Education Loan
Banks Offering Education Loan for Pursuing MBA
MBA stands for Master of Business Administration. At present, it's one of the most popular courses in India and is being pursued by lakhs of students per year. The candidates apply for the course through the entrance exams like CAT, MAT, KMAT, PGCET, SNAP, GMAT, and other private exams conducted by the individual colleges.
The average fee for an MBA program ranges between 3 lakhs to 20 Lakhs and is higher for any top ranking college. And there education loans come into the picture and banks offering different education loans schemes, which can be avail by the students under the terms & conditions given by the banks.
Why Education Loan for MBA?
Education loan to pursue MBA is the economical way of taking education. The students who cannot finance the fees from their parents have to find an alternative option to fulfill their dream of pursuing an MBA.
The importance of education loans for MBA are,
How to Take an MBA Education Loan?
Every college is associated with different banks that offer loans. But there are no steps given that help in making and understanding the procedure easily.
Below are the steps explained for taking a loan for MBA:
- Step 1: After researching and referring to catalogs, it is very important to compare the different rates of different banks.
- Step 2: After aspirants choose the bank of their choice, they can either pay a visit to the bank or fill an application on the bank's website.
- Step 3: After the application is filed, students receive a call from the respective bank; it could be a representative who would ask for details and requirements of the aspirants.
- Step 4: Students are asked to visit the bank with the required documents. The students can also take their guardians as it would be helpful for understanding.
- Step 5: The aspirants are asked for every document to be submitted to the bank post, where there is a review of the documents done by the bank.
- Step 6: The bank then sends the verified procedure and documents in a mail, after which the bank approves the loan.
- Step 7: The banks then verify certain criteria with the college the aspirant would be admitted to.
- Step 8: After the loan approval, the amount is deposited into the institute's account. In some cases, it may be deposited into the student's account as well.
- Step 9: If there is any excess usage of the amount, students will be required to provide bills and receipts to redeem the same.
Expenses Covered under Educational Loan
Apart from just the cost for the course, the Education Loan amount covers a list of related things too.
Here's the list of what the loan amount will cover:
- Tuition fees
- Hostel fees/housing
- Examination, laboratory, library fees
- Insurance Premium
- Travel expenses for students studying abroad
- Cost of books, uniform, equipment, instruments
- Cost of gadgets required for the completion, of course, such as computers, laptops.
- Other study-related expenses such as study tours/project work
To select the bank is to compare different loan schemes available at various government and private banks that offer education loans for MBA programs.
Find the below checklist before choosing a bank or a bank scheme for pursuing an education loan for MBA.
- No margin money; the banks decide whether they can fund the entire MBA education, including tuition fee as well as other additional expenses or not.
- These expenses are called margin money which is funded by banks and would be very beneficial. Finding the bank that does not charge Loan Processing fees, these charges by banks can differ from INR 4000 to INR 5000 which is also a loss for the students. So find a bank that does not charge or charge less nominal processing fees.
- Evaluate Interest Rate Structure so that the students do not cost more than the base rate or hidden interest rates.
- Interest during the Moratorium Period should include the MBA course duration plus the grace period granted by the bank before the repayment of the loan begins.
