How to Afford the Fees of an MBA College:
Why should I apply for an 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?
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.
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