Master of Business Administration (MBA) makes for a good career choice to pursue. Jobs in the Corporate world are enormous. Hence, an MBA is a popular career choice among students. The diversity in fields in which you can obtain a master’s degree. You can do MBA even after engineering, mass communication. So it makes it easy for children. Besides, getting an Education Loan for MBA is also very easy, thus financial aspects are covered in that.
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.
How to bear the cost of an MBA and other expenses involved?
Education Loan is the solution to every problem related to cost. Get a loan to finance MBA. Check the required things before the loan.
The number of banks that provide loans are plenty. A sheer number of loan providers are there in the market. Therefore, learn about the policy and clear what you are entitled to by default. Indian Bank Association backed by RBI has drafted a model loan scheme for higher education. The purpose of this scheme is to make higher education affordable for all. It acts as a base for other banks
Banks extend loans only for reputed and recognized institutes. Banks look for institutes that have placement as a student does. Because this way a student is sure of a job and can repay. IIMs, XLRIs, FMS qualify for loans
What all expenses the loan you are obtaining cover. Generally, the mandatory tuition fee is covered and partial expenses of hostels, books, other purchases are covered
4. The loan amount for MBA
Each course has a separate loan amount. MBA students can avail of a loan till Rs. 10 Lacs and even more if studying in an expensive institute.
5. Margin requirement
Do you need to pay the 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.
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 collateral security.
7. Loan Approval
How long it takes to approve a loan for an MBA? It takes 2- 3days. In case of a loan is not advanced reasons are to be told to the student.
The duration to repay the loan should be known. It varies as follows:
a) Banks give relief for the unemployment period during the tenure of the loan. This is given 2-3 times for 6 months.
b) Also, students who start their own business are given 2 years.
c) A 2- year extension can be granted to students who are unable to complete their MBA in the given tenure.
d) If a student services the interest accrued during the course and moratorium before the repayment term begins, 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. After that, it becomes proportionate to it.
Certain banks require life insurance for the student to obtain a loan.
10. Processing Charges
Banks do not charge processing charges but the third party may charge.
11. Tax saving
Education loan is tax less under Section 80E of the Income Tax Act
Compare the educational loan for an MBA of different banks and their interest rates. Therefore the comparison will reveal the clear picture.
Other consideration to make before going for Education Loan for MBA
- Interest rates
- Repayment Mode
- Documentation process
- Processing fees
- Additional benefit as credit guarantee
Why people avail the education loan for MBA despite the capability to fund MBA studies
- Interest rates are low
- Security and margins requirement are also relaxed
- Subsidies on Interest in case of early repayment
- Simple interest till moratorium
Therefore, it is easy to avail of the education loan for MBA. Proper repayment improves your credit score. It can be a good start in the future to avail of loans.
Apply for an education loan with us. Simply call at 95.5511.5533 and we will guide you.