fee Refund Policy: Check All Details
  • Direct MBA Admission Without Entrance Exam
  • How to Choose an MBA College: 10 Points
  • Education Loan for MBA: MBA Education Loan In India – by Private Banks & NBFCs
  • PGDM or MBA: Difference between, how to choose, and other MBA vs PGDM questions answered
  • Top MBA Colleges with Low Fees: India’s Lowest Fee MBA colleges

View complete answer

Is education loan interest free?

The interest rates will be floating for entire period of loan – Education Loan Portal mean rate of interest 9.37%.

SBI STUDENT LOAN SCHEME
Loan Limit EBR CRP Effective Interest Rate Rate Type
Upto Rs 7.5 Lakhs 8.55% 2.00% 10.55% Floating
Concession 0.50% concession in interest for girl students
Above Rs 7.5 Lacs 8.55% 2.00% 10.55% Floating
Concession 0.50% concession in interest for girl students
0.50% concession for students availing of SBI Rinn Raksha or any other existing policy assigned in favour of our Bank

table>

SBI SCHOLAR LOAN SCHEME (Including TAKEOVER and PART-TIME COURSES for select institutes) List EBR CRP Business Strategy Discount Effective Interest Rate Rate Type AA All IITs 8.55% 0.00% (-) 0.60% 7.95% (With or without co-borrower) Floating Other institutes 8.55% 0.05% (-) 0.60% 8.00% (With or without co-borrower) Floating A All IITs 8.55% 0.00 (-) 0.60% 7.95% Floating Other institutes 8.55% 0.50% (-) 0.60% 8.45% Floating B All NITs 8.55% 0.50% (-) 0.60% 8.45% Floating Other institutes 8.55% 1.00% (-) 0.60% 8.95% Floating C All NITs 8.55% 0.50% (-) 0.60% 8.45% Floating Other institutes 8.55% 1.50% (-) 0.60% 9.45% Floating

table>

SBI SKILL LOAN SCHEME Loan Limit EBR CRP Effective Interest Rate Rate Type Upto Rs 1.5 Lacs 8.55% 1.50% 10.05% Floating Concession No Further Concession

table>

SBI GLOBAL ED-VANTAGE SCHEME Loan Limit EBR CRP Effective Interest Rate Rate Type Above Rs.7.50 lacs & Upto Rs 1.5 Cr 8.55% 2.00% 10.55% Floating Concession 0.50% concession for students availing of SBI Rinn Raksha or any other existing life policy assigned in favour of our Bank Further Concession 0.50% concession for girl students

table>

SBI TAKEOVER EDUCATION LOANS SCHEME (Under Student Loan & Global Ed-Vantage Scheme) Loan Limit EBR CRP Effective Interest Rate Rate Type Above Rs 10 lacs & Upto Rs 1.5 Cr 8.55% 2.00% 10.55% Floating Concession 0.50% concession for students availing of SBI Rinn Raksha or any other existing life insurance policy assigned in favour of our Bank Further Concession 0.50% concession for girl students

table>

SHAURYA EDUCATION LOAN (For wards of Defence & Indian Coast Guard ) Loan Limit EBR CRP Effective Interest Rate Rate Type Upto 7.50 lakhs 8.55% 2.00% 10.55% Floating Concession 0.50% concession for girl students Above Rs.7.50 Lakhs & Upto Rs.1.50 Cr In case of Secured Loan 8.55% 2.00% 10.55% Floating In case of Unsecured Loan 8.55% 2.00% 11.15% Floating Concession 0.50% concession for girl students 0.50% concession for students availing of SBI Rinn Raksha or any other existing life insurance policy assigned in favour of our Bank

Last Updated On : Tuesday, 15-11-2022 How Can I Get Education Loan For Mba
View complete answer

Can you get 100% MBA loan?

MBA Education Loan financing and collateral requirement – On average, the MBA admission college fee and expenses in India are Rs.12–18 lakh. It’s easy to get a loan of Rs.10 lakh or less in India as it gets quickly and easily sanctioned. The option that gives maximum loan at minimum fixed interest should be preferred.

  1. Normally for Rs.10 lakh loan, the borrower will end up paying around Rs.16 lakhs at 10 per cent interest rate.
  2. This means they will pay around Rs.17,000 every month for eight years after their post-graduation.
  3. Banks can finance up to 100 percent of the loan depending on the amount of MBA admission Education Loan and the category of the institute.

