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Master of Business Administration (MBA) makes for a good career choice to pursue. Jobs in the Corporate word are enormous. MBA is popular career choice among students. The diversity in fields in which you can obtain a master degree. You can do MBA even after engineering, mass communication. So it makes it easy for the children. Doing MBA from a reputed IIM will cost you around 15-20 Lacs of rupees. A Huge amount to pay for. Is it worth?Yes. If you see yourself as a person who can handle business, Managing is your forte, go for this course. MBA is surely for you.
Father: what are your future plans?
Son: I want to pursue MBA
Father: Are you sure you can do it?
Son: Yes, I am pretty sure about it and I only want to do MBA and nothing else
Father: Start preparing for CAT and get admission into the best IIM
Son: I will, but it will cost you more
Father: Don’t worry about the cost, I’ll take a loan from the bank.
Son: Have you done research on it
Father: Yes, I have done research and I will be taking advice from my Banking friends and friends in MBA field.
How to bear the cost of MBA and other expenses involved. Education Loan is the solution to every problem related to cost. Get a loan for financing MBA.
♦ Policy: The number of banks that provide loans is not limited. A Sheer number of loan providers are there in the market. Learn about the policy and clear what you are entitled to by default. Indian Bank Association backed by RBI has drafted model loan scheme for higher education. The purpose of this scheme is to make higher education affordable for all. It act as a base for other banks
♦ Institutes: Banks extend loans only for reputed and recognized institutes. Banks look for institutes which have placement as a student does. This way student is sure of a job and can repay. IIMs, XLRIs, FMS qualify for loans
♦ Expenses: What all expenses are covered under the loan you are obtaining. Generally, the mandatory tuition fee is covered and partial expenses of hostels, books, other purchases are covered
♦ Loan amount for MBA: Each course has a separate loan amount. MBA students can avail loan till Rs. 10 Lacs and even more if studying in an expensive institute.
♦ Margin requirement: do you need to pay margin? Margin payments are made by the borrower ( the portion is paid) and rest by banks. No margins till Rs. 4 Lac. Learn about all the conditions applying with this clause
♦ Security: Loan for MBA in India up to 4 lac requires no security, up to 7.5 lacs require security and above 7.5 lacs require a collateral security
♦ Loan Approval: How long it take to approve a loan for MBA. It takes 2- 3days. In case of loan is not advanced reasons are to be told to student
♦ Repayment: The time duration to repay the loan taken
⇒ Banks give a relief for unemployment period during the tenure of the loan. This is given for 2-3 times for 6 months
⇒ Students who start their own business are given a period of 2 years
⇒ A 2- year extension can be granted to students who are unable to complete their MBA in the given tenure
⇒ If a student services the interest accrued during the course and moratorium before the repayment term begins, he/she is eligible for a 1% subsidy in interest.
⇒ EMI in initial years is low as salary is less, it increases with the increase in the salary and becomes proportionate to it.
♦ Insurance: certain banks require life insurance of the student in order to obtain loan
♦ Processing Charges: Banks does not charge processing charges but the third party may charge.
♦ Tax saving : Education loan are tax less under Section 80E of Income Tax Act
♦ Comparison: Compare the educational loan for MBA of different banks and their interest rates. The Comparison will reveal the clear picture.
Other consideration to be made
♦ Interest rates
♦ Repayment Mode
♦ Documentation process
♦ Processing fees
♦ Additional benefit as credit guarantee
People avail the education loan despite the capability to fund MBA studies due to the following reasons:
♦ Interest rates are low
♦ Security and margins requirement are also relax
♦ Subsidies on Interest in case of early repayment
♦ Simple interest till moratorium
It is easy to avail the education loan for MBA. Proper repayment improves your credit score. It can be a good start in future to avail loans.