How to get an Education Loan for MBA
MBA (Masters of Business Administration) is considered one of India’s most expensive and popular courses. Every year in India, a vast number of students appear for the entrance exam of this course. Though the number of students appearing for this course is enormous, only a few students can secure their admissions to top universities.
Top MBA colleges such as the IIM (Indian Institute of Management) charge a premium for their high-quality MBA Courses from their students. The fees in these colleges can range from 5-23 lakhs. The fee for an MBA program from a reputed college/university can be expected around 10 lakhs with an additional cost of books, lodging, etc.
Therefore it becomes essential to take up a loan from a recognised financial institution to ease your burden.
Why Take an MBA Education Loan?
An MBA Education Loan is a financial tool that students can use to continue their education. These loans are offered to students who have secured admission to recognized colleges. Here are a few points on why should one opt for an education loan for MBA:-
- Provides almost 100% coverage:– MBA loans generally cover nearly all the expenses incurred by you on your education.
- Prevents missed opportunities:- Sometimes, many students may not be able to afford the fees of an MBA education loan. So, it is a significant investment that can help you to boost your career and open up new avenues for growth.
- Eases your pocket:- MBA Education loans give considerable comfort/ help to your finances. And with this, you can quickly complete your education which you would not have been able to do in lack of finances.
Top colleges for MBA and PGDM
- Indian Institute of Management, Ahemdabad
- Indian Institute of Management, Bangalore
- Indian Institute of Management, Calcutta
- Indian Institute of Management, Lucknow
- Indian Institute of Management, Kozhikode
- Indian Institute of Management, Indore
- Department of Management Studies, Indian Institute of Technology, Delhi
- Department of Management Studies, Indian Institute of Technology, Madras
- Indian Institute of Technology, Roorkee
- Faculty of Management Studies, Delhi
- XLRI – Xavier School of Management, Jamshedpur
List of top colleges for MBA / PGDM in the USA
- Harvard University
- Stanford University
- University of Pennsylvania
- University of Chicago
- Massachusetts Institute of Technology
- Columbia University
- Northwestern University
- Princeton University
- University of California
- New York University
- Yale University
- Duke University
- University of Michigan
MBA course fees for IIMs and Top MBA colleges in India
| College | Fees in Rupees |
| Indian Institute of Management IIM, Ahemdabad | 23 lakhs |
| Amity University, Manesar | 3.16 – 12.76 lakhs |
| Indian Institute of Management, Calcutta | 21 – 27 lakhs |
| Narsee Monjee Institute of Management Studies, Mumbai | 20 lakhs |
| Acharya Bangalore B School, Bangalore | 8.10 – 11.02 lakhs |
| Management Development Institute, Bangalore | 8.77 – 23.96 lakhs |
| SP Jain Institute of Management Studies and Research, Mumbai | 17.87 lakhs |
| Universal Business School, Mumbai | 22 lakhs |
| Indian Institute of Management, Bangalore | 21 lakhs |
| Lovely Professional University, Phagwara | 5.8 – 8 lakhs |
MBA course fees of Top 10 MBA colleges in the USA
| College | Ranking | Fees in Dollars[For 1st-year total course fees] | Fees in Rupees[For 1st-year total course fees] |
| Harvard University
MBA |
1 | 111614.27 dollars | Rs 82.2 Lakhs |
| Stanford University
Master of Business Administration |
2 | 99257.94 dollars | Rs 73.1 Lakhs |
| The University of Chicago
Full-Time MBA |
3 | 87308.97 dollars | Rs 64.3 Lakhs |
| University of Pennsylvania
Master of Business Administration |
4 | 102245.18 dollars | Rs 75.3 Lakhs |
| Massachusetts Institute of Technology
MBA |
5 | 106454.48 dollars | Rs 78.4 Lakhs |
| Northwestern University
One Year MBA |
6 | 135783.78 dollars | Rs 1.0 Crore |
