Education Loan for MBA

Have you ever wondered why so many people are interested in getting an MBA these days? Well, it's because the MBA degree has become popular for a bunch of reasons. The MBA helps people get better jobs and advance in their careers. A lot of Engineers pursue an MBA to broaden their career prospects beyond technical roles. However, an MBA is a costly affair and so, not every student can manage expenses for it. One such student was Sahil Chawla, who was the sole bread-earner of his family and got rejections from many top banks and lenders before getting in touch with WeMakeScholars.

An education loan for a student can be confusing at the start so one should carefully filter his/her choices between different types of education loans before choosing one. You have the opportunity to obtain a loan for your education, whether you're planning to study in India or abroad. This article will help you understand how to take an education loan for an MBA.

For the students who wish to do an MBA in India, they need to find the right kind of financing so that they can continue pursuing their education. As many Indian banks and other lenders offer a variety of education loan products, it is essential to know the details regarding the offered loan options. In this section, we will talk about all the different parameters of education loans for MBA in India such issues as loan amount, repayment of the loan, interest rate, and the best colleges. 

Top Banks offering Education Loan for MBA in India

To get an education loan for MBA in India, Here are the top lenders :

Govt banks offering education loans for MBA:

• State Bank of India
• Union Bank of India
• Bank of Baroda

Private banks offering education loans from MBA:

• Karur Vysya Bank
• ICICI Bank
• Axis Bank
• IDFC first bank

NBFC’s offering education loans for MBA:

• Avanse
• Auxilo
• HDFC Credila
• Incred

Interest rates for Education Loans to study MBA in India

The interest rates for education loans to study MBA in India range between 9% to 12% for public banks and 10% to 14% for private banks. However, there are also special education loan schemes for MBA if you are going to reputed institutes like the IIMs. Read the article till the end to learn about special MBA schemes for reputed universities.

Top 10 Colleges offering MBA courses in India

India has specific reputed colleges that provide quality MBA courses. Getting admission into a top institute will easily get you an education loan from top banks in India. However, these institutes are limited, so you should carefully analyze the history and ranking of the university and then enrol.

India has the following reputed colleges/institutes which equip you with all the skills that you need to grow your career. The following institutes are the top 10 ranked MBA colleges by NIRF(National Institutional Ranking Framework)

1. IIM Ahmedabad: 24.61 Lakhs
2. IIM Bangalore: 24.50 Lakhs
3. IIM Calcutta: 27.00 Lakhs
4. DMS IIT Delhi: 11.2 Lakhs
5. IIM Kozhikode: 20.50 Lakhs
6. IIM Lucknow: 20.70 Lakhs
7. IIM Indore: 21.14 Lakhs
8. XLRI Xavier School of Management: 28.6 Lakhs
9. National Institute of Industrial Engineering: 20.4 Lakhs
10. DoMS IIT Madras: 13 Lakhs

Eligibility for MBA in India

The top MBA institutes in India filter through all the applications to choose the best students. However, below is a list of general eligibility criteria to apply for an MBA in top institutes in India.

• Must have a bachelor’s degree of 3 years with at least 50%. Some institutes ask for a minimum of 60% aggregate marks.
• Most institutes also ask for a valid CAT/GMAT cut-off score. Certain institutes have their entrance examination so you need to score according to their preference.
• A few institutes also ask for work experience of a minimum of 2 years
• Candidates who are in their final year of graduation can also apply.

Indian students who get admission into a top university for an MBA through merit or by writing entrance exams are eligible for student loans for an MBA in India. Before applying, check other eligibility criteria according to the types of education loans.

As more and more students have an interest in studying MBA in foreign Universities grows among students in India education loans have emerged as a financial enabler. In this section, we focus on the basic aspects of MBA education loans including loan amount, tenure of repayment, processing charges, and rate of interest. You will also get to know the list of some of the best banks that provide education loans for an MBA abroad, as well as the reputed universities in the world where you can do an MBA. 

Top Banks Offering Education Loans for MBA Abroad

The following is a list of top lenders for education loans to study abroad

 Govt banks offering education loans for MBA:

• State Bank of India
• Union Bank of India
• Bank of Baroda

  Private banks offering education loans from MBA:

• Karur Vysya Bank
• ICICI Bank
• Axis Bank
• IDFC first bank

   NBFC’s offering education loans for MBA:

• Avanse
• Auxilo
• HDFC Credila
• Incred

Interest rates for Education Loans to study MBA Abroad

The interest rates for an education loan to study abroad in public banks range from 9 to 11% whereas, in private banks/lenders, it ranges from 10 to 14%. You can check the updated interest rates for the lender you are going for. There are also interest subsidy schemes where you will be able to get a subsidy for the moratorium period.

