How to Get Student Loan for MBA Abroad

How to Get Student Loan for MBA Abroad

Going to study abroad for MBA can be exciting, brimming with opportunities for personal growth and career advancement. However, the financial aspect can often seem daunting. Fortunately, with the right approach and understanding of education loans and scholarships, financing your MBA dreams becomes more achievable than ever for you.

Table of Contents

What are the Benefits of Taking an Education Loan for an MBA?

Taking an education loan for an MBA has several benefits:

  • Extends Your Budget: With a loan, you can afford an MBA program that might otherwise be too expensive.
  • Prevents Missed Opportunities: Without a loan, many students would miss out on the chance to do an MBA, which can really boost your career.
  • Provides almost 100% coverage: Most education loans cover all your MBA expenses like tuition, books, living costs, and travel.
  • Lower Interest Rates: The interest rate on an education loan for an MBA is usually lower than on other types of loans.
  • Easy Repayment Options: You often get 6 months to a year grace period after your course to over to start repaying the loan. Also, many banks have flexible repayment plans, where you can take upto 15 years to repay the loan. 
  • Tax Benefits: You can deduct the interest you pay on your education loan from your taxes for 8 years. This will reduce your total tax liability, helping you save money.

What are the Eligibility Criteria for an Education Loan for MBA?

The eligibility criteria for an education loan for an MBA are as follows:

  • Citizenship: The applicant must be an Indian resident.
  • Admission: The applicant must have secured a seat in an MBA course.
  • Academic Performance: The applicant must have secured at least a 60% GPA in graduation and shouldn’t have taken any breaks. 
  • Co- Signer’s Credit Score: The co-signer should have a credit score of over 700.
  • Age limit: There is no age limit. However, some banks may have it, so do check with them. 
  • Collateral: Some banks might offer loans without any collateral to a certain extent. Collateral for this can be an immovable property, fixed deposits, mutual funds, life insurance policies, etc. 

Note: These are general criteria, and specific banks or financial institutions may have additional requirements. Always check with the specific lender for their criteria before applying for the loan.

Documents Required for Loan Application

Here are the documents you will need to apply for the loan:

  • Completed loan application 
  • Academic history through the most recent degree (Copies of your academic transcripts, certificates, and mark sheets)
  • Letter of acceptance 
  • Fees structure detailing the cost of the MBA program
  • Aadhar card and PAN card
  • Voter ID 
  • Passport
  • Evidence of residency (Passport or Aadhar card)
  • Last six months’ worth of bank statements
  • Return statement for IT
  • Collateral documents

What are the Expenses Covered by a Higher Education Loan? 

The following are all the things that a higher education loan typically covers; however, these can vary depending on the bank, course, and educational institution:

  • Tuition: This is the primary expense covered by an education loan. It covers the total cost of the tuition fees of the course.
  • Examination/Library/Laboratory fees: These are the additional charges that educational institutions levy for the use of their facilities and services. Education loans typically cover these costs.
  • Purchase of Books/Equipment: It covers the cost of the necessary academic materials.
  • Living Expenses: Some financial institutions cover only a portion of living expenses, while others may cover all of it. It can include accommodation (hostel or rented), utility bills, food expenses, and local transportation.
  • Travel Expenses: The cost of travelling to the country of study might be covered by the loan. 
  • Purchase of Computers/Laptops: Given the increasing reliance on technology in education, the cost of purchasing a computer or laptop for academic use is often covered under education loans only if it is necessary for your course.
  • Cost of Health Insurance: Having health insurance is a must for students travelling to study abroad. So, it is typically covered by the education loan.

How to Apply for a Student Loan to Study Abroad?

If you are looking around to get a student loan for MBA abroad, here’s what you need to do:

How to Apply for a Student Loan to Study Abroad?
  • Research: Look into different banks or financial institutions that offer student loans for studying abroad.
  • Check eligibility: Make sure you meet the criteria set by the bank for getting the loan. The general eligibility criteria are mentioned above.  
  • Gather all the necessary documents: Collect all the above mentioned documents, i.e.,  your academic records, admission proof, collateral papers, and financial statements.
  • Apply: You can apply for the loan online through the bank’s website or go in person. Some banks also have special portals for education loans.
  • Wait for loan approval: After you apply, the bank will review your application. If everything checks out, they will give you the green light and either deposit the money into your account or send it directly to your university.

Just keep in mind that each bank might have its own way of doing things, so it is smart to double check with them about their process.

After securing the loan, you can leverage HiWiPay, your support system, to transfer the money abroad. All you have to do is fill out the A2 form, submit it, and complete the KYC once. Then, you can transfer money at a competitive transfer rate within 24 hours! Visit HiWiPay website or download the app today.

