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Aspire to be an MBA student but financially weak? Thinking what to do? How to arrange money for the high amount of fees structure of the course? Well, arranging money for higher studies needn’t fret you anymore. Both domestic and international education has become much affordable with a plethora of options available today — one of the key tools being the bank loans.

Team CoolAvenues presents an insightful detail about the availability, eligibility, procedure and other dynamics of a bank loan to help an aspiring MBA student.

Going by the current market trends, a management degree in a reputed B-schools in India would cost approximately 10, 000, 00 and if an international destination is on your mind then the figure may sore up to anywhere between £15,000 to $50,000 per annum for an MBA or similar masters.

While it is almost impossible to retain such a lofty balance accounts, loaning the amount from the bank stands out as an easier option. The purpose and the amount of the loan, however, may vary as per individual needs. For instance, students may avail them for diverse needs like payment of fees, purchase of books / uniforms / instruments, travel expenses if the student is studying abroad, thesis, tour and projects, to list a few.

Study loans are a premium service offering made by almost all nationalized banks for domestic and international education. Besides some private trusts are also running study loan schemes, the terms and conditions in this case may vary as per individual organizational policies.

The financial organizations are advertising about their education loans in various campuses across the country. However, the eligibility criteria may differ from one bank to the other. Some of the key deciding factors, for instance, may be the past academic record of the candidate, nationality, annual income of the family and applicant’s age limit. While most banks will adhere to the general guidelines, some may ask for additional details such as an approved list of expenses from the school, income tax statements from the student and possibly the parents, and an account of assets and liabilities that they own. Different banks have different schemes with some common features.

The amount of the loan, for example, will usually be up to a maximum of Rs. 7, 50,000 for studies within India and Rs. 15 lakh (Rs. 1.5 million) for studies abroad. (Many banks, however, do offer more — at the State Bank of India, one can loan up to Rs. 20,00,000 — Rs. 2 million for going abroad, whereas HSBC offers Rs. 25,00,000 or Rs. 2.5 million, for the same).

The interest rate in case of a bank loan will normally adhere with the prime lending rate of the banks, if the loan is up to Rs. 200,000, but if the loan is above 200,000 then security is needed. (Most banks have moved this dividing point from Rs. 2,00000 up to Rs. 4,00000).

In terms of payback, most banks give the candidates equated monthly installments (EMI) option. They also offer some cushion for job hunting before the commencement of the repayment. Either the State Bank, for instance, expects the candidate to start payments from six months after getting a job, or one year after the completion of your course— whichever comes first.

Some of the Banks that are providing educational loans for the post graduation courses in India are:

1. State Bank of India
2. State Bank of Mysore
3. Allahabad Bank
4. Bank of Baroda
5. Industrial Development Bank of India (IDBI).
6. ICICI bank
7. HDFC bank
8. Citibank

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