Top Universities Offering MBA Courses Abroad

Below are the best universities in the world right now ranked by QS as top universities to pursue MBA abroad.

Eligibility for MBA Abroad

The eligibility requirements for an MBA abroad usually differ with the program and the university you are going to. However, below are a few basic eligibility criteria requirements for MBA abroad.

• Must have completed a bachelor's degree from a recognized university.
• Most universities prefer a work experience of at least 2 years.
• Language proficiency tests like IELTS, TOEFL, or PTE.
• Entrance exams such as GMAT or GRE.

You will also have to provide essays and a resume with all the other documents. Also, certain universities conduct interviews before admission, hence you need to be prepared for that too. An Indian citizen who has attended a foreign university for an MBA is eligible for an education loan from top banks in India.

The applicants will need to arrange the following documents to apply for an education loan for MBA

1. Proof of identity: Any valid identification document like Aadhaar Card, Voter ID, Passport, or Driving License.
2. Proof of address: Any official document showing your current address, such as Aadhaar Card, Voter ID, Passport, or Driving License.
3. Proof of admission: A letter from the institution confirming your admission.
4. Academic records: Marksheets of your 10th, 12th, and graduation, along with results of any entrance exams like CAT, GRE, TOEFL, or IELTS for admission purposes.
5. Recent three months' pay stubs or a company-issued salary certificate.
6. Form 16 for the last two years from your employer.
7. Income Tax Return (ITR) filed over the past 2 years.
8. Financial documents like the balance sheet and profit and loss account for the previous three years (if the co-applicant is self-employed).
9. Affidavit from the property collateral owner (on Rs. 20 or 100 stamp paper).
10. Extra cheque to cover attorney and evaluator charges (if required by the bank).
11. Letter explaining any gaps in employment or education, printed on a Rs. 100 stamp paper.
12. Payment slips of any advance payments that you have made to the university
13. Previous loan account statements, if you have any pending loans( last 1 year)

Collateral documents(for collateralized loans)

You will require collateral documents only if you are going for a collateralized loan. The collateral documents list varies with the state you are applying from. Check below for the requirements list according to the state you are applying from.

• Tamil Nadu
• MP and Chattisgarh
• Amritsar
• Kerala
• Jaipur
• Goa
• Gujarat
• Andhra Pradesh
• West Bengal
• Delhi
• Mumbai
• Hyderabad
• Karnataka
• Jharkhand
• Pune

Are you planning to do an MBA and require an easy, hassle-free loan process? If yes, then do read on to know how WeMakeScholars can help you. Everyone wants to get an education loan for an MBA without much paperwork and get the best deal in the least time. This is where WeMakeScholars comes into the picture and helps students find education loans easily and without much hassle. In this section, let’s understand how WeMakeScholars works with students and banks to ease this process. 

• Step 1: Request a callback from the website
• Step 2: You will receive a callback from a financial officer from WeMakeScholars. He/she will check your eligibility for an education loan by asking you basic questions about your education, co-applicants, and collateral.
• Step 3: The financial officer will then analyze your profile and suggest the best options to get an education loan. He/she will then also connect you to those lenders.
• Step 4: The next steps in the process will be taken by the assigned lenders. However, your financial officer from WeMakeScholars will also be in touch with you and you can ask him/her about any doubts that you have regarding the process.
• Step 5: You will get the sanction in the time that was promised to you by the financial officer. 

Why choose WeMakeScholars for an Education Loan for an MBA?

WeMakeScholars is an organization that is supported by the Ministry of IT, govt of India. We at WeMakeScholars provide students with a range of lenders from whom they can get the best education loan offer. Here are the detailed benefits of going through WeMakeScholars.

• Lower Interest rates: We are partnered with 14+ banks(public/Pvt) and hence they provide education loans at 0.5% to 2% lower rate of interest than when you go to them directly.
• Profile Analysis: We thoroughly analyze your profile and suggest the best option for your education loan.
• Faster process: We process your education loans 50% faster than when you go directly through banks. In a few exceptional cases, we were also able to sanction education loans within 2 days after the submission of documents.
• End-to-end support: We not only support students during the loan sanction process but also assist them in the repayment phase.
• Tax benefit: Students going abroad through an education loan are eligible for tax benefits under certain exemptions like 80E. We educate them about all these benefits.
• Cashback offered: When you go through WeMakeScholars, you get a cashback of Rs 3000 in the first disbursement.