Read More : Checklist for Students Going to Study Abroad

Financial Institutions Offering Education Loans for MBA

Nationalised Banks Offering Education Loans for MBA 

Financial InstitutionMinimum Loan AmountMaximum Loan AmountInterest Rate (Floating)Processing FeesMoratorium PeriodRepayment Duration
State Bank of India (SBI)INR 7.50 LakhsINR 1.5 Cr8.15% p.a. onwardsINR 10,000 per application1 year after the course is complete or six months after getting a job, whichever is earlier15 years
Union Bank of India (UBI)INR 7.50 LakhsINR 150 lakhAs per the criteria of the bankNo processing charges.INR 5000 charged, which is refunded if the student avails the loan in 3 months.Course duration + 1 year15 years
Bank of India (BOI)INR 7.50 LakhsINR 150 lakhAs per the criteria of the bankNo processing chargesCourse duration + 1 yearNot specified
Bank of Maharashtra (BOM)INR 7.50 LakhsNot specified9.45% p.a. onwardsNot specifiedCourse duration + 1 year15 years
Bank of Baroda (BOB)Not specifiedINR 150 lakh8.15% p.a. onwardsNo processing charges up to INR 7.50 lakh1% of loan amount up to INR 10,000Course duration + 1 year15 years

Private Banks Offering Education Loans for MBA

Financial InstitutionMinimum Loan AmountMaximum Loan AmountInterest Rate (Floating)Processing FeesMoratorium PeriodRepayment Duration
Axis BankNot specifiedINR 75 lakhs13.70% p.a. onwards2% of the loan amountNot specified15 years
HDFC BankNot specifiedINR 1.5 croreAs per the criteria of the bank1.5% of the total loan amountCourse duration + 1 year14 years
ICICI BankINR 7.50 LakhsINR 1.5 crore9.85% p.a. onwardsNo processing charges up to INR 7.50 lakh1% of loan amount up to INR 10,000Course duration + 1 yearNot specified

Co-Operative Banks Offering Education Loans for MBA

Financial InstitutionMinimum Loan AmountMaximum Loan AmountInterest Rate (Floating)Processing FeesMoratorium PeriodRepayment Duration
Saraswat BankNot specifiedINR 75 lakhs9.50% p.a. onwards0.5 % of the loan amountCourse duration + 1 year15 years

NBFCs Offering Education Loans for MBA

Financial InstitutionMinimum Loan AmountMaximum Loan AmountInterest Rate (Floating)Processing FeesMoratorium PeriodRepayment Duration
AvanseNot specifiedINR 1 crore11.25% p.a. onwardsNo processing charges up to INR 7.50 lakh1% of loan amount up to INR 10,000Course duration + 1 year15 years
HDFC CredilaINR 1 LakhNo upper limitAs per the criteria of the bankNot specifiedCourse duration + 1 yearNot specified
InCredINR 7.50 LakhsNot specified12% p.a. onwardsNo processing charges up to INR 7.50 lakh1% of loan amount up to INR 10,000Course duration + 1 year10 years

International Lenders Offering Education Loans for MBA

Financial InstitutionMinimum Loan AmountMaximum Loan AmountInterest Rate (Floating)Processing FeesMoratorium PeriodRepayment Duration
Prodigy FinanceUSD 2001No maximum cap10% p.a. onwardsNot specifiedNot specifiedNot specified
MPower FinanceUSD 2001USD 100,00012.99% p.a. onwardsNot specifiedNot specifiedNot specified

If you are wondering about how to calculate the EMI to get a clearer picture, then visit HiWiPay EMI Calculator. You must fill in the loan amount, interest rate, loan period, course duration, moratorium period, and payment during the moratorium to know how much money you will have to pay per month during the repayment period.

Cost of MBA Abroad

Studying for an MBA in different countries comes with different price tags. For example, Germany has lower costs compared to places like the US, UK, and Canada where it is usually more expensive. It is a good idea to look into the costs for each country to get a clearer picture.

CountryAverage Annual Fees (INR)
USA60 Lakhs –  80 Lakhs
Canada15 Lakhs –  60 Lakhs
Germany40 Lakhs
UK20 Lakhs –  65 Lakhs
Australia12 Lakhs –  30 Lakhs
Ireland10 Lakhs –  29 Lakhs
New Zealand15 Lakhs –  25 Lakhs
Singapore45 Lakhs –  65 Lakhs

Read More : Education Loan for Medical Studies in India

Frequently Asked Questions

How to get education loan for MBA?

Follow these steps to get an education loan for MBA:

1. Research: Look for financial institutions that offer student loans for studying abroad.
2. Check eligibility: Look up the eligibility criteria set by the bank for getting the loan to check if you qualify. 
3. Gather all the necessary documents: Collect copies of your academic records, admission proof, collateral papers, and financial statements.
4. Apply: Go to the bank’s website or go in person to apply. Some banks also have special portals for education loans.
5. Wait for loan approval: After you apply, wait for the bank to approve your application. If it is approved, they will either deposit the money into your account or send it directly to your university.

Which bank is best for an education loan for MBA?

There are several banks and financial institutions that offer education loans for an MBA. The choice of the best bank can depend on various factors such as the loan amount, interest rate, repayment terms, processing fees, and customer service.

