Education Loan for MBA: Know All About MBA Education Loan Options
Know all about MBA Education Loan options- As the time draws closer for offer letters from B-schools to arrive after GD/PI rounds are conducted and the results get announced, several MBA aspirants cringe and back out while investing their lifetime in B-schools because of their skyrocketing MBA fees. Read more about how to take education loan for MBA, tenure/ repayment duration, study loan for MBA interest rate, MBA education loan eligibility, What is the maximum loan for MBA and how much loan is required for an MBA.
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Educational Loan for MBA
For example, MBA admission in India could be anywhere between Rs. 5 to 20 Lakhs – an amount high enough to get students thinking and planning their finances. But money isn’t something that should stop anyone from getting into their dream B-school, and that’s why it’s time to turn that dream into a reality through an education loan for MBA.
Interestingly, Hari, whose father is a farmer and cannot afford a pricey MBA admission for his son, has found a solution to his distress. After getting calls from top B-schools, Hari was initially in two minds about going for MBA admission because he lacked the funds. Thanks to MBA education loans offered by banks and financial schemes of the government and other private sectors, bright students even from low-income families like Hari can achieve the desired independence and fund their education.
Today, loans for MBA admission are available with almost all major banks. Some banks even have tie-ups with some of the premier institutes. These banks offer the students a special rate of interest which is normally lower than the market rate of interest. You might feel a little apprehensive that MBA student loans are complicated monsters. But worry not. However, the candidates applying for the MBA educational loan must meet the MBA education loan eligibility criteria decided by the banks.
This article on Know All about MBA education loan in India Options by Careers360 will spell out all the basics of an MBA admission, the various MBA education loan options, top MBA loan providers and the steps to avail the study loan for MBA from various nationalised and private banks. During your ‘free time’ after you’re done with your MBA admission decision and are awaiting your offer letter anxiously, make use of this in-between time to research thoroughly about MBA education loan options.
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Eligibility For Education Loan - MBA Admission
One can avail of a student loan for MBA admission if she/he is an Indian citizen and has documentary proof of having secured a confirmed admission to the course. It should be kept in mind that most lenders give a study loan for MBA to individuals in the 16-35 years age group.
To get a Study loan for MBA admission is a way easy if one gets admission to top management colleges like IIM (Indian Institute of Management), IIT (Indian Institute of Technology), FMS (Faculty of Management Studies) Delhi, XLRI Jamshedpur, SPJIMR Mumbai and few others. In such cases, some private banks and MBA education loan providers like Credila and Avanse might even call the students themselves.
The contact details of students are often shared by the institute with the banks and MBA student loan providers they collaborate with. This makes it easier as the bank may sometimes come to the customer’s doorstep to carry out the study loan processing formalities for MBA admission.
Expenses covered under Education Loan
Candidates have to encounter various expenses during MBA admission other than just the tuition fees. An MBA education loan in India covers 100 per cent of the basic course fee. Usually, the bank may also cover other related expenses while granting a study loan for MBA, like:
- Fee payable to college (tuition fee) and hostel (accommodation)
- Examination, Library, and Laboratory fee
- Books, types of equipment, instruments and other study material
- Caution deposit, building fund, refundable deposit supported by Institution bills or receipts.
- Travel expenses, passage money for studies abroad
- Purchase of Laptops, and computers-essential for completion of the course
- Any other expenses required to complete the course- like study tours, project work, thesis etc.
- Even the cost of a two-wheeler is covered as part of an MBA education loan by leading banks.
One of the MBA student loan schemes provided by the State Bank of India (SBI), called the SBI Global Ed-Vantage Loan Scheme, gives loans to students ranging from Rs. 20 lakhs to Rs. 1.5 crore with a 9.5 per cent to 10 percent interest rate. Under the SBI Global Ed-vantage Scheme, one may get 90 per cent coverage for expenses such as tuition fees, admission fees etc. and the remaining 10 per cent should be borne by them. Before going to approach a bank, students should know about the education loan for MBA interest rate.
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Top 5 Simple Tips to Secure a Loan
- First of all one need to calculate their expected expenses
- Compare MBA education loans from different banks
- Search for the cheapest MBA education loan in India
- Pay interest during the course period
- Opt for the short repayment period
- Candidates can also use the education loan for mba calculator of different banks to know the eligibility, education loan for MBA interest rate and repayment period.