For most banks, there is no margin money required for an MBA education loan upto Rs.4 lakh. For loans above Rs 4 lakhs up to Rs 7.5 lakh, a third-party guarantee is required. A collateral is asked for a loan exceeding Rs.7.5 lakh. However, State Bank of India’s Scholar Loan for students of certain premier business schools (except Indian School of Business, Hyderabad ), as well as the Central Bank of India’s IIM scheme, does not ask for any collateral security.
View complete answer

How is education loan paid back?

Plan To Repay –

In case of SBI Student loans, repayment will start after the completion of course period and moratorium period (Repayment commences one year after the course completion or 6 months after securing a job, whichever is earlier). The Loans are sanctioned as Term Loans and to be repaid in EMIs over a maximum repayment term of 15 years (180 EMIs) for Student, Scholar and Global Ed-vantage Education Loans. The repayment of EMI starts 12 months after the completion of the course or 6 months after getting the employment, whichever is earlier for Student and Scholar Loan Schemes. In case of Global Ed-Vantage Loans, repayment of EMI starts 6 months after the completion of the course. The accrued interest during the moratorium period and course period is added to the principle and repayment is fixed in Equated Monthly Installments (EMI). If full interest is serviced before the commencement of repayment; EMI is fixed based on principle amount only. There are NO penalty charges for prepayment. You can prepay your education loan anytime.

View complete answer

Is it easy to pay back education loan?

Save More – From your monthly income, you can save a little and use it later for the education loan prepayment. You can open a savings account, Fixed Deposit, or Recurring Deposit to save money from your monthly salary. It is always advised to the borrower to save as much as possible and limit their expenses for a period up to the loan tenure, so it will be easy for them to pay the loan before the scheduled close.
View complete answer

Is education loan available for MBA students?

MBA Education Loan financing and collateral requirement – On average, the MBA admission college fee and expenses in India are Rs.12–18 lakh. It’s easy to get a loan of Rs.10 lakh or less in India as it gets quickly and easily sanctioned. The option that gives maximum loan at minimum fixed interest should be preferred.

Normally for Rs.10 lakh loan, the borrower will end up paying around Rs.16 lakhs at 10 per cent interest rate. This means they will pay around Rs.17,000 every month for eight years after their post-graduation. Banks can finance up to 100 percent of the loan depending on the amount of MBA admission Education Loan and the category of the institute.

For most banks, there is no margin money required for an MBA education loan upto Rs.4 lakh. For loans above Rs 4 lakhs up to Rs 7.5 lakh, a third-party guarantee is required. A collateral is asked for a loan exceeding Rs.7.5 lakh. However, State Bank of India’s Scholar Loan for students of certain premier business schools (except Indian School of Business, Hyderabad ), as well as the Central Bank of India’s IIM scheme, does not ask for any collateral security.
View complete answer

Can you get a Bank loan for an MBA?

Commercial bank loans for MBA students – Many traditional financial institutions will offer personal loans to MBA students. These are most likely to be offered to those with a good credit rating and who are studying on a part-time basis, and thus working whilst studying for their MBA.
View complete answer

You might be interested:  What Facilities Are Available For Education And Health In Palampur?

Which Bank is best for IIM education loan?

List of Top Banks for Admission in Management Institutes

Banks Loan Amount Interest Rate (In Per Annum)
State Bank of India (SBI) INR 7.5-40 Lakh 6.90% – 9.30%
Punjab National Bank (PNB) Need-Based 6.90% – 9.55%
Axis Bank INR 7.5-40 Lakh 13.70% – 15.20%
Union Bank of India INR 30 Lakh 7.20% – 10.45%

View complete answer

Which Bank is best for IIM loan?

MBA education loan in India is one of the most convenient options to meet your high MBA programme fee. The MBA Fee for top B-schools like IIM Ahmedabad, Bangalore, Calcutta, MDI Gurgaon, XLRI Jamshedpur among others is between Rs.20 lakhs to Rs.24 lakhs.

Apart from this fee, you need to meet other expenses on lodging & boarding and personal expenses during your MBA program. So checking out on MBA loan and funding your MBA course is equally important as getting admission. Accordingly, the options for MBA education loan in India to finance your expensive MBA programme before taking admission to MBA programme should be well understood.