What is the eligibility for an education loan?

The general eligibility criteria for an education loan are:

1. The applicant must be an Indian.
2. The applicant must have secured a seat in the course.
3. The applicant must have secured at least a 60% GPA in graduation. 
4. The co-signer should have a credit score of over 700.
5. Some banks might offer loans without any collateral to a certain extent. 

What are the documents required for an education loan for MBA?

You will need the following documents for an education loan for MBA:

1. Completed loan application 
2. Academic history through the most recent degree (Copies of your academic 3. transcripts, certificates, and mark sheets)
4. Letter of acceptance 
5. Fees structure detailing the cost of the MBA program
6. Aadhar card and PAN card
7. Voter ID 
8. Passport
9. Evidence of residency (Passport or Aadhar card)
10. Last six months’ worth of bank statements
11.Return statement for IT
12.Collateral documents

Can I get an education loan for MBA without collateral?

Yes, you can get an education loan without any collateral, but only to a certain extent. For instance, SBI offers INR 7.50 lakhs unsecured loans, but the secured loan amount can go up to INR 1.5 Cr.

Can I get education loan for MBA while I’m still working ?

Yes, you can get an education loan for an MBA while you are still working, but you will need to meet the eligibility criteria of the financial institution.

References:

Works Cited

“Apply Online in India for Studies Abroad (above Rs. 20 Lakhs) | SBI – Personal Banking.” Sbi.co.in, 2019, www.sbi.co.in/web/personal-banking/loans/education-loans/global-ed-vantage-scheme. Accessed 29 Apr. 2024.

Bank. “Mahabank Education Loan Scheme.” Bank of Maharashtra, 2024, bankofmaharashtra.in/educational-loans. Accessed 29 Apr. 2024.

“Benefits of Opting for an Education Loan for MBA Courses.” Avanse Financial Services, www.avanse.com/blog/benefits-opting-education-loan-mba-courses. Accessed 29 Apr. 2024.

Chamoli, Abhinav. “MBA Education Loan: Eligibility, Top Loan Schemes, Steps to Apply, Tips | CollegeDekho.” CollegeDekho.com, 19 Apr. 2023, www.collegedekho.com/articles/mba-education-loan/. Accessed 29 Apr. 2024.

“Education Loan – Apply for Student Loan Online in India – Axis Bank.” Www.axisbank.com, www.axisbank.com/retail/loans/education-loan. Accessed 29 Apr. 2024.

“Education Loan – Apply for Student Loan Online in India – Axis Bank.” Www.axisbank.com, www.axisbank.com/retail/loans/education-loan. Accessed 29 Apr. 2024.

“Education Loan for Higher Studies Abroad – Saraswat Co-Operative Bank.” Www.saraswatbank.com, www.saraswatbank.com/product-details.aspx?id=Saraswati-Education-Loan. Accessed 29 Apr. 2024.

“Education Loan Product Details for Abroad | HDFC Credila.” Www.hdfccredila.com, www.hdfccredila.com/abroad/education-loan-product-details.html. Accessed 29 Apr. 2024.

“Education Loan: Apply for Student Loan Online | ICICI Bank.” Www.icicibank.com, www.icicibank.com/personal-banking/loans/education-loan. Accessed 29 Apr. 2024.

“Get Education Loan for Studying Mba in Abroad.” Www.bankofbaroda.in, www.bankofbaroda.in/banking-mantra/loans-borrowings/articles/get-education-loan-for-studying-mba-in-abroad. Accessed 29 Apr. 2024.

“Get Education Loan for Studying Mba in Abroad.” Www.bankofbaroda.in, www.bankofbaroda.in/banking-mantra/loans-borrowings/articles/get-education-loan-for-studying-mba-in-abroad. Accessed 29 Apr. 2024.

Kumari, Shikha. “Education Loan for MBA Abroad in 2023: Eligibility, Requirements.” Shiksha.com, Shiksha Study Abroad, 13 Dec. 2022, www.shiksha.com/studyabroad/education-loan-for-mba-abroad-eligibility-requirements-articlepage-110209#:~:text=By%20providing%20your%20contact%20information%2C%20such%20as%20your. Accessed 29 Apr. 2024.

MPOWER. “Student Loans Abroad.” MPOWER Financing, www.mpowerfinancing.com/en-in/get-a-loan. Accessed 29 Apr. 2024.

“Special Union Education Loan Scheme for Abroad Studies.” Www.unionbankofindia.co.in, www.unionbankofindia.co.in/english/special-education-loan-abroadstudies.aspx. Accessed 29 Apr. 2024.

“Star Education Loan | Study in Abroad | Interest Rate.” BOI, bankofindia.co.in/education-loan/star-education-loan-studies-abroad. Accessed 29 Apr. 2024.

“Study Abroad Loan FAQ | Avanse Financial Services.” Www.avanse.com, www.avanse.com/education-loan/study-loan-abroad-faq. Accessed 29 Apr. 2024.

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