MBA is a very useful and lucrative career option in the present age. It provides great opportunities to grow in the corporate world. However, the increasing cost of education makes it difficult for students to finance their MBA degree, which is why there is an increasing trend of opting for an education loan for MBA.
In this article, we look at the details about the education loan options offered for MBA aspirants:
Eligibility Requirements:
The eligibility requirement to take an education loan for MBA is very lenient. The applicant has to be an Indian citizen above 18 years of age who has a confirmed admission in a recognized institute in India or overseas. The applicant is also required to have the loan agreement signed by an earning co-borrower. The courses covered include graduation or post-graduation and another professional degree/diploma courses approved by UGC/AICTE/IMC/Govt. etc.
Loan Coverage:
The education loan for MBA can cover up to 100% of the tuition fees of the institute. Additionally, it can also cover a part of the living expenses to be incurred by the applicant while pursuing MBA. This can include the cost to buy study material, computer or laptop, security or caution deposit paid to the college or university among others.
Documents Required:
The documents required for application of the loan include the following:
- Student KYC and educational documents
- Course and fee details
- Co-borrower KYC and income documents
- Collateral documents (if applicable)
Collateral:
It is not mandatory to pledge any of your assets as collateral to get the loan. However, the applicant can use security as collateral to get attractive interest rates. The assets accepted as collateral include residential property (house/flat/apartment), life insurance policy with surrender value equivalent to the required coverage, non-agricultural land, a fixed deposit assigned in favour of the lender.
Disbursement:
The loan amount is generally disbursed in Indian Rupees. It can be disbursed to the educational institute in the form of instalments, as per the schedule described. The loan amount that covers the living expenses can be disbursed in the co-borrower’s account.
Repayment:
The repayment of the education loan for MBA is easy and convenient. There are many flexible repayment options available for the applicants. The applicants can repay only the interest part during the duration of the course. There are also options for paying partial interest or the entire EMI amount during the duration of the course. The applicant can alternately choose to start repaying the loan post the grace or moratorium period. The grace period is a period of three or six months after the applicant has finished his/her education or started their job. It gives the individual enough time to gather their finances before they start paying their loan instalments.
We hope this article was helpful to you and informed you about the details about the educational loan for MBA like eligibility, loan coverage, collateral, disbursal and repayment options available for the students and its advantages. Have a great day!
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