It is difficult to pursue your MBA education without finding the ways for funding your high MBA fee and other expenses that you will need to incur in two years of your MBA study. Even the most affordable MBA program of FMS now costs about 2 lakhs. IIMs already have a high fee structure running between Rs.13 lakhs to Rs.24 lakhs.

MBA Entrance Exam & MBA/PGDM Admissions | Apply Now
XAT 2023 Registration Open IBSAT 2022 Registration Open
MICA PGDM-C/PGDM Admissions Open 2023 MDI Gurgaon PGDM Admission 2023
IMT Ghaziabad PGDM Admissions 2023 SPJIMR Mumbai PGDM Admission 2023
Great Lakes PGPM & PGDM Admission 2023 K J Somaiya MBA 2023-25 Admissions Open
GIM Goa PGDM Admissions 2023 Open IMI New Delhi PGDM Admission 2023
LBSIM Delhi PGDM Admission 2023 FORE School of Management Admissions 2023
BIMTECH PGDM Admissions Open 2023 IFMR GSB, Krea University MBA Admissions 2023
XIM University MBA Admission 2023 SDA Bocconi Asia Center IMB Admission 2023
SOIL Gurgaon PGPM & PGDM Admission 2023 JAGSoM Bangalore PGDM Admission 2023
We School | Welingkar PGDM Admissions 2023 IFMR GSB, Krea University MBA Admission 2023

If you go with a planned and well thought of process, you may not only get the required money for funding your MBA education at one of the top MBA colleges despite it being an expensive programme, but will also save a lot of money during the course of study, if you choose the best among the available MBA Education loan options.

This article by MBAUniverse.com will help you understand all about MBA Education Loan options, top Education Loan Providers in India for MBA, availability of MBA education loan in India, availability of education loan for MBA by Private Banks & NBFCs, how to apply and the amount of loan that you can get.

To pursue the dream of doing MBA, almost 80% of MBA students take MBA education loan in India. Therefore, planning and securing your Education Loan for MBA/PGDM in India is as important as getting the admission itself! Before we move to find out the options for funding your MBA, we must know the fee for top MBA colleges like IIMs and other top B-schools and then decide the requirement of IIM Education loan for MBA or for other B-schools.

MBA College Fee Structure (Rs. In Lakhs)
IIM Ahmedabad 23.00
IIM Bangalore 23.20
IIM Calcutta 22.60
IIM Lucknow 19.25
IIM Kozhikode 20.50
XLRI Jamshedpur 23.60
MDI Gurgaon 21.34
IIFT Delhi 18.25
SIBM Pune 20.72
SPJIMR Mumbai 19.00
IMI New Delhi 19.25
IMT Ghaziabad 19.53
K J Somaiya Mumbai 16.29
IFIM Bangalore 12.00
IFMR Chennai (Sri City) 13.86
IPE Hyderabad 8.15
Jaipuria Institute of Management, Lucknow 10.45

Actual fee may revised before admission) MBA Education Loan Options Education loans for MBA in India are offered by Public Sector banks like State Bank of India, Punjab National bank, Central Bank of India, Punjab & Sind Bank, Dena Bank, Canara Bank among others.

MBA education loans are also offered by private sector banks like ICICI Bank, Axis Bank, Kotak Mahindra Bank. There are also specialized NBFCs like HDFC Credila Financial Services Limited, Avanse Financial Services which provide MBA Education loan in India. Accordingly, you have number of MBA education loan options.

However, the cost of these MBA education loan options may go up or down due to differentiation in rate of interest and you have to take care of this problem. What’s important to note is that most financial institutions offer differential MBA loan interest rate schemes for education loan for MBA in IIMs and other top rated MBA colleges as compared to other MBA colleges.