| Columbia University
MBA |
7 | 112157.40 dollars | Rs 82.6 Lakhs |
| Princeton University
Master in Finance |
8 | 76446.27 dollars | Rs 56.3 Lakhs |
| University of California – Berkeley Campus
Full-Time MBA |
9 | 97085.40 dollars | Rs 71.5 Lakhs |
| University of Michigan
Full-Time MBA |
10 | 92332.97 dollars | Rs 68.0 Lakhs |
| New York University
MBA |
11 | 111206.91 dollars | Rs 81.9 Lakhs |
| Duke University
Global Executive MBA |
12 | 100480.00 dollars | Rs 74.0 Lakhs |
| University of California – Los Angeles Campus
Full-Time MBA |
13 | 92468.75 dollars | Rs 68.1 Lakhs |
| Yale University
MBA |
14 | 101430.48 dollars | Rs 74.7 Lakhs |
| Dartmouth College
MBA |
15 | 114329.94 dollars | Rs 84.2 Lakhs |
| Carnegie Mellon University
Master of Business Administration |
16 | 96270.70 dollars | Rs 70.9 Lakhs |
| Cornell University
Two-Year MBA |
17 | 94369.73 dollars | Rs 69.5 Lakhs |
| The University of North Carolina at Chapel Hill
MBA |
18 | 97356.97 dollars | Rs 71.7 Lakhs |
| The University of Texas
Full-Time MBA |
19 | 75224.21 dollars | Rs 55.4 Lakhs |
Banks Offering Education Loans for Pursuing MBA Courses
| Bank | Max. Loan Amount ( in Rs.lakhs ) | Rate of Interest (in p.a. %) | Repayment Tenure |
| State Bank of India SBI | 40 | 7.15-9.55 | 7-12 years |
| Punjab National Bank | 15 | 7.20-9.80 | 10-15 years |
| Canara Bank | 20 | 9.95-10.70 | 10-15 years |
| Allahabad Bank | 20 | 8-10 | 7 years |
| Private Bank | 50 | 11.50 and above | 10 years |
| Avanse | No limit | 11.50 | 10 years |
| HDFC Bank | 20 | 9.55 – 13.25 | 15 years |
| Central Bank of India | 20 | 8.90-10.40 | 15 years |
| IDBI Bank | 20 | 9.70 | 10-15 years |
| Axis Bank | 75 | 13.70-15.20 | 20 years |
Eligibility criteria for an MBA Education Loan
The eligibility criteria for MBA loan are as follows
- The candidate must be a citizen of India.
- Should have secured admission to a recognized college.
These are some of the basic requirements to apply for an education loan, whereas there are other criteria also that influence the decision of bank such as:-
- Academic merit of the student.
- The reputation of an MBA college in which the child has secured admission.
- Collateral offered
- Age of the student:- Some banks may have restrictions on the age i.e. a max. of 35 years of age.
How to take an MBA Education Loan
Nowadays students can apply and compare for loans online. Most of the banks allow students to apply for education loans online. Here are a few steps that a student must follow while applying for an education loan.
- Compare different loan Schemes online.
- Fill the form online or visit the bank.
- Students may usually receive a phone call from a bank representative. Where students can enquire about the bank scheme and tell about their requirements etc.
- An executive will visit from the bank at the student’s home and assist in filling the application form. The application form with the required documents will be collected by the bank executive and will be submitted to the bank for further process.
- Now the application form will be reviewed by the bank.
- Once the necessary procedure is completed, the student’s loan application will be approved.
- The education loan is generally deposited in the institute’s account, However, in some cases, it may be deposited in the student’s bank account also.
- The student has to provide required bills and receipts for any cost incurred during the study to justify the usage of the loan amount.
FAQs on MBA education loan
✅ Is an education loan available for MBA?
Banks may finance up to 100% of the loan depending on the loan amount of MBA and the category of the institute.
✅ Can I get a 50000 education loan?
Yes, you can get a minimum loan amount of Rs. 50,000 along with various other benefits offered by the bank.
✅ Should I take a loan for MBA?
Considering the rising MBA fees in top b-schools, it is clear that one should surely opt for an education loan to ease their pockets.
