5 Things You Need to Know About Applying for MBA Student Loans.

MBA, the course of your dreams! Getting an MBA is the perfect way to amp up your present career and build your future in the corporate world. For some students, getting an MBA degree may seem only like a dream because of the financing it might require. For them, a student loan can be the silver lining amongst dark clouds. An MBA student loan will provide you with the funding required so that you can pursue your dream degree from the best university. To help you gain a better understanding, we have listed down 5 things you need to know about applying for an MBA student loan. Let’s check them out.

1. The eligibility criteria

Several banks and NBFCs lend student loans to MBA aspirants. The eligibility criteria may differ between these institutions. The general criteria would be:

a. You should be an Indian citizen of 18 years and above

b. You should meet the educational qualifications required by the lender

c. Your specific MBA course and institute should be recognized by the lender

d. You should have secured admission into the university of your choice

Your eligibility might also be evaluated based on personal interviews, academic records, and certain other criteria set by the lender.

2. Documentation Required

Again, the documentation needed may differ slightly between lenders. Generally, the documents required would include the following:

From the applicant, co-applicant, additional co-applicant, and/or guarantor- Proof of residence, signature verification, date of birth proof, and photo IDs.

From the primary applicant (student) – Academic documents and fees structure.

From the co-applicants – Income proof, collateral documents (in case applicable), bank statements, and proof of relationship with the student.

3. MBA student loan application procedure

You can apply for the loan by filling in the loan application form and submit it along with the required documents. Once your application is verified, the lender will send you the loan offer letter with the loan amount outlined and may ask you for additional documents. You may have to give a personal interview to the lender too.

If all goes well, the lender will send you the Loan Agreement, containing the terms and conditions of the loan. Do review it thoroughly before signing it. After you have returned the signed agreement along with the required documents, the lender will proceed to disburse your MBA student loan.

4. Processing fees and other charges

Do be sure to check the processing fee and other charges levied by the lender on their MBA student loans. Usually, the processing fee is around 1-2% of the loan amount and could differ on a case-to-case basis. Pre-payment penalty, EMI late payment penalty, cheque bounce charges, and so on should also be considered before going ahead with your application for financing.

5. Option of unsecured loans

If you opt for an unsecured MBA student loan, you do not have to provide an asset to the lender as collateral. A secured loan will require you to provide collateral. So, even if you do not have property or other assets as collateral, remember that you can always opt for unsecured loans and go ahead with your studies. Just be sure to check the terms of financing thoroughly so that you get an affordable loan. We hope this article helps you achieve your dreams of higher studies.