Documents required for Education Loan for MBA
- Loan application in bank's format
- Proof of admission to the course
- Passport size photos
- Address and age proof if you are not an existing bank 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 (student’s or parents’)
- A brief statement of assets and liabilities of the borrower.
Also Read:
- IIM Fees for MBA - Check MBA Fee Structure for IIMs
- MBA Fees in India: Top Colleges, Fee Structure, Courses, Cost of MBA
- 5 Money Saving Tips For Your MBA
Top Banks offering Education Loan for MBA in India
Check out the below table to learn about the Private banks for MBA loans in India and their interest rate, and tenure. The table tells what is the maximum education loan offered for MBA in India.
Bank Name | Max. Loan Amount (in Rs.) | Education loan for MBA interest rate | Repayment/Payback Tenure |
MBA educational loan SBI | Upto 30 Lakhs for top IIMs and top-rung institutes | 9.35%-10.70% *Girls will have 0.50% concession | 7 to 12 years |
Oriental Bank of Commerce | Upto 25 Lakhs for Category A institutes, Upto 10 Lakhs for Category B institutes | 10.25% to 10.75% *Girls and SC/ST category students will have 0.50% concession | Upto 15 years |
Allahabad Bank | Upto 20 Lakhs depending on the institute | For IIMs: 8%, Others: 10% | 7 years |
Bank of Baroda | 10Lakhs, upto 20Lakhs for premier institutes | 10.5% to 11.5% *Girls will have 0.50% concession Added concession of 1.00% for students of premier schools (IIM, IIFT, XLRI etc.) | 5 years |
Canara Bank | Upto 20 Lakhs | 10.65% | 10 to 15 years |
Axis Bank | Upto 10 Lakhs | 15% *Girls will have 0.50% concession | 7 years |
Punjab National Bank | Upto 20 Lakhs | 8.15% to 8.75% | 10 to 15 years |
IDBI Bank | Upto 20 Lakhs | 9.7% | 10 to 15 years |
Avanse DHFL | Upto 10 Lakhs | 11.5% | 10 years |
UCO Bank | No ceiling | 10.60% | 10 to 15 years |
ICICI Bank | Upto 10 Lakhs | As decided by bank upon amount usage. *Girls will have 0.50% concession | 5 to 7 years |
HDFC Bank | Upto 10 Lakhs | 14.50% | 15 Years |
Union Bank | 20 Lakh | 10.25% | 15 Years |
Bank of India | Upto 30 Lakh | 9.95% to 10.45% *Girls will have 0.50% concession | 10 to 15 years |
Central Bank of India | 30 Lakh | 9% *Girls and SC/ST candidates will have 0.50% concession | 15 years |
Note: The names of the banks have been arranged in random order. The interest rate keeps changing. Candidates are suggested to check with the bank to know the exact interest rate before applying.
Tenure & Interest Rate of MBA Loan?
Repayment in EMIs within a maximum repayment period of 15 years (180 EMIs). EMI repayment starts 12 months after completion of studies or 6 months after getting a job, whichever is earlier.
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IIM Sambalpur Bank Contact Details for Education Loan Purpose for MBA
| S.No | Bank Name | Contact Person | Contact Number | Email ID |
| 1 | State Bank of India | Chief Manager, SBI Branch Burla, Sambalpur | 8763451735, 9674719922 | sbi.02034@sbi.co.in |
| 2 | Union Bank of India | Mr. Mukesh Kumar Dewangan, Ms. Nibedita Bal | 9981545454, 9861633487 | pmo.sambalpur@unionbankofindia.com, mukesh1.durg@gmail.com burla@unionbankofindia.com |
| 3 | Bank of Baroda | Mr. Gourab Haripal | 7328803810 | credit.sambalpur@bankofbaroda.co.in |
| 4 | Punjab National Bank | Mr. Pabitra Kumar Sahoo | 9692265577 | cosbpmtk@pnb.co.in |
| 5 | Central Bank of India | Mr. Suman Kumar Senapati, Soumendra Kumar Sahoo | 9778516622, 9439193473 | creditsambro@centralbank.co.in marketingsambro@centralbank.co.in |
| 6 | Canara Bank | Chief Manager, Sambalpur Branch | 7605009218, 7605009237 | cb0185@canarabank.com |
| 7 | HDFC Bank | Mr. Debabrata Mishra | 7504963538 | debabrata.mishra@hdfcbank.com |
| 8 | Axis Bank | Mr. Bikash Khatuna | 9776910230 | bikash.khatua@axisbank.com |
| 9 | ICICI Bank | Mr. Prabhat Nanda, Ramesh Sahoo | 8328934338, 7328814845 | - |
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 a maximum loan at minimum fixed interest should be preferred. Normally for a Rs. 10 lakh loan, the borrower will end up paying around Rs. 16 lakhs at a 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 up to 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, the 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 education loan for MBA without collateral security.