BBA Admissions Open 2022 | Apply Now!
JAGSoM BBA Program Admissions 2022 KEDGE International BBA at JAGSoM

Following are the key Education loan schemes offered by different financial institutions which will be funding for MBA programmes: Education Loan for MBA by Public Sector Banks Almost all the Public Sector Banks offer Education loan for MBA programme. Top Education Loan Providers in India for MBA among the public sector banks and financial institutions who offer MBA admission education loan are:

Banks offering MBA Education Loan in India Max Amount of Loan (Rs. In Lakhs) Rate of Interest (Varies for the amount of loan, category of institute)
State Bank of India 30 8.05 to 10.15
Canara Bank 40 8.65 to 10.75
Punjab National Bank 75 8.35 to 10.95
Dena Bank 15 10 to 11.8
Punjab & Sind Bank 10 9.75 to 10.75
Central Bank of India 20 8.90 to 10.4
Union Bank of India 30 8.65 onwards

Education Loan for MBA by Private Banks & NBFCs Education loan for MBA by Private banks and NBFCs is available to a large extent. Most of the private sector Banks and Non-Banking Financial Companies also offer Education Loan for MBA as under:

Bank/Financial Institution Maximum Loan Amount (Rs.in Lakhs) Rate of Interest (%)
Avanse Financial Services No Limit 10% to 16.5%
HDFC-CREDILA 45 6.7% onwards
IDBI Bank Ltd 15-20 8.5 to 10.5
ICICI Bank 50 10.5% onwards
Axis Bank 75 8.8% onwards
Kotak Mahindra Bank 10 11.5 to 24

Education Loan for MBA in SBI SBI Education Loan for MBA in India is considered low cost and covers a major part of all the expenses while funding your MBA. One of the key features of Education Loan for MBA in SBI is that you will get the education loan in SBI at low interest rate if you have got MBA admission in a premier MBA college.

  • The scheme of education loan for MBA in State Bank of India is covered under its different schemes for study in India and abroad.
  • Education Loan in SBI for MBA in top B-schools is given under the Scholar scheme.
  • These Education loans for MBA in SBI are offered to study in the top rated management institutes – IIMs and other top B-schools while for other B-schools regular study loans are offered.

The tailor made education loan schemes for MBA in SBI are offered for IIM Ahmedabad, IIM Bangalore, IIM Calcutta and other IIMs as well as for MDI Gurgaon, XLRI among others in accordance with their fee structure. MBA loan interest rate for different schemes is different.

  • Maximum Loan amount: Rs.30 Lakhs (for students of IIM Ahmedabad, for others as per their fee structure)
  • Rate of interest: 8.05% for IIMA; for others like MDI 10.15%
  • Margin amount: Nil for IIM A; 5% for others
  • B schools covered for Rs.30 lakhs cap: IIM A,B,C, XLRI
  • B schools covered for Rs.20 lakhs cap: All other IIMs, MDI, XIMB,IMT
  • Collateral security: No collateral needed for top B-schools, co-borrower required. For other B-schools collateral required

5 Tips to Secure MBA Loans If you adhere to following 5 tips while securing finance for MBA with Education Loan, you will not only get the best deal but will also save a lot of money during repayment of the education loan with interest: 1. Calculate your Estimated Expenses Calculate the MBA funds requirement on the basis of 4 factors, namely 2 years funds requirement; Prospective job market after 2 years; Amount needed to live a non luxurious life during the course and EMI on repayment based on interest rate and period of repayment Apart from seeking funding for tuition Fee you have to think of Lodging & Boarding expenses, Computer, stationery, books, clothing among others.

  1. Taken together all these expenses may be very high.
  2. But you would incur them it is for sure.2.
  3. Look for Cheapest MBA Education Loan MBAUniverse.com Research team has worked out the economics on how you can save at least Rs.2 lakhs on your admission fee, if you opt for study loan from the right financial institution after negotiating a little.

All the banks have their own study loan schemes to fund the MBA study in India and abroad. These study-loan schemes are divided in two segments – one is the regular study loan for the students of normal professional colleges and the other is meant for premium institutes like IITs, IIMs, XLRI, MDI, SPJIMR, IMI, IMT, IIFT.

The difference in both types of schemes is that the study loan schemes for premium institutes offer you higher amount with lower interest rate. Corporate/Head offices of these banks publish updated list of such premium B schools. If your institute falls under the category of premium MBA college, you will get MBA study loan at low interest rate and during the repayment tenure of 7 years or so, you will be able to save a huge amount as in the initial years even a 0.25% hike in interest rate can make a cumulative effect coming in lakhs at the end.3.

