MBA is currently the most in-demand postgraduate degree worldwide, with aspirants increasing year after year. Many ambitious students wish to pursue an MBA abroad, but financial constraints prevent them from doing so. Keeping this in mind, international business schools provide a variety of financial aid opportunities to outstanding applicants in order to welcome them aboard. A student loan is one of the ways to pay for an MBA abroad. Banks prefer job-oriented courses when making loans, so an MBA degree is easily qualified for education loans.
Do you want to learn more about education loans for MBA programs abroad? You’ve arrived at the right place. Here is a detailed blog on MBA loan abroad, including information on leading banks and NBFCs, eligibility, how to apply, collateral, and so on.
How Can You Fund Your MBA Abroad?
This is one of the most frequently asked questions among students considering an MBA abroad. Because MBA programs are among the most expensive in the world, MBA students are concerned about their finances and seek ways to reduce their financial burden. While scholarships are the best option because there is no repayment required, they are not available to all students. As a result, applying for a student loan for MBA abroad is the next best option for financing your MBA abroad.
Several banks and non-banking financial companies (NBFCs) in India provide education loans to students pursuing an MBA in India or abroad under certain conditions. Avanse, Credila, Tata Capital, InCred, Global Student Loan Corporation, and other well-known non-banking financial companies (NBFCs) offer student loans for MBA programs abroad.
There are two types of loans available: collateral loans and non-collateral loans. Let us go over this in detail:
Collateral for MBA Education Loan Abroad
A non-collateral loan is one in which you do not have to provide any security in order to obtain a loan. In case you didn’t know, collateral for education loans is any security that you offer to a bank against a loan in order to reduce the risk of non-payment. If you’re wondering what you can use as collateral for an education loan, you can provide FDs, bank deposits, bonds, property other than agricultural land, gold, life insurance policies, shares, and so on. You should be aware of the following points:
1. You can get a loan of up to 4,00,000 INR without putting up any collateral.
2. There is no need for collateral for loans up to 7,50,000 INR; instead, your parents will be made joint borrowers with a third party guarantor.
3. Education loans worth more than 7,50,000 INR require collateral.
4. In India, students can obtain loans of up to 1.5 million INR.
5. Interest rates on collateral loans from public loans range from 7.6-9 percent for public loans to 10.5 percent for private banks.
Eligibility Criteria for a Study Abroad Education Loan
Are you wondering if you can get an education loan for an MBA abroad? Consider the following eligibility criteria for applying for education loans:
1. You must be an Indian citizen.
2. At the time of application, you must be at least 18 years old.
3. You must have graduated with at least a 60% average.
4. You must have an admission offer from a foreign institution at the time of application.
Documents Required for a Study Abroad Education Loan
To apply for a loan for an MBA abroad, you will need to provide the banks with the following documents:
1. Loan application completed
2. Academic records up to and including the most recent education
3. Admission letter
4. Aadhar card PAN card
5. Passport-size photographs for voter identification
6. Evidence of residency
7. Bank statement from the previous six months
8. IT statement of return
Application Procedure for an MBA Education Loan Abroad
Applying for an education loan for an MBA abroad has become much easier, especially now that the application process is online. This means you can apply for a student loan from the comfort of your own home, providing all necessary information and documents as requested. The following is a step-by-step guide to applying for an MBA abroad loan:
1. The first step is to look for banks or non-bank financial companies that offer loans for the program you want to apply for.
2. Before applying for your chosen program, you must also determine the amount of loan required.
3. Before submitting your application, compare available options in terms of maximum loan amount, interest rate, collateral, and so on.
4. Once you’ve decided, fill out the loan application form, either online or in person, and wait for a response.
5. Make sure you apply for a loan well in advance, as application processing times vary from bank to bank and may cause the process to be delayed.
6. You will be required to submit the necessary documents and complete the loan document formalities.
7. Once approved, the bank will automatically transfer the requested amount to the university in your name.
- This is provided by HDFC bank and was the first platform to provide student education loans.
- You can apply for need-based loans starting at 1,000,000 INR.
- Credila can provide loan approval prior to receiving an admission offer.
- The loan has a variable interest rate.
- It is repayable in ten years.
- There is no loan spread.
- Avanse is one of the top NBFCs for education loans.
- Loans in excess of 1,000,000 INR are granted on the basis of need.
- The loan can cover the entire cost of the course.
- The repayment term is ten years.
- The interest rate is calculated using the base rate plus the credit profile.
- InCred offers unsecured loans of up to 40,00,000 INR and secured loans of up to 1.0 million INR.
- The repayment period is between 10 and 15 years.
- Interest rates begin at 12% and vary depending on a variety of factors such as collateral, credit profile, course, and others.
- There is no loan margin.
1. Which bank is best for education loans for MBA programs abroad?
Among the best banks for MBA education loans abroad are HDFC Bank, State Bank of India, Axis Bank, Punjab National Bank, Bank of Baroda, and Canara Bank.
2.Who is eligible for an MBA education loan?
In order to be eligible for an MBA education loan, you must be at least 18 years old at the time of application, have completed a bachelor’s degree with good grades, and have received an admission offer.
3.Can I get a loan of 20,000 INR without putting up any collateral?
Without collateral, you can only get a loan of up to 4,00,000 INR.
4.Is it possible to obtain a student loan that does not charge interest?
No, there are no interest-free student loans available. Instead of taking out student loans, you can apply for scholarships.
5. Can I get two education loans?
Yes, as surprising as it may sound, you can get two education loans from the same or different banks as long as they meet the criteria for a second loan.
This was all about a loan for an MBA program abroad. A MBA abroad loan is a more viable option because it includes living expenses, which are not covered by scholarships. Because it is difficult to find fully funded scholarships, students believe it is a myth. Although fully funded
scholarships are a reality, they are also extremely competitive and limited, which highlights the importance of obtaining a loan for an MBA abroad. Apply for loans at banks you believe are viable, and you will almost certainly receive one that will cover the entire cost of your MBA abroad.
At ForeignAdmits, we understand how important this decision is. We’ll be there for you every step of the way. Finding the right school for admission and scholarship consideration is critical.
ForeignAdmits has a team of experienced counselors. We can provide you with customized advice based on your specific needs. Get in touch with us right away for a great start. We are excited to help you achieve your educational and professional goals!