How to Get Education Loan for MBA
Today, technology has made it very simple to apply for an education loan from anywhere in the country. If a candidate’s bank allows online loan applications, then his loan is just a click away. Here is the procedure:
- The student has to complete an online education loan application form.
- The bank will follow up with the student and parents to answer questions.
- A representative of the bank will visit the student’s house and collect a signed application form with supporting documents.
- The student will provide a completed education loan application form with all the required supporting documents.
- A credit team from the bank will review and underwrite the education loan application.
- The bank will then approve the education loan or ask for any additional information required from the student’s end.
- Once the student’s signature is obtained on the education loan agreement, all the loan disbursement formalities are completed.
- The education loan amount is deposited in the required bank account electronically (student’s or institute’s, whichever is required).
Question: Can I get a Rs. 30 lakhs education loan?
Answer: Yes, if the applicants fulfil the eligibility criteria and submit a collateral security equal to the required MBA student loan will receive Rs. 30 lakhs as an MBA education loan from any of the banks in India.
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Repayment of MBA Education Loan
Repayment of loan for MBA Education starts one year after completion of the course or six months after securing a job, whichever is earlier. This relaxation period is termed as a moratorium. The repayment period is generally between five and seven years but can be extended beyond that as well, depending on the bank’s terms and conditions.
Benefits under the Income-tax Act - The borrowers of the education loan get an income tax benefit under Section 80(E) of the Income Tax Act of India.
Central Sector Interest Subsidy Scheme, 2009 on Model Education Loan Scheme (MELS) of IBA
Under this Scheme, an Interest Subsidy is given to support students from Economically Weaker Sections (EWS) whose annual parental income is up to Rs. 4.5 Lakhs from all sources. This subsidy is given during the moratorium period i.e., Course period plus one year on MBA Education loan taken from the Scheduled Banks under the Model Education Loan Scheme. This subsidy is allowed only once. The Nodal Bank is Canara Bank, Bengaluru. Some banks including the State Bank of Hyderabad and the Union Bank of India offer special rates of interest for girl students availing MBA educational loans.
Vidya Lakshmi Portal
Vidya Lakshmi Portal is an education Loan Portal handled by NSDL e-Governance Infrastructure Limited, Mumbai. Under this, any student can have access to education Loans. The Portal is linked with Scheduled Banks. Vidya Lakshmi Portal is a gateway to the Banks through which the student can proceed further with the education loan application and track it right from the inception stage of loan application to the sanction of the loan.
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Frequently Asked Questions (FAQs)
Yes, eligible candidates will get a loan of up to 100 per cent as an education loan for mba.
Yes, most banks offer loan approval before your confirmed admission. This helps you show proof of funding for your admission.
EMI typically starts one year after completion of the course or six months after securing a job, whichever is earlier.
Usually, for loans up to Rs. 7.5 lakh, you may not need to give collateral or security, but for loans above that, you will have to. A collateral need not only be a residential property. Lenders accept fixed deposits, insurance policies, National Savings Certificate and even Kisan Vikas Patra as collateral.
Here’s a list of banks offering concessions on MBA Loans for female students across the country.
- HSBC’s India Student Education Loan Program- Their education loans are “priced at a further discount of 50 BPS for female students in order to promote their education.” The bank offers this as an additional discount on its interest rates to female students.
- Central Bank of India’s Cent Vidyarthi Program- For female students, they have lowered the base rate of interest for female students at 1.5 percent, as compared to two percent for male students.
- Corporation Bank’s Corp Vidya Program- The bank offers concession in rate of interest at 50 BPS for girl students.
