An MBA fee in India can be anywhere from 5 lakh to 20 lakh which is an amount that stresses most students out. Students who have the potential but lack the funds, often back out of getting an MBA from a reputed university. However, finances aren’t something that should stop any student from getting the education they deserve. That is where an Education Loan for MBA Students comes into the picture.

Nitin is a highly intelligent student who got into one of the top universities in India for MBA; but, Nitin’s father is a lower middle class employee who, unfortunately, cannot afford to give his son the education he needs. However, he has found a solution to his problem. Nitin was originally hesitant about getting an MBA due to lack of funds. Thanks to the banks and non-banking financial companies (NBFCs) that offer education loans, even a family like Nitin’s can afford a top-class MBA university education.

Who is eligible for an education loan for MBA students in India?

If the person applying for the loan is an Indian citizen and has proof of admission to the course, then they are eligible for an education loan. The age bracket is normally 16-35. If the student has gotten admission in top MBA universities like IIM, IIT, SP Jain, and some others, then it is much easier to get the loan approved due to the high-pay placement opportunities post the degree.

What are the different expenses that are covered under the education loan?

Apart from the tuition fee, there are some other expenses that are covered by an education loan. Most lenders fund up to 90-100 percent basic course fee of the student’s education. Other expenses that are covered are:

- Tuition fee and accommodation expenses (hostel charges)

- Travel expenses such as train tickets, plane tickets, etc.

- Books and other equipment.

- Examination, library, and lab fees.

- Purchase of a laptop or other electronics that are required to complete the degree.

- Some top banks also finance a two-wheeler.

Though getting an Education Loan in India is quite simple due to the advancements of technology, there are some documents that are required by all banks and non-banking financial companies (NBFCs) to complete the loan process.

What are the different documents that are required to complete the loan process?

- Loan application either filled out online or in the bank.

- Proof that you have been admitted to the course.

- Several passport size photos that display your face clearly.

- Address, age, and citizenship proof.

- Bank statements.

- Income tax statements.

- Credit report.

What are the repayment options and benefits of an education loan for MBA students in India?

The repayment of an education loan normally starts a year after completion of the course or six months post landing a job; whichever happens first. This period wherein you don’t have to pay the loan is called a moratorium period. The repayment period usually lasts for about five to six years but can easily be extended depending on the agreement between the borrower and the lender. Apart from this, according to section 80E of the Income Tax Act of India, borrowers of an education loan get income tax benefits.

We hope this article cleared most of your doubts. An education loan is convenient but also risky if you don’t pay the EMIs on a timely basis. Thus, do your research completely and thoroughly before taking an education loan. Good luck!

Related Article:Benefits of a Study Abroad Loan!