This is where education loans play an important role. They assist in filling the financial gap between the savings of a student and the cost of the MBA program. With moratorium periods, flexible repayment terms and tax exemptions, education loans enable students to concentrate on their studies without worrying about payments immediately. The loan can be returned by students when they start earning money, making investment in education quite easy.

To make this support more accessible, the government and private financial institutions have also stepped in. Public sector banks such as SBI and Bank of Baroda also have special education loan schemes for students admitted to top management institutes. The government has also established platforms such as the Vidya Lakshmi Portal which allows students to apply for loans from several banks simultaneously. Private banks such as ICICI, HDFC and AXIS Bank offer quicker approvals and customised loan facilities particularly to students studying in private colleges. All these measures ensure that a meritorious student doesn't lose the opportunity for an MBA degree because of financial constraints.

Why Consider an Education Loan for an MBA Program? 

Pursuing a management degree from a premier business school in India can be expensive with the tuition cost ranging from ₹10.00 - ₹30.00 Lakhs. Apart from the tuition fees, the students also have to manage other expenses such as hostel fees, mess fees, books, travel and other cost. All these expenses combined together put financial burden on many families. Thereby, restraining them from doing an MBA from top institutions in India. 

An education loan for MBA will ease the burden regarding the tuition fees and other expenses related to it. The education loan fulfils the dreams of the students who want to study MBA at premier management institutes in India such as the IIMS, XLRI, ISB etc.  This allows the students to focus on their learning instead of worrying about their finances. 

Education loans also have flexible repayment options. All banks provide a moratorium period a reprieve from EMI payment during the course duration and another 6–12 months after the course. This provides time for a student to find employment before repayment can start. They also have the option of longer repayment tenures and in certain instances, low or zero EMIs for the first few months. These aspects render education loans a brilliant and pragmatic choice for those students who wish to pursue their dreams of doing an MBA confidently and free of financial pressures.

Key Factors of MBA Education Loan 

The key factors regarding the MBA education Loan in India is given below : 

Education Loan Eligibility Criteria 

In order to secure a loan for MBA education in India, here is what the students must qualify for:

• Minimum Marks: They must have minimum 60% marks in graduation.

• No Academic Gaps: No gaps in education without a valid explanation.

• Co-applicant Credit Score: Their co-applicant (either a parent or guardian) must have a CIBIL score of more than 700.

• Valid Reason for Gaps (if any): If there are gaps in their education, they will be required to give a valid reason (like a medical certificate).

• Age Limit: The Reserve Bank of India hasn’t fixed an age limit but some banks may have a limit of 35 years.

Steps to Apply For MBA Education Loan 

In today’s digital age applying for MBA education loan has become quite simple and can be done easily in an online mode. As most banks offer online loan application for the students, given below are simple steps that they can follow in order to apply for MBA education loan: 

• Compare Loan Options: Compare various banks and lenders to select the best education loan for their needs.

• Apply Online or Bank Branch: They can either complete the loan application form online or go to your nearby bank branch.

• Receive a Call from a Bank: Once they apply, a representative of the bank will call them to get to know their requirements and clarify questions regarding the loan.

• Home Visit by Bank Representative (sometimes): A bank representative may visit their house in order to assist them with filling out the form and obtaining the documents required.

• Loan Application Review: The bank will review their application and documents. They may contact them if they need anything else.

• Loan Approval: Everything being correct, their bank will then approve their loan and request them to sign the final contract.

• Loan Disbursement: Typically, the loan money is disbursed directly to their college/university. Sometimes it may be disbursed to their own bank account.

• Bills & Receipts: Genuine bills and receipts should be presented to establish how the loan funds were utilised on education-related expenses.

Documents Required for Education Loan 

To apply for an education loan, Students are required to keep these documents ready in scanned form:

• Academic Records: Marksheets from Class 10 to graduation.

• KYC Documents: PAN card, Aadhar card, passport or voter ID.

• Proof of Address: Electricity bill, ration card, Aadhar card, bank passbook or voter ID.

• Co-applicant’s Bank Statement: Last 6 months of bank transactions.

• Income Proof: Co-applicant’s ITR (Income Tax Returns) of the last 2 years.

MBA Education Loan Options from Top Banks in India 

Note: For more details regarding MBA education loan in india, students must visit the list bank’s official website. 

Top MBA Colleges in India Along With Their Fee Structure