Compare MBA Funding Schemes of Different banks Education loan for MBA is available from almost all the banks and other specialized financial institutions in private and public sector including Avanse, Central Bank of India, Credila, Dena Bank, IDBI Bank, HDFC, Punjab National Bank, State bank of India, Punjab & Sind Bank These MBA funding schemes are known by different names to ascertain the various terms and conditions, maximum amount, concessionary rate of interest, clubbing of co borrower, need of margin and security.

  • SBI has named its education loan scheme for premier B-schools as ‘Scholar loan scheme’ and SBI student loan; PNB has named it as PNB Pratibha and PNB Saraswati.
  • But our prime objective is not to go for the name but to know where we can get maximum at minimum interest rate.4.
  • Opt for Shorter Repayment Period Think on reducing the repayment period of your education loan.

Banks have tactfully revised and extended the same. The burden of interest in a longer period will be more. For example, if you repay a loan amount in 10 years for which accrued interest is Rs.6.4 lakh, the same amount if repaid in 7 years, will carry the total interest of around Rs.4.35 lakhs as the rate of interest will be less due to shorter repayment period.5.

Pay interest during course period Try to repay the amount of simple interest applied on your study loan amount. It would reduce the interest burden when compounding of interest begins after 1 year of completion of course. How to reduce MBA Study Expenses While you are thinking about financing your MBA, it is useful to understand how you can reduce your study expenses.

Here are some tips.

  1. Save on International tour Many B-schools have started foreign study tour to various foreign institutes or have engaged in international exchange programme. The fee for foreign tour or international exchange programme runs in lakhs. If you are able to convince the B-school that you wouldn’t like to go for it, it is very much likely that you are exempted from it. Moreover, the value of the international tour may not be so much as it is claimed by the B-school.
  2. Get Scholarship and “Negotiate” your Fee There are B-schools who can offer you discount, scholarships, fee concessions and waivers. Cross check how much of it you can get. This will further reduce your financial burden while pursuing MBA.

Work out the Economics Assuming that the fee structure of the MBA programme requires an amount of Rs.10 lacs to complete the 2 years’ programme, let us discuss what amount would be feasible in different prospective income scenarios.

Loan Repayment Plan Here is how you can plan to repay your loan EMIs from your salary. Example-1- Expected Annual Gross Salary: Rs.7.20 lacs. Net (in hand) salary: Rs.5.76 lacs (After allowing 20% for various components like Medical Insurance, HRA, PF,) Maximum recommended education loan amount: Rs 10 lacs @ 11% pa Maximum recommended EMI: 30% of net in hand salary -Net per month salary: Rs 48,000/-

  • EMI of Rs.10 lacs for 10 years: Rs 13700/-
  • Total repayment in 10 years: Rs.16,44,000/-
  • Total interest paid on loan: Rs.6,44,000/-

Example-2- Expected Annual Gross Salary: 4.8 lacs. Net (in hand) salary: Rs.3.84 lacs (After allowing 20% for various components like Medical Insurance, HRA, PF,) Maximum recommended education loan amount: Rs 7 lacs @ 11% pa Maximum recommended EMI: 30% of net in hand salary

  • Net per month salary: Rs 32,000/-
  • EMI of Rs.7 lacs for 10 years: Rs 9600/-
  • Total repayment in 10 years: Rs.11,52,000/-
  • Proportion of repayment to net salary: 30%
  • Total interest paid on loan: Rs.4,52,000/-

Example 3- Expected annual Gross salary: Rs.3.6 lacs. Net (In hand) salary: Rs.3 lacs (After allowing 20% for various components like Medical Insurance, HRA, PF,) Maximum recommended education loan amount: Rs 5 lacs @ 11% pa Maximum recommended EMI: 30% of net in hand salary

  • Net per month salary: Rs 25,000/-
  • EMI of 5 lacs for 10 years: Rs 6900/-
  • Total repayment in 10 years: Rs.828,000/-
  • Proportion of repayment to net salary: 28%
  • Total interest paid on loan: Rs.328,000

10 Steps to Avoid Debt Trap of Education Loan While funding your MBA, you may be attracted to higher MBA education loan than actually required. This may put you in debt trap. Getting into MBA education loan trap is easier than you think and usually we run into a bank the scheme of which appears lucrative but has many loopholes to plug.

