Education Loans for MBA help you pay for your tuition fees,
study materials, and living and travel expenses.
Education loans for MBA degree programs may differ from
other types of loans as the interest rate may be low and the repayment schedule
can be deferred while the student is still in education.
Why should I apply
for Education Loan?
A loan helps make you independent. You'll help your parents
by financing your MBA by yourself. You'll be able to finance unforeseen
expenses related to additional exams to be taken, travel arrangements, laptop
computers, and books. For example, suppose your living expenses are higher now
since other low-cost campus arrangements might not be working out, or suppose
your travel expenses have gone up due to rate increase, taxes, etc. And yet
another reason of availing an education loan is the Tax Benefit. The borrower
or co-borrower can avail a benefit under Section 80(E) of Income Tax Act of
India.
Steps to Apply for an
Education Loan for Your MBA
Today, technology has made it very simple to apply for an
education loan. You can apply from anywhere in India. You can even apply before
your confirmed admission. It’s just a click away.
Most banks provide an online application and support. The
process is simple, as illustrated below:
Student: Complete an online education loan application form
Bank: Follow up with the student and parents to answer
questions
Bank: A representative visits your house and collects a
signed application form with the supporting documents
Student: Provides a completed education loan application
form with all the required supporting documents
Bank: A credit team will review and underwrite the education
loan application
Bank: Approves the education loan or asks for any additional
information required
Student: Completes the education loan disbursement
formalities by signing the education loan agreement
Bank: Deposits the education loan amount in the required
bank account electronically
Here are answers to frequently asked questions about these
types of loans:
Who can apply for
education loan?
Why should I apply
for an education loan?
A loan helps make you independent and helps your parents by
financing your MBA by yourself.
You'll be able to finance unforeseen expenses related to
your education, such as travel, a laptop computer, and books.
You get a tax benefit under Section 80(E) of the Income Tax
Act of India.
Education loans for MBA degree programs often feature low
interest rates and deferred repayment while you are in school.
How do I apply?
Most banks provide an online application with support. After
you complete the application form, a bank representative visits your house and
collects the application and required supporting documents. A credit team
reviews and approves the loan or asks for additional information. Once you sign
the education loan agreement, the bank deposits the loan amount in the required
bank account.
How do I choose the
right loan for me?
Look for banks that offer:
The full loan amount
A low interest rate
Security flexibility
Quick and door-step service
Can I apply for the
loan before admission to an MBA program?
Yes, most banks offer loan approval before your confirmed
admission. This helps you show proof of funding for your admission or for a
visa.
How much funding can
I apply for?
You can get a loan up to 100% of your cost of education.
When do I start
paying my Equated Monthly Installment (EMI)?
EMI typically starts six months after graduation.
Do I get a tax
benefit on interest paid on an education
loan for Mba?
Yes, you get a tax benefit under Section 80(E) of the Income
Tax Act of India.
My first term fee has
already been paid for. Can I now apply for a loan for the next term/semester?
Yes, you can apply for an education loan anytime.