MBA is one of the most popular degrees and banks and lenders in India provide special education loan schemes to different MBA streams. Whether it is an Executive MBA or the university preference is a particular region such as Tamil Nadu or even a top-ranked university like Symbiosis, the university loan plans to meet the different needs of the students. Here, we discuss a few more specialized MBA education loans available to students in India and for studying in foreign universities. Whether one is looking for an executive MBA, distance learning, or studying in Canada or the USA each loan scheme has its characteristics such as loan limits, interest rates, maturity periods, and so on.

Education Loan for Executive MBA in India

• Executive MBA is for working professionals who have at least 2 years of experience. Executive MBA offers the benefit of pursuing an MBA while doing a job. You can obtain an education loan of up to 2 Cr to pursue an executive MBA in India, though you wouldn’t need that much. 
• We have secured and unsecured loans for executive MBA programs. The best part about the executive MBA program is that you do not need a financial co-applicant as you are already earning for yourself.
• You can get an unsecured education loan of up to 40L for MBA at an interest rate of 11% to 12.5% for top universities. Here, your processing fee will be 1% of the loan amount. After loan disbursement, your immediate loan interest repayment starts.
• You can get a secured education loan for an MBA at an interest rate of 9% to 9.5% for top universities with immediate loan interest repayment.

Note: Education loan for an Executive MBA depends on the income of the applicant, for example, let's say the income of the student is 50k per month, then the student is eligible for a loan of up to 50Lakh rupees. Higher loan slabs are designed based on the student's income.

Education Loan for MBA in Tamil Nadu

• Tamil Nadu has some of the best MBA schools so naturally, students want to pursue an MBA in Tamil Nadu. According to data, the average education loan amount required by students in Chennai, Coimbatore, or Madurai for studying within India is approximately INR 15 lakhs, and for studying abroad it is around INR 45 lakhs. Education loan interest rates in Tamil Nadu range from 8.5% to 13%, depending on the type of loan and the lender. 

Education Loan for Symbiosis MBA

• Symbiosis Institute of Management is one of the best MBA schools in India. It has one of the best placement results and has limited candidates in its batches every year. Students can obtain up to 1 Cr education loan to study MBA in the symbiosis.

Education Loan for MBA in Canada

• Seeing the demand of Indian students to study in Canada, banks and lenders have special education loan schemes. One such scheme is the Education Loan for MBA in Canada scheme where they offer up to 2 Crore Secured education loans and up to 1 Crore unsecured education loans.

Education Loan for MBA in the USA

• An MBA degree from the USA is like a dream for many students. However, every student dreaming of pursuing an MBA in the USA might not have sufficient funds. That’s when the education loan comes into the picture. Banks offer education loans for MBAs in the USA at flexible terms. Students can avail of an education loan of up to Rs 1.5 Crore or even more at interest rates starting from 8.50% to study in the USA. The cost of study in the USA is generally higher than in the rest of the countries. Moreover, the living expenses in the USA are also around Rs 10 -12 lacs annually.

Education Loan for Distance MBA

• Students who do not want to attend offline classes can also obtain an MBA degree by pursuing a distance MBA. Most banks do prefer education loans for Distance MBA for courses like executive MBA. They offer the same kind of features of education loans for distance MBAs.

State Bank of India Education Loan for MBA

SBI bank usually offers up to 7.5 lacs of unsecured education for students to study in India and abroad. However, they have a special consideration for students wanting to pursue top courses like MBA in reputed institutes like the IIMs. They offer up to 50 lacs unsecured education loans to pursue an MBA in top institutes in India.

Scholarships are another way through which students have done well in their academics. The scholarship awards can be used to fund an MBA either in India or in a foreign country. MBA scholarships are also available from many institutions and organizations thus making it easier for students to afford the fees for it. In this section, we will talk to you about a few scholarships for MBA candidates. By going through these scholarships and finding one that suits your requirements, you can reduce some of the cost of your MBA education if you are planning to study in India or even abroad.

Scholarships for MBA abroad

Below are a few scholarships for students to fund their MBA abroad. You can check out the eligibility criteria by going through particular links.

• Sussex MBA Scholarships 2023
• Hult International Business School Scholarships
• HKUST MBA Women Awards 2023
• ANU Research School Of Management Master Of Business Administration Scholarship 2023
• Imperial Excellence Scholarship 2023

Scholarships for MBA in India

Universities and certain institutes in India are providing scholarships to Indian students to study MBA in India. Go through the links to check eligibility and other factors.

• SP Jain School Of Global Management - Postgraduate Merit Scholarships In India, 2022
• Aditya Birla Group Scholarships in India, 2022
• Indian School Of Business - ISB Merit Waivers In India, 2023
• ISB - AIESEC Scholarships In India, 2022
• AMBA 50th Anniversary Scholarships