There is no doubt that Education loan for MBA is the best option to finance your MBA study, but it is also important to avoid falling into the education loan trap after completing the MBA programme. Falling into education loan trap without giving it a proper thought while procuring it is definitely bad which shows your poor management skills.

Sometimes we have to approach other banks to take over the existing education loan to get rid of the vicious cycle of these schemes since it becomes difficult to regularly repay the EMI due to the hidden charges, high rate of interest, compounding interest system, guarantee and security system as well as irrelevant documentation.

  • So, watch your steps Sometimes, you spend more than you can afford and then struggle to pay off the loan getting compounded at a hefty interest rate.
  • Remember, how much alluring that education loan scheme might look, but the repayment of it can take years of your life, to recover from.
  • So be cautious while moving forward with your idea of taking education loan for MBA that may lead to falling into a loan trap which you never expected.

Following are the key steps that can save you from falling into the loan trap: Step-1: Read Carefully the MBA Education Loan CAP MBA education is expensive and you may need Rs.10 to Rs.30 lakhs to pursue it. Find out which Bank can cater to your needs.

If you need Rs.20 lakhs and the education loan upper limit of the Bank is Rs.15 lakhs, it will be a difficult situation and you will have to arrange additional Rs.5 lakhs from some other sources which may put you in multiple financial burden. Step-2: Look for the Margin Required by the Bank There are some Public sector and private Banks who do not ask for margin amount on MBA education loan even for an amount as high as Rs.20 lakhs for example SBI, Central bank of India, Union Bank of India, Avanse Financial Services.

On the other hand there are banks who will ask for a margin in a range of 5 to 10 percent on the loan amount exceeding Rs.4 lakhs. It is always better to confirm from the bank about their updated schemes since sometimes they also do not update it on their site.

  1. In case banks collect margin money from you and you pay it because you need the loan and do not have much time left to deposit the fee, you may later on ask for the refund of the same.
  2. Banks as per the rules, if charge anything which they shouldn’t have charged, have to refund it and in case of any resistance from them you can claim the refund with interest by writing to their higher authorities, ombudsman and you will get the refund with all expenses paid.

Step-3: Check for the Processing Charges Some of the banks and financial institutions charge one time processing fee of Rs.5000 or so, or charges it in the form of 0.5% to 2% of loan amount. Most of the public sector banks have no such charges especially on education loans.

  • Still you have to check whether it is charged by the Bank which you are approaching and whether it can be waived.
  • In most of the deserving cases Banks can waive the processing charges while granting education loans.
  • Step-4: Compare Interest Rate Structure This is most important.
  • It is the price for the education loan that you are going to pay.

New interest rate structure defines the base rate, this base rate is usually the base lending rate. A bank can fix a rate over or below this base rate which will eventually become the actual interest rate. For example if the base rate is 10.25% pa and the bank announces its education loan interest rate as 0.25% above the base rate, it will become 10.50% (add 0.25% to base rate).

  1. Sometimes when there is mention like Base Rate + 1.50% or 2.25% above the base rate, we are tempted to think that it means a very low interest but in fact it is high enough.
  2. So, before applying for MBA education loan, you should check the base rate of the particular bank and then add the rate mentioned by the bank.

Step-5: Interest Application Process on loan during the MBA course This is another grey area where financial institutions can play foul unless regularly monitored. Most of the Banks charge simple interest during the moratorium period i.e. course period plus the grace period granted to begin the repayment of loan.

It’s very much possible that while entering the details and data in their computer system, either due to omission or due to the ignorance of banking personnel, they are not able to feed the correct moratorium period or they may have faulty software. Whatever may be the reason but the loss will be yours as the banking system will go on compounding the interest even during the moratorium period.

It has happened with number of MBA, Engineering, Medical and other professional educational loans. Number of candidates despite running from pillar to post couldn’t get it corrected. The height of audacity has been so much that even the staff of the bank was not spared.

  • Rate of intt-10.70%; simple interest during moratorium period
  • All the expenses at IIMB-Rs.18 lakhs

Fee and other charges to be paid in 4 equal instalments: Rs.4.5 lakhs x 4= Rs.18 lakhs 1st instalment paid by the bank-Rs.4.5 lakhs; yearly interest-4.5 lakhs x10.70%=Rs 48150/- pa Monthly interest shall be-Rs.48150/12=Rs.4012/= per month In case of simple interest Rs.4012/- only per month will be charged, whether you repay the interest during course period or don’t pay it.

