An MBA from a top institute is one of India’s most coveted professional degrees, making it possible for you to access high-paying roles in the exciting fields of finance, human resources, marketing and supply chain management, among others. However, the financial cost of completing the degree is high, especially from the top institutes like IIMs and XLRI. The good news is that once you secure admission to one of these institutes, you can apply for an education loan for an MBA to finance your studies without denting your savings.
In this article, we’ll unravel the complexities of education loan for MBA studies in India, providing insights that empower you to invest wisely in your educational future. Let’s navigate this financial terrain together.
Eligibility Criteria of Study Loan for MBA in India
1. Academic Excellence: Maintain a minimum GPA of 60% throughout your academic journey.
2. Consistent Academic Records: No gaps in your academic records are preferred, showcasing a commitment to your educational pursuits.
3. Co-Borrower’s CIBIL Score: A co-borrower with a CIBIL score exceeding 700 enhances your application’s credibility.
4. Age Limit: While the Reserve Bank of India (RBI) imposes no age restrictions on education loans for MBA, some banks may set an age cap, often around 35 years.
5. Addressing Academic Gaps: If you have academic gaps, providing a medical certificate or relevant proof can strengthen your application.
Documents Required for MBA Education Loan
1. Documents from 10th Grade till Graduation: Academic transcripts showcasing your educational journey.
2. KYC Documents: PAN card, Aadhar card, Passport, or Voter ID for identity verification.
3. Proof of Address: Electricity bill, ration card, Aadhar card, bank passbook, or Voter ID to establish residency.
4. Co-applicants Bank Account Statement: The co-borrowers financial standing with the last six months’ bank statements.
5. Income Tax Returns (ITRs) from the Past Two Years: Ensuring financial stability and capability to repay the loan
How to Get Education Loan for MBA in India?
The journey to securing an education loan for MBA is a structured process that demands careful consideration.Here’s your roadmap:
1. Explore Your Options: Examine various loan schemes, weighing their features and benefits. Choose one that caters to your specific needs.
2. Application Submission: Whether online or in-person, submit your application to the chosen bank or financial institution. Many banks now offer online application facilities for your convenience.
3. Communication: Expect a call from a bank representative who will guide you through the specifics of the loan and address any queries you may have.
4. Document Submission: A bank representative may visit your home to assist in filling out the application form and collect necessary documents. Ensure you have all required paperwork ready.
5. Application Review: The bank will thoroughly examine your application, possibly requesting additional information or clarifications.
6. Approval and Contract Signing: Upon completion of the review process, the bank will approve your loan. You’ll be asked to sign a contract, finalizing the terms and conditions.
Expenses covered under Education Loan
The expenses covered under an educational loan for MBA include:
1. Tuition Fees: These are your total academic fees for the MBA program, which include admission fees, tuition fees, and other fees over two years of study and can be significant.
2. Living Expenses: These include your rental, food and day-to-day expenses while pursuing an MBA degree.
3. Academic Expenses: These include textbooks, laptop and other academic expenses.
4. Miscellaneous Expenses: These expenses include sudden or unforeseen expenses such as a field trip, unexpected project costs, conference travel costs, online course fees, etc.
Loans Offered by Banks and NBFCs
Public Sector Banks
Loan amount in INR (max)
Interest rate in %
SBI
50 Lakhs
10.9
PNB
35 Lakhs
7.85
Canara Bank
50 Lakhs
9
Bank of Baroda
20 Lakhs
8.15
Central Bank of India
50 Lakhs
7.95-10.5
Private Sector Banks
Loan amount in INR (max)
Interest rate in %
IDBI Bank
40 Lakhs
8.55-11.15
Axis Bank
75 Lakhs
9.35
ICICI Bank
1 Cr
9.5-14.25
Kotak Mahindra
10 Lakhs
Upto 16%
NBFCs
Loan amount in INR (max)
Interest rate in %
Avanse Financial Services
No limit
10-16.5
HDFC Credila
1.5 Cr
From 10.25%
Why should you take an Education Loan for MBA
An MBA from a premier institute in India is a coveted degree for career advancement. However, the fees of top MBA institutes are often high, and as a student, you might not have the financial strength to pay all the fees out of pocket.
This is where education loan for MBA in India comes in. Banks and NBFCs are willing to provide loans to students who have secured admission to a recognized institute for an MBA. After completing the degree and securing a job, you will have a much better financial position to repay the student loan for MBA. Hence, an MBA study loan helps you to continue your education without denting your savings.
Conclusion
As we conclude this exploration into financing your MBA studies in India, remember that your journey is not just an academic pursuit but a strategic investment. Education loan for MBA empowers you to take this significant step towards career advancement without worrying about finances. You can follow this guide to make informed decisions when applying for a student loan for MBA in India.
Ready to embark on your MBA journey with financial confidence? Explore TATA Capital’s tailored education loans for MBAs today. Tata Capital attractive educational loan for MBA interest rates. Your aspirations deserve the right financial partner – discover the possibilities with TATA Capital.
Financial institutions can provide 100% loans for MBAs depending upon the loan amount and the education institute.
How many years to repay a MBA loan?
The typical number of years to repay MBA loan are five to seven. The duration depends on a number of factors such as loan amount, education loan for MBA interest rate and monthly EMIs.
Are there any foreclosure charges for MBA education loan?
Foreclosure charges for MBA education loans depend upon the bank or NBFC from where the loan is taken.
Can I get a laptop on an education loan?
Yes, you can get laptop on education loan. To determine if you are eligible to get a laptop under your education loan, you must consult your lender.
06 May 2025
5 mins read
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