Before applying for an education loan, make sure to check whether your college/university offers scholarships or grants. A scholarship may not cover the entire expenses, but may reduce it up to some extent. Apart from just the basic fees of the course, there are other expenses that would arise while pursuing studies. Try to eliminate unnecessary expenses to save money for the needful. Post-applying for business studies, estimate your expected salary after completion of the course. This will help you figure out whether you will be able to repay the loan and the maximum amount of loan that can be borrowed.
Our country has some of the most reputed business institutes for MBA but some students believe in expanding their horizon and flying overseas to pursue MBA. It is needless to say that studying in a foreign country is much more expensive than studying in your own country. If you are planning for the same, you will have to avail a higher education loan for MBA amount. Usually, loans below INR 4 lacs do not require any collateral security, loans between INR 4 to 7.5 lacs require collateral in the form of a satisfactory third party guarantor. Loans above Rs. 7.5 lacs require collateral security in any form of residential property agreement (flat/apartment), life insurance with a surrender value equivalent to the loan amount, fixed deposits, existing house or non-agricultural land can be mortgaged to obtain a loan.
Government banks are the first source that comes to our minds when we think of a loan, but, these days, many private financial firms have also emerged in the market that offer education loan for MBA at interest rates as low as 12.75% with a processing fee of mere 1-2%.When it comes to age criteria, the applicant is required to be between 18 to 35 years of age to avail a loan. Considering the fact that students aren’t employed, a co-applicant is a must to apply for any kind of education loan. The co-applicant can be the borrower’s spouse, parent or sibling and must have a stable source of income. As a means of income proof, the lender may ask for salary slips (salary slips are required as a part of the documentation by all lender bodies) of the co-applicant.