  1. In no case it will be added to your principal amount of Rs.4.5 lakhs; the interest amount will be parked separately.
  2. Now, the catch : Banks forget the mechanism many times and the monthly interest amount is added to the principal amount and next month you will find higher amount of interest having been charged in your loan account.

How to check? : Check every month the application of interest in your account; ask for account statement. Banks provide internet facility, so you can check and verify at your end also. In case of discrepancy, immediately contact the bank in writing. They forget the verbal communication; this is true especially in case of public sector banks.

  • Step-6: Changes in Interest rate subsequently Almost all the Banks are providing MBA education loans on floating rate of interest.
  • It means if there is any change in their base rate the effective interest rate will also change.
  • What should you do? In case of increase in base rate all the banks remember to change the interest rate.

But in case of reduction in base rate or reduction due to other factors, they forget to implement. Better to confirm on the Bank’s site the base rate. The irony however, is that they also forget to update on their site. Be cautious and monitor regularly Step-7: Take Benefit of Reduced Interest during MBA Course Some of the banks reduce 0.25 to 1% interest burden, if the interest charged during course period is regularly repaid.

It can also reduce a substantial financial burden. Step-8: Work Experience can reduce the Interest Burden Number of banks have brought this feature. If you have work experience of 2-3 years and are pursuing MBA, interest concession in the range of 0.25 to 0.5% can be available to you. Please enquire about it before applying for education loan Step-9: Less Interest rate for Females MBA education to girls can be cheaper as concessional rate of interest will be applied on their loans.

Banks like PNB offer education loans to girls at lower interest rate. Step-10: Opt for Best Repayment term Repayment ideally starts after completion of moratorium period. It can go from 1 year to 9 years. It’s always a good idea to repay early but if you can get longer repayment period, you can get relief in Income Tax.

  1. Entire part of interest repaid on education loan is reduced from your income.
  2. It can be a better option to have a longer repayment period.
  3. On the reverse of it, there are banks who offer interest benefits on MBA education loans for shorter repayment period for example PNB.
  4. Negotiate Vigorously: You have nothing to lose Although most of the financial institutions do not charge prepayment penalty on education loans repayment.

But you never know about the change in their policy. Just confirm this fact before applying. There are number of competitors and competition among public and private sector banks is high enough. Take benefit of this stiff competition. Find out if there are any hidden charges, understand their mechanism.

The interest is usually charged on daily reducing balances, ask and confirm this fact from the bank. Do not allow either the Private or the Public sector bank to cheat you on any point. Instead of following the irregularities later, it’s better to nip in the bud. Advisory Contact the B-school campus branch of the bank first.

Banks situated in the B school campus have all the relevant details and are more expert in the job of MBA admission education loan. On the basis of your choice on MBA education loan options offered by the banks, they can issue in-principle sanction letter for the loan amount with all the terms and conditions written therein.

MBA Entrance Exam & MBA/PGDM Admissions | Apply Now
XAT 2023 Registration Open IBSAT 2022 Registration Open
MICA PGDM-C/PGDM Admissions Open 2023 MDI Gurgaon PGDM Admission 2023
IMT Ghaziabad PGDM Admissions 2023 SPJIMR Mumbai PGDM Admission 2023
Great Lakes PGPM & PGDM Admission 2023 K J Somaiya MBA 2023-25 Admissions Open
GIM Goa PGDM Admissions 2023 Open IMI New Delhi PGDM Admission 2023
LBSIM Delhi PGDM Admission 2023 FORE School of Management Admissions 2023
BIMTECH PGDM Admissions Open 2023 IFMR GSB, Krea University MBA Admissions 2023
XIM University MBA Admission 2023 SDA Bocconi Asia Center IMB Admission 2023
SOIL Gurgaon PGPM & PGDM Admission 2023 JAGSoM Bangalore PGDM Admission 2023
We School | Welingkar PGDM Admissions 2023 IFMR GSB, Krea University MBA Admission 2023

Also Read:

  • Distance MBA in India
  • Top Distance MBA Colleges in India
  • Distance MBA Courses & Fee structure
  • Online MBA in India

View complete answer