MBA is an expensive course to pursue, and then, you might have a good financial background, but you still have to struggle with MBA program fees. Most students from a good financial background look MBA full scholarship. Why so?
Well, you do want to burden your parents with an education loan, and the interest rate is pretty low if you take a loan from a bank that has tied up with that particular business school.
Even you can get a collateral-free loan, so either you can take an MBA scholarship or loan and repay it once you have secured a job.
Today, in this blog, you will learn about different loans and scholarships for MBA students.
Different Types of Education Loans
There are 2 types of education loans that you need to consider in an MBA program.
- Education Loans
- Education Loans for Premier Business Schools
Education loan is for everyone; for any course, you can get an education loan and repay it as per the guidelines mentioned while taking it.
Education loan for premier business schools is different from normal education loan. Most top business schools are covered in this, and the students get loans according to different schemes. Here, getting a loan is an easy process, even if you get the loan for which you pay interest after completing your education.
Education Loan Option for MBA Program
Public sector banks in India, including the State Bank of India, Punjab National Bank, Central Bank of India, Punjab & Sind Bank, Dena Bank, and Canara Bank, provide education loans for MBA students.
You can also obtain a loan from non-banking financing companies (NBFCs), such as Credila Education Loan and Avanse Financial Services, or private banks like ICICI Bank, Axis Bank, and Kotak Mahindra Bank.
After availing loan for the MBA program, the cost can go either up or down depending on the education loan you are getting and the interest you need to pay.
Interest Rate Schemes
Most financial institutions offer various interest rate programs for educational loans for MBA students attending IIMs and other top-rated MBA universities instead of less prestigious MBA colleges, which is vital to remember.
Compared to lower-ranking colleges, education loans are typically offered at reduced rates for IIMs, and highly regarded MBA institutions. You might obtain a loan from one of the public sector banks for a sum between 15 and 30 lakhs with an interest rate ranging from 8.35% to 11.8%.
You might even acquire a loan of up to 75 lakhs from Axis Bank when it comes to private banks or NBFCs, but the interest rate jumps to 12.5%. Please note that if you are accepted into a good business school, SBI and PNB have quite generous student-friendly programs.
How to Secure a Loan for MBA Course
Here are a few tips to secure a loan for an MBA program. Let’s have a look:
- Look for MBA loan options that are comparatively cheap.
- Try to pay interest during the course period
- Look for shorter repayment periods for MBA loans
- Calculate the expenses that you are expected to pay
- Don’t forget to compare the loans from different banks before taking any education loan.
MBA Scholarships in India
Different organisations like OP Jindal, Aditya Birla Group, PNB Housing and many others offer many MBA scholarship schemes.
If you are a deserving candidate, then leading business schools like XLRI, IIMs, NMIMS, etc., offer financial help to students through MBA scholarships. Some of the renowned MBA scholarships are:
- Merit Cum Means Scholarship for Professional and Technical Courses CS (Minorities)
- ONGC Scholarship
- BML Munjal Scholarship
- Post Graduate Scholarship for Professional Courses for SC/ST
- NMAT Scholarships
- Scholarships offered by IIMs
- IDFC FIRST Bank Scholarship
You can apply for these scholarships through their official website or national scholarship portals. IIM scholarships can be availed only by IIM students, and every IIM institute has different criteria to judge give the scholarship to the candidates.
These are some of the loans and scholarships for MBA students that you should have known. Now that you know how you can finance your MBA, it’s time to enrol in it.
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