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Every year, TopMBA surveys nearly 4000 aspiring MBAs around the world to establish whether finance is likely to prove a barrier to study. The latest survey found that most had already looked seriously into how they would fund business school. A wide variety of methods were cited, from scholarships to personal loans. Table 1 depicts the results of the survey conducted amongst Indian MBA aspirants. A remarkable 86% of those surveyed reported that one of the sources of funding they expect to obtain is a loan.

Source: QS TopMBA Applicant Survey 2006

Table 1: Sources of Funding

As simple as this sounds, many students don't know where to start when it comes to obtaining financial aid or loans in particular. Indian nationals have access to a wide range of educational loans geared to fund MBA studies. The State Bank of India, Allahabad Bank, State Bank of Mysore, and Bank of Baroda are a few of the many banks offering financial aid to prospective MBAs. In most cases, candidates will already need to have secured a place at a recognized institution and may need to supply a guarantor, such as a parent or close relative with sufficient funds to cover the loan.

What will your Loan Cover?

In most cases, loans will pay tuition costs and housing, in addition to library fees, book purchases, travel expenses, and often the purchase of computers you may need to complete your course work. Exact loan amounts and interest rates vary, so do your research and contact a variety of financial institutions before making your choice.

The following loan specifications from the State Bank of Mysore are a good example: -