Pursuing MBA has always been one of the most sought-after aspirations in our country. It not only helps fresh graduates to find the right and lucrative opportunity, but also extends a great learning opportunity for working professionals. That’s the very reason pursuing MBA from a recognized institute is a cost-intensive affair.
When do loans come handy?
While most of our dreams run high, our bank balances and savings don’t. That does not mean that we give up on our dreams. Be it of travelling the world or pursuing an MBA from a reputed university. Some have the option of asking their parents for a loan, while some don’t. That does not mean you give up on.
Educational loans that come under the purview of personal loan are specially designed so that you can fulfil your dream of getting a higher degree. This would mean that you can get a student loan for MBAcourse to study.
Based on your choice of university, financial institutions like Tata Capital help with educational loans so that you can get a degree that will help you in your future. Interest rates on educational loans are also low, which have interest rates, between 10% to 14%.
Also, repayment of these loans is to be done only after completion of your course. This would mean that you do not have to worry about your EMIs and interest and can concentrate on studying.
Additional Read: Secured Vs Unsecured Education Loans: A Detailed Guide
If you think that applying for an educational loan for MBA is difficult, you should know that there are minimal documentation and easy personal loan eligibility.
Some of the MBA colleges also collaborate with banks and other financial institutions to help MBA aspirants overcome their financial crunch. These institutions provide education loan for MBA aspirants to embark on their journey to a dream career in Management and Consulting.
Things to be considered while applying for an education loan
It is important to carefully understand the terms and conditions of the student loans to save oneself from any financial mishaps. The students applying for education loan for MBA courses must consider the different loans available in the market, and choose the loans with lowest interest rates and other bundled benefits. They need to examine the exact cost of the education loan, in terms of interest rate and amount to be paid to the bank along with the duration of the repayment period.
Assess your loan requirements: This includes the tuition fee, security deposit, caution money, lodging and mess fee, study material expenses and other necessary expenditure.
Loan amount on MBA programme: Banks have a list of institutes and colleges where they provide education loan for MBA aspirants along with the loan amounts and interest rates mentioned. The students can consider these colleges to avail higher loans at lower interest rates, without any collateral security and with lower or no margin money.
Understand loan policies: Most banks and financial institutions provide education loan for MBA with their set of loan policies. Educational loans have loan charges, collaterals and guarantees required, type of interest rate- simple or compound interests, fixed or floating interests Prepayment charges etc. All this depends upon the amount you are taking a loan for.
Additional Read: Reasons Education loan is preferable than Personal loan
Prepare the required documents: Once decided to apply for an education loan, the next step involves collecting the supporting documents for the loan application. The major documents required by the bank are:
- Admission Offer Letter by the MBA institute
- Mark sheet of last qualifying examination
- Estimate of the expenses along with the schedule of fee payment
- Six- month statement of the bank account
- Income tax assessment record not older than 2 years
- Statement of assets and liabilities of Borrower
- Proof of identity and residence
Apart from providing the much-needed finances to complete the education, the education loan comes with Income Tax rebate on the interest paid. Also, the deduction in respect of tuition fee can be availed in Income Tax. We keep on learning as we move through life. If you are keen on learning and developing your skills, nothing should stop you and an educational loan can be the ladder that will help you reach your goal.