Education costs are skyrocketing, especially for graduation and post-graduation. Glance into any admission prospectus of professional courses and you will see the fees running into lakhs of rupees. And if you’re eying for a foreign degree, then the cost will increase drastically. One of the most popular post-graduation degrees is Masters in Business Administration (MBA). The admission process for MBAs has witnessed a steep rise in the previous decade and continues to grow. But, most of the students are hesitant because of the fees, an MBA from a good institute can cost you anywhere between 10-20 lakhs, for second-rung universities it may cost up to 5 lakhs. But, all of the aspiring students don’t be disappointed, to meet your MBA fee requirements you can always apply for an educational loan.
Who can get an educational loan?
Education loan eligibility –
• The individual should be a citizen of India and should have a confirmed admission in an MBA institute.
• Most of the lenders provide education loan to individuals in the age group of 16-35 years.
Which MBA institutes are eligible for the loan?
The institute should meet the requirements of the lenders or the banks. Generally, the lenders look how reputed the institutes and the courses are. Also, they check out if the institutes promise good job prospects in the future.
How much amount do you get?
It depends if you’re doing your MBA in India or abroad. For India, lenders offer up to Rs. 15 lakhs and from abroad, they offer up to Rs. 20 lakhs. Lenders mostly ask for 5-15% of the loan amount as margin money. But, there are some NBFCs and nationalized banks that offer 100% of the loan amount without asking for margin money, they may ask for collateral if the loan amount is high.
If so, what are the collaterals required?
Generally, loans more than 7.5 lakhs require collaterals. It may not be your residential property but also can be insurance policies, fixed deposits, Kisan Vikas Patra or National Savings Certificate. Lenders may also ask for co-applicants, they must be Indian passport holders and should’ve residential and identity proofs.
Education loan rate of interests are generally floating, but there are certain Banks that have a fixed educational loan interest rate. They generally vary from 12.5 to 14.5% depending on the university and the course.