Breaking down 5 Myths about Education Loans for MBA students.

MBA – the one course that has the capacity to change your life completely. Doing an MBA requires a lot of patience, hard work, dedication and one more thing – finance! For students aspiring for MBA but not having the funds to pursue their aspirations, there’s one amazing way out – executive education loans. Even though there are several reliable lenders in the market who can provide an executive education loan for MBA students, certain misconceptions in people’s minds stop many students from taking this efficient way of funding.

In this article, we look at 5 such myths and misconceptions and break them down for your benefit.

1. An education loan for MBA students will take a lot of time to process

People are quite used to traditional lenders taking several weeks to process their loan. That is why many of them may believe that even education loans will take this long. However, if you choose a reliable lender, especially in the NBFC segment, you can get your loan processed quickly. A secured loan may take 8-10 days while an unsecured loan might take up to 4-6 days to get processed.

2. Education loans for MBA students cannot be availed without providing high margin money

One primary thing that may act as a roadblock for several MBA aspirants is the worry of arranging the margin money for their education loans. Some lenders ask for a high percentage of margin money and thus, can lead to many shying away from taking an education loan for MBA students. Thankfully, there are lenders in the market that are willing to provide 100% financing, that is you may not have to provide any margin money when taking loans from such lenders.

3. Education loans are helpful only for abroad study plans

Lenders that provide education loans for MBA students know that the MBA programs in India can be as financially hefty as abroad MBA programs. Moreover, Indian cities that hold reputed MBA institutions often fall on the expensive side with high standards of living and costly rent.  To combat all these expenses, taking an education loan is a wise and beneficial option.

4 – An education loan for MBA students will cover only academic expenses

Gone are the days when an education loan would cover only your course fees and other academic charges. Nowadays, lenders offer to cover several expenses ranging from travel fare, accommodation, study material, and project expenses to even the cost of your entrance exams and admission application forms. Make sure you choose a lender that can provide you extensive financial aid so that you are covered comprehensively.

5. MBA loans are only for those with an excellent academic background

Lenders do ask for and check the academic background of their potential borrowers. However, those who may not have the topmost scores can rest easy too as there are many other factors besides the academic background that determine your eligibility for an education loan for MBA students. Lenders look not just at the past records, but also the future potential of the students they choose to lend money to.

Also keep in mind that the features of different education loans for MBA differ as per the lender. You are advised to read the loan documents carefully before going ahead with anything.