A great option for working executives aspiring for MBA

In the present world, many people working in the corporate sector are looking to pursue a higher education in management or any other area. A good way to get financing for such courses is to avail MBA student loans. 

In this article, we elaborate on education loans for MBA courses and the details about the same:

• Eligibility criteria: The student applying for the loan must be an Indian citizen and 18 years or above. Along with that, the applicant also should have a confirmed admission before the final disbursement of the education loan. The applicant must also have an earning co-borrower in India. 

• Documents required: The documents required for application for MBA student loans for working executives include student KYC & educational documents, course and fee details, co-borrower KYC & income details and collateral documents if applicable.

• Loan coverage & Margin: The MBA student loans can cover both the tuition fees and living expenses of the student. Some of the other expenses that can be covered by the educational loans include travel expenses for students travelling abroad. It can also include caution deposit or refundable deposits of the institute. There are also lenders who provide 100% MBA education loans to the students depending on their credentials. So, the applicant does not have to pay any part of the tuition fees called margin portion. 


• Disbursement: The loan amount can be disbursed in installments over the duration of study, yearly or semester wise according to the rules and regulations of the institute. The loan amount can be disbursed directly in the applicant’s account or can be given in form of cheque or demand draft.  In case of overseas loans, the applicant can chose to get the money transferred with a third party FOREX vendor so as to get the money in the currency desired. 

• Repayment: Lenders offer various options to the students to make the repayment of MBA student loans convenient and flexible for them. The student has the option to start repaying the education loan during the course or 6 months after the course is completed. While repaying the loan during the course, the applicant can choose to repay only the interest part or partial interest or complete EMI repayment. 

• Charges & Services: The various charges usually levied on the applicants in MBA student loans include processing charges, pre-payment charges or restrictions, late payment charges, cheque bounce or ECS bounce charges. Other charges may include account statement charges or document retrieval charges depending on the rules and regulations of the lender. 

• Collateral: Some lenders may ask for pledge of an asset as a collateral security from the applicant before disbursing their MBA students loan. Generally, it is required in case of education loans of high amounts. The securities accepted as collateral may include residential property, agricultural land, FD or a life insurance policy with equivalent surrender value.  

We hope this article was helpful to you and informed you about the loan process and details for your MBA studies. Wishing you all the best!

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