Financing The MBA:- The whole about studying in MBA

It has turn out to be an ordinary fashion that the Top B-schools will increase their fee in every academic year. The most possible alternative to learn these schools is to achieve Education Loan.

MBA Finance, Finance For MBA Students

Studying in MBA is once a life time issue for an MBA candidate. This becomes going more because of increasing the fees of the Top B-Grade schools as per academic year. Now a days it become a common fashion that the Top B-Grade schools increase their fees as every successful academic year. As the information, IIM Ahmedabad revised his fees structure and hiked the fees to five percent for the academic year 2011-2013. Now the revised fee for the academic year of 2011-2013 is Rs. 14.45 lakh. Where as the fees for the 2010-2012 batch of IIM Ahmadabad was 13.7 lakh.
Each Student who prepares for the examination of CAT has the only one dream to make an admission in Top B-schools but In this situation, the hard worker students and the successful candidates become often disappears after being called by the Top B-schools for the admission, because of submitting the high fees. Now It is a big problem for the lower and the middle class belonging students to paying the highest amount of fees after qualifying the examination of CAT and get IIM Colleges.The one and only possible option is to get Education Loan from the BANK.
The student can take education loan from the top banks of the country, as the placement the B-grade Schools can take care of the student’s loan repayment. The Student should not have to negotiation on taking education loan as it provides a high return on investment.
As all know that the MBA Education is too much costly but for study in MBA the student loans are easily available at every top banks of India. It is very important that the student should have to target only the Top B-grade schools irrespective of the cost of the education. If the student qualify the exams and get the admission in Top B-grade schools, the overall problem of students become solved because after the placement from the colleges in top companies student get the highest payment and then after they can deposit the loan amount to the company in an easy way. According to the principle consultant of Carrer Launcher, Mr. Gejo Sreenivasan that ” placement from the Top B-grade schools, the salary would take care of the loan that the student have taken”.
Need for loan:- It is true thing that every student who is trying to get the Top B-grade schools is not from a rich family. So, not many students can afford such highest amount of fees without the support of the bank loan. For those students who have not enough money to pay the highest amount of fees the bank is the ultimate option. The Bank loan take care of your all expanses. In other words the bank loan covers most of the expanses of the students that they would expand in their two years of pursuing MBA. The basic expanses covered by the bank after getting the bank loan are as follows:-
Amount of fees payable to the colleges/schools/hostel.
Purchase of books/equipment/Instrument/uniforms.
Recklessness Deposit/Building Fund/Refundable Deposit( maximum 10 % tuition fees for the entire courses).
Travel expanses/Passage money for studies abroad.
Purchase of computers considered necessary for completion of course.
Some of the leading bank of India also provides the student for the cost of two wheelers as part of the loan. For Example:- The State Bank Of India covers the cost of a Two-wheeler up to Rs. 50,000. Thus at whole The student need not to have any tension to study in the Top B-grade schools while paying the highest amount of money after getting the bank loans from the leading banks of India.

How To Apply For the Loan:-

In order to apply for the loan ,The student have to first choose the service provider Bank which the student would like to apply for the loan. It is most likely to choose the student to that provider Bank which the Institute has a tie up with that provider Bank. The second option to apply for the loan is to choose that Bank where there is an account of the Parents or guardians to that Bank.
In this time, the epoch of internet, the student can apply to most of the banks for loan purpose with the help of online application form. Today the most of the bank provide the facility of online application form for the different different tasks. If the student are applying online through the online application form of the bank, the loan will be authorized only in major and the student will haveto contact to the bank for definite approval and payment of the education loan.
If the student are making personal application, then the student will have to undertake certain fixed procedures. When the all procedures of filling the application form, the student will haveto go through from a round of personal discussion in which the student will be asked questions related to their academic performance, course selected questions, Institute etc. by the bank administrator. Mr. Harsh Roongta, CEO of suggests that “During this stage, it is very important that the student should be logical and clear about one’s selection of course and its future possible of generating income”.
The student will have to submit the validated underneath documents for the identification, security purpose, educational background etc. At the same time as applying for the educational loans, the applicant should also have to present a guarantor. The guarantor should be an authorized person. The guarantor could be the parents or guardians of the students. The bank will run a methodical check of the guarantor and his/her credit history before sanctioning the loan. After completion of all these such procedures of the bank, the loan may be sanctioned or denied. At one time the all formalities or procedures have been completed, the bank will pay out the loan regards to students for the educational purpose.
What to watch out for:-
While planning for the loan or while to achieve the loan from the bank the student should have to make some points into their mind. The student should keep some following points into their mind.

Loan Eligibility:-

According to the rule of Indian nationalized and Private banks,the eligibility of the borrower for education loans are as follows:-
  • The Borrower must be an Indian civilized person.
  • Borrower must be in the age group of in between 16-26 .Borrower of any other range specified by the bank.
  • Borrower’s parents/guardians should have a regular source of income. This is because of repaying the loan amount while it needed by the provider bank.
  • Have a secured admission in any of the graduate/post-graduate courses offered by the college/institute/university recognized by the UGC/AICTE/Govt. etc.
If the course is qualified for the loan :- Most graduate, post-graduate and professional courses (engineering, medicine, veterinary, law, density, management).
Loan Amount:- The Quantity of loan offered by most of the banks is up to Rs. 10 lakhs for those students who are studying in India and up to Rs. 20 lakhs for those students who are studying abroad.
Expenses covered by the loan:- Most of the banks usually cover the expenses of students of fees of colleges, hostels, exams, library and laboratory, books, equipments and communications, travel expenses, expenses for purchase of Laptops, Computers etc.
Providing security or guarantee: - It is not necessary to guarantee security required for loans up to Rs. 4 lakhs, co-operation of parents or guardians required.
Margin :- Up to Rs. 4 lakhs of loan, there is no margin rate required. To get loan above Rs. 4 lakhs, there is a margin of 5 per cent for studies in India and that of 15 per cent for studies in abroad country.
Repayment possession :- The maximum loan term is seven years. The repayment or the suspension period is course period and one year or six months after getting job, either is earlier.
Interest Rates :- Interest rates of the banks are an important issue to choose the bank for the loan. Have a look at the interest rates of some of the main banks of India.
Education Loan Interest Rates since On April 5, 2011 for Seven Years Loan term
Banks/Lenders Rate of Interest
Up to Rs. 4 lakh Rs. 4 lakh to Rs. 10 lakh
  • Axis Bank 15.75 14.75,'16.75
  • Bank of India 13.00 13.00 ,13.50
  • Bank of Baroda 11.50 13.50
  • Corporation Bank 11.65 12.15 ,12.65
  • Central Bank of India 11.50 11.50
  • IDBI Bank 12.75 13.00
  • Indian Overseas Bank 11.50 12.50 ,12.75
  • Punjab National Bank 12.00 12.75
  • State Bank of India 12.00 12.50 ,13.50
  • Union Bank 13.25 13.00 ,13.75

For the female students Some banks offer 0.50 per cent allowance in interest for the. Some such banks are State Bank of India, Punjab National Bank, Union Bank of India etc. Interest funding is offered by Central government on education loans for students from Economically Weaker Sections (EWS) with annual gross parental/family income up to Rs. 4.50 lakh per annum for studies in India.

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