For pursuing MBA you have two options at your disposal- either perform brilliantly and avail a scholarship/grant or avail an education loan. Postgraduate studies such as MBA can offer you those zeniths in life, which you are trying to attain, but it can cost you a lot. In this article, we will deal with the topic of education loans in India for MBA programs extensively.
MBA Loans Common Criteria of Indian Nationalized Banks
The very primary criterion for all postgraduate courses eligible for a home loan in India is that it must be recognized by UGC, AICTE, AIBMS, ICMR or the Government. Additionally, there may be cut off marks for last qualifying exam for the student as well (A good academic record improves chances of the loan and the amount). Loans from Indian Banks, for institutes that are laying abroad, for MS, Technical graduation programs, MCA, MBA programs loans will be provided but the programs must be approved or accredited.
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-A student must be a citizen of India.
-The candidate must have taken admission to approved courses.
-A student who qualifies for merit quota will receive a bank loan even if he/she has applied for the Management quota.
-Students qualifying for top ranking Institutes in India will get the added advantage of 1.00% as a concession for qualifying for IIM, IIT, AIIMS, AFMC, IIFT, ISB, NIT, XLRI, SPJIMR, IISC, SPJIM, MDI and so on.
Expenses That Loaning Amount Covers
-Admission fees/ annual fees for the Colleges and Institutions.
-Examination fee, Library fee and Laboratory fee.
-Charges for acquiring equipment, books and instruments.
-Purchase of laptops or personal computers (if required).
-Caution deposit, refundable deposit, building fund after procuring original receipts.
-Any other expenses those are required for completing the program like educational tours, projects and thesis.
Whereas these features will be covered by the loan, the aspects that will not be covered by the loan is GMAT fee, Business School application fees, Visa fee, airline tickets, commuting tickets, living expenses and so on.
Repayment tenure for most of the banks mentioned below is 10 years for the amount till Rs. 7.5Lacs and or amounts above Rs. 7.5Lacs the tenure is 15 years. For banks, whose tenure different, the time has been mentioned in the next section. The repayment is (for all) done by Equated monthly Installments starting one year after completion of course or 6 months after procurement of the job.
Specific Criteria Of Different Indian Nationalized Banks for MBA Loans
What are the aspects that you must tally while you desire for a bank loan for MBA? Well, the rate of Interest is of course the primary coordinate but you must also look into the terms for repayment, collateral requirement, prepayment penalty and so on. Here are the 10 banks who can offer you an educational loan.
Loan amount: The maximum loan amount for courses in Indian Institutes is Rs. 10 Lacs and for abroad institutes it is 30 Lacs.
Rate of Interest: The ROI for loans up to Rs. 4 Lacs is 13.50%, for amounts in between Rs 4 Lacs and Rs. 7.5 Lacs the ROI is 13.75% and above Rs. 7.5 Lacs the interest is 11.75%
Repayment period: Repayment period for up to Rs. 7.5 Lacs is 10 years while for those above Rs. 7.5 Lacs, it is 12 years
Amount of loan: For studies in the India, the maximum amount that is sanctioned is 10Lacs and for studies in Abroad it is Rs. 20 Lacs
Rate of Interest: The base rate (BR) is 10.25% and Term Premium (TP) of 0.50%. For amounts less than Rs. 4Lacs, the equation for ROI is BR+2.5%+ TP. For loaning amount of Rs. 4Lacs to Rs.7.5 Lacs the ROI is BR+3.50%+TP. For loaning amount above Rs. 7.5 Lacs, the ROI is BR+3.0%+TP.
Amount of loan: Andhra Bank offers amounts as much as Rs. 20Lacs for premium institutes like IITs and IIMs
Rate of Interest: For amounts within Rs 7.5Lacs, the ROI is Base Rate+ 2.75%, for those above Rs. 7.5Lacs; it is Base Rate+ 1.5%
Repayment Tenure: for loans up to Rs. 50,000/- the tenure is 2 years; for those in between Rs. 50,000 to Rs. 1 Lac, the tenure is 2 to 5 years, for those above Rs.1 Lac, the tenure is 3 to 7 years.
Amount of loan: For studies in India it is 10 Lacs and for studying abroad it is 20 Lacs.
Rate of Interest: The rate of interest differs according to the program as the loans of Rs. 10 Lacs (Study in India) and Rs. 20 Lacs (Study in Abroad) qualifying for the Priority Sector Lending the interest rate is 11.25% with Base rate + 1.00%.
Amount of loan: Maximum loan amount of Rs. 10 Lacs is given by the bank.
Rate of Interest: For loans up to Rs. 7.5 Lacs, the ROI is Base rate+ 2.5%; for amounts above Rs. 7.5 Lacs, the ROI is base rate+1.75%
Repayment Tenure: The loan is repayable in maximum 120 installments up to Rs. 7.5 Lacs and 180 installments for amounts above 7.5 Lacs
Loan amount: The maximum amount that can be received for studies in India (IIMs) or Abroad is Rs. 20 Lacs.
Rate of Interest: The ROI varies with the amount and the Institute like for the IIMs it is BR+1.50% for male students and the females get the rebate of 0.50%. You can check the official website for further details.
Loan Amount: Maximum loan amount for studies in India is Rs. 10 Lacs and for those abroad is Rs. 20 lac.
Rate of Interest: For male students it is Base Rate+2.00% and for Female, SC, ST, IIM/IIT students it is BaseRate+1.50%.
Loan Amount: The maximum amount that can be given for studies in India is Rs. 10 Lacs, and for studies abroad it is 15 Lacs.
Rate of Interest: For amounts below Rs. 7.5 Lacs, the ROI is 12.5% for male students and 12.00% for female students. For amounts above Rs. 7.5 Lacs, the ROI is 12.25% for male students and 11.75% for female students.
Loan Amount: For studies in India maximum Rs. 10Lacs can be given and studies abroad the amount is Rs. 20Lacs.
Rate of Interest: The floating rate of Interest is related to the Base Rate and revised from time to time; visit the official website for precise details. Currently the Base Rate is 10.25% However, Corporation Bank also offers a concession in the interest rates for SC/ST/Women candidates.
Amount of Loan: The loan given for studies in India is maximum Rs. 10 Lacs, and for studies abroad, the amount is Rs. 20 Lacs.
Rate of Interest: For amount less than Rs. 4 Lacs, the ROI is 12.75%; for amounts in between Rs. 4 Lacs and Rs. 7.5 Lacs is 13.25% and above RS.7.5% it is 12.75%.
Some of the Non-Banks Educational Loan
Various organizations, who are non-banking institutes offer finance for outstanding and meritorious students. Some of the options in India are-
Credila is a sister organization for HDFC, the ROI currently is 9.33% and repayment tenure is 10 years for studies in India and abroad. The students get the loan amount in the Indian Rupees which can be converted into foreign currencies, but the amount is payable only in the Indian Rupees.
GSLC is meant for international students who want to study abroad. The student does not need a cosigner who is a US citizen. This institute grants the loan amount according to the institutes and the borrower‡s home country.
ISLP is meant for international students, like Indian students who want to study in approved US institutes. Students can take a loan amount as per the total cost of course and the maximum repayment tenure is 25 years. The loan covers all the expenses including books, tuition fees, health insurance, transportation and many more things.