- Overseas Bank’s Vidya Jyoti Program- They allows interest concession at 0.5 percent on all education loans to girl students for pursuing education in India and Abroad.
- State Bank of India’s SBI Student Loan Scheme Program- Like other banks, SBI also has a lower rate of interest for girl students at 0.5 percent.
- Allahabad Bank’s education loan- Rebate of one percent will be allowed under all the slabs for girl students.
The Government of India wants to ensure that nobody is denied professional education because he or she is poor. Indian Banks' Association (IBA) has formulated a comprehensive model educational loan scheme for adoption by all Banks.
Yes, Candidates who wish to pursue an MBA programme with a course fee up to Rs. 7.5 lakhs can apply for an MBA educational loan without any collateral security. To apply for the educational loan for an MBA above Rs. 7.5 lakhs, the collateral security is required to apply for the loan.
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Questions related to MBA
Hello
Yes , you are eligible .
Completing a 2 years Agriculture Diploma course makes you eligible for an MBA in Agriculture Business Management , as many programs accept students with backgrounds in agriculture or related fields . You likely need to meet additional requirements like entrance exams like such as CAT , MAT or other . specific institution or universities may have their own eligibility criteria .
For more details check link given below :
https://www.careers360.com/courses/mba-in-agri-business-management
Thank you
Hello,
If you are currently in your final year and have not yet completed your bachelor’s degree, then selecting “appeared for bachelor’s” is the correct option. This option typically indicates that you have not yet graduated but are in the process of completing your degree.
The “bachelor degree” option would be appropriate only if you had already completed and been awarded your degree. Since you are still pursuing your final year, your initial selection of “appeared for bachelor’s” is accurate for your situation.
To get more information related to SNAP exam, visit : https://bschool.careers360.com/articles/snap-2024
Hope it helps !
Hello aspirant,
MBA 1st year subjects are as follows:
- Organizational Behaviour
- Quantitative Methods
- Managerial Economics
- Financial Accounting
- Marketing Management
- Human Resource Management
- Business Communication
- Information Technology Management
- Organization Effectiveness and Change
- Management Science
- Economic Environment of Business
- Financial Management
- Management Accounting
- Production and Operation Management
Thank you
Hope it helps you
The student cannot join the postgraduate MA program directly in the second year of the MA after completing the MBA.
Universities generally expect students to begin the first year of a masters' program even though they had qualifications at the level of a bachelor's degree. The university's curriculum along with the courses are planned to give an in-depth knowledge of the subjects.
But you could opt for:
Postgraduate Studies:
Research Career: In case research interests you, then you can pursue a Ph.D. in your specific interest.
Specialized Master's Programs: Find any specific master's course that supports the career goal.
Professional Certifications:
Make a professional certification in CFA, CA, or FRM to enhance the professional skills and better opportunities in the career field.
Job Entry via MBA
After gaining an MBA from a renowned institution, it's possible to get entry into the corporate world where the diversity in the career field is assured.
In the end, it would depend on what you would like and what you are particularly interested in. It will be better if you take a suggestion from your academic advisor or career counselor.
Top MBA/PGDM colleges in Hyderabad are as below:
Tier 1
Indian School of Business, Hyderabad: Global orientation and an intensive curriculum
Institute of Public Enterprise (IPE) Hyderabad: Specialized programs in public policy and management
Tier 1
Institute of Management Technology (IMT) Hyderabad: Interface with industry along with an applied approach to teaching management.
VJIM: Some academic rigors integrated by the right industry exposure
University of Hyderabad: A research-oriented, quality academic institution
Tier 2
Malla Reddy Engineering College: Offers a range of different management programs
Osmania University: Old but still a good university
Jawaharlal Nehru Technological University Hyderabad: Offers MBA through affiliated colleges
Key selection criteria for a college
Curriculum: Relevance and intensity of the curriculum
Faculty: Quality and experience of faculties
Infrastructure: Access to state-of-the-art facilities, such as libraries, labs, and classrooms
Placements: Record of the college in placements, with regard to the type of companies that recruit students from the college.
Fees: The program fee, including tuition and other expenses.
Location: The location of the college, considering its proximity to major industries and companies.
https://bschool.careers360.com/colleges/list-of-pgdm-colleges-in-hyderabad
https://bschool.careers360.com/colleges/list-of-mba-colleges-in-hyderabad
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