Not only preparing for to get into top MBA colleges is a cumbersome task but also funding the course is equally difficult. Securing the provide letter is not all that is the need for admissions but also the resources to fund the fees.
For a number of aspirants seeking to complete CAT, the course fee of an IIM or top B-school can be a significant concern. The fee charged these colleges, in turn, makes MBA one of the most expensive courses in India and abroad. While their course fee is exorbitant, we can not deny the fact that they provide world-class facilities/ infrastructure and unexcelled faculties.
For your reference, here is the course fee for some of the top MBA colleges accepting CAT score:
|IIM Bangalore||INR 19.50 lakh|
|IIM Ahmedabad||INR 21 lakh|
|IIM Calcutta||INR 19 lakh|
|DMS, IIT Delhi||INR 4.39 lakh|
|DoMS, IIT Madras||INR 6 lakh|
|IIM Lucknow||INR 14 lakh|
|XLRI Jamshedpur||INR 16.8 lakh|
|IIM Kozhikode||INR 16 lakh|
|DoMS, IIT Roorkee||INR 4.18 lakh|
We believe that money shouldn’t hamper the candidates' dream and therefore many B-Schools, via tie-ups with banks provides educational loans at nominal interest rates for which repayment structure is also various than other loans.
Apart from tie-ups, banks also offer loans on one to one basis for students wishing to pursue their higher studies. Before aspirants opt for any of the education loan schemes, it is important that they know the terms and conditions of each and every scheme so the loan doesn’t haunt them once their MBA is clear.
CAT education loan will not only help you manage your finances for the course but also lets you save for the unforeseen expenses during the course duration. Here is a clear guide for MBA candidates who wish to opt for education loan. To reduce the burden of repayment, candidates must choose the loan with least interest value and other exemptions. Most of the candidates are not familiar with the clear details about the education loan.
Each financial institution sets the upper limit of the loans they can offer. Aspirants must evaluate all their expenses and then plan further to choose the best possible option.
In case of any additional expenses requirement, aspirants must manage them well in advance. Candidates must know that there are certain expenses covered under the education loan which comprise the following:
With innumerable options available for funding, it is necessary that the candidate assesses the choice from every aspect. Aspirants must consider certain things before they make the final judgment:
Every bank provides education loan at the various rate and the maximum limit also varies. Given below are some of the most preferred loan offers in India:
|Bank Rate||Interest Rate||Maximum Loan Amount||Repayment duration|
|State Bank of India||9.35% to 10.70%||Up to 30 lakhs for IIMs and other top B-Schools||7 to 12 years|
|Allahabad Bank||For IIMs is 8% and for other institutes is 10%||Up to 20 lakhs||7 years|
|Bank of Baroda||20 lakhs/ 10 lakhs (depending upon the institute)||10.5% to 11.5%||5 years|
|Punjab National Bank||Up to 20 lakhs||8.15% to 8.75%||10 to 15 years|
|IDBI Bank||Up to 20 lakhs||9.7%||10 to 15 years|
*Most of these banks offer exemptions in interest rates for female participants.
Aspirants must keep the following documents handy before they apply for education loan:
|Proof of admission by the B-School||Mark sheet of the highest qualification|
|Estimate of expenses and schedule of fee payment at the institute||Bank statement of last 6 months|
|Asset and liabilities statement||Income tax assessment records (not previous than 2 years)|
|Identity proof||Residential proof|
We hope this article was helpful in getting to learn about MBA Loans for India and abroad. Make sure you have all the